TC Medical(600763) Huachuang Securities·2024-11-01 10:56Investment Rating - The report maintains a "Recommended" rating for Tongce Medical (600763) with a target price of 60 yuan [1]. Core Views - The company's performance in the first three quarters of 2024 met expectations, with revenue of 2.233 billion yuan (+2.21%) and a net profit of 498 million yuan (-2.63%) [1]. - The dental implant business has shown positive growth post-collection, with revenue of 384 million yuan (+11.7%) in the first three quarters of 2024 [1]. - The rapid expansion of the Dandelion hospitals is progressing smoothly, achieving revenue of 523 million yuan (+19%) in the first three quarters of 2024 [1]. - The company is actively implementing strategic plans, focusing on talent development and expanding new hospitals and branches [1]. Financial Summary - Total revenue for 2023 is projected at 2.847 billion yuan, with a growth rate of 4.7%. For 2024, revenue is expected to be 2.966 billion yuan (+4.2%), and it is forecasted to reach 3.475 billion yuan in 2025 (+17.1%) [2]. - The net profit for 2023 is estimated at 500 million yuan, with a decline of 8.7%. The net profit is expected to increase to 568 million yuan in 2024 (+13.4%) and further to 664 million yuan in 2025 (+17.0%) [2]. - The company's gross margin for Q3 2024 is reported at 43.51%, reflecting a decrease of 1.11 percentage points due to ongoing investments in Dandelion hospital expansions [1]. Business Performance - The orthodontics and pediatrics segments experienced a decline in revenue, influenced by the macroeconomic environment, while the pricing strategy remains robust [1]. - The company has opened 45 Dandelion hospitals, contributing to its revenue growth and indicating a strong market presence [1]. - Cost control measures are effective, with sales expense ratio at 1.43% (+0.43 percentage points) and management expense ratio at 7.90% (+0.26 percentage points) [1].