SHANGHAI AOHUA PHOTOELECTRICITY ENDOSCOPE CO.(688212) Tai Ping Yang·2024-10-31 14:43Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase in stock price of over 15% compared to the CSI 300 index in the next six months [6][7]. Core Views - The company is expected to benefit from the gradual recovery in the endoscope and medical imaging equipment market, with a significant increase in procurement scale observed in September 2024, which is 115.05% higher than March 2024 [1]. - The launch of new products, such as the AQ-150 Series 4K ultra-high-definition endoscope system and the AQ-120 Series endoscope system, is anticipated to strengthen the company's competitive position in the grassroots market [1]. - Despite a short-term pressure on revenue growth, the company is projected to see a release of performance as equipment updates are implemented [1][2]. Financial Summary - For the first three quarters of 2024, the company achieved a revenue of 501 million yuan, a year-on-year increase of 16.79%, while the net profit attributable to shareholders decreased by 17.45% to 37 million yuan [2]. - The third quarter of 2024 saw a revenue of 147 million yuan, up 5.39% year-on-year, with a significant net profit increase of 345.17% due to the reversal of stock payment expenses and receipt of government subsidies [2]. - The comprehensive gross margin for the first three quarters of 2024 decreased by 6.39 percentage points to 69.25%, primarily due to changes in accounting standards [1][2]. Earnings Forecast - The company is projected to achieve revenues of 815 million yuan, 1.017 billion yuan, and 1.272 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 20%, 25%, and 25% [4]. - The net profit attributable to shareholders is expected to be 72 million yuan, 136 million yuan, and 186 million yuan for the same years, reflecting growth rates of 24%, 91%, and 36% [4]. - The earnings per share (EPS) are forecasted to be 0.53 yuan, 1.01 yuan, and 1.38 yuan for 2024, 2025, and 2026, respectively [4].