Winner Medical(SZ:300888)2024-11-04 03:43Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its performance relative to the market [6]. Core Insights - The company reported a 17% year-on-year increase in revenue for Q3 2024, reaching 2.04 billion yuan, aligning with expectations. However, net profit attributable to shareholders fell by 88% to 170 million yuan due to a high base effect from the previous year [6][7]. - The medical business showed a recovery with a 13.1% year-on-year revenue growth in Q3, while the consumer goods segment accelerated with a 20.6% increase in the same period [6][7]. - The company has implemented an equity incentive plan aimed at achieving a revenue growth target of 13-18% from 2025 to 2027, reflecting confidence in future performance [6]. Financial Performance Summary - For the first three quarters of 2024, total revenue was 6.07 billion yuan, a 1% increase year-on-year, while net profit attributable to shareholders decreased by 74% to 553 million yuan [7]. - The gross margin for Q3 2024 was 48.1%, down 2 percentage points year-on-year, primarily due to high raw material costs [6][7]. - The company’s total revenue projections for 2024 are set at 8.75 billion yuan, with expected growth rates of 6.9% [7]. Business Segments - The medical segment accounted for 43.7% of total revenue in Q3 2024, with core products like high-end dressings and personal health care showing significant growth [6]. - The consumer goods segment represented 55.4% of total revenue, with standout products such as wet and dry cotton towels experiencing a 31.3% increase in sales [6][7]. Future Outlook - The company anticipates gradual recovery in gross margins as high-cost inventory is depleted, and it expects to benefit from the acquisition of GRI in future quarters [6]. - The forecast for net profit attributable to shareholders for 2024-2026 is adjusted to 790 million, 1.03 billion, and 1.16 billion yuan respectively, reflecting a slight downward revision for 2024 and upward adjustments for 2025 and 2026 [6][7].