Zhejiang Gongdong Medical Technology (605369) 中邮证券·2024-11-04 07:41Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2]. Core Insights - The company has been focusing on medical polymer consumables for nearly 40 years, and it is expected to see rapid growth in orders due to the resolution of inventory issues in the downstream market and potential collaborations with overseas quality medical clients [3][4]. - The company is projected to achieve revenues of 1.124 billion, 1.327 billion, and 1.591 billion yuan for the years 2024, 2025, and 2026, respectively, with year-on-year growth rates of 15.27%, 18.06%, and 19.89% [3][4]. - The net profit attributable to the parent company is expected to be 184.29 million, 231.20 million, and 275.73 million yuan for the years 2024, 2025, and 2026, with growth rates of 68.88%, 25.45%, and 19.26% [3][4]. Summary by Sections Company Overview - The company specializes in the research, production, and sales of medical polymer consumables, having developed a comprehensive product system with over 6,000 specifications across six major categories [10]. - The company has a concentrated shareholding structure, with the largest shareholder holding 52.24% of the shares, indicating strong control by the core management team [12][13]. Financial Performance - In 2023, the company experienced a revenue decline of 34% due to inventory destocking by overseas clients and high base effects from the previous year [17]. - However, in the first three quarters of 2024, the company reported a revenue increase of 17.31%, indicating a clear performance turnaround [15][18]. Product and Market Strategy - The company has completed over 5,000 sets of various injection molds and emphasizes the development and maintenance of customized client relationships [29]. - The company is actively expanding its business in the global in vitro diagnostics (IVD) market, leveraging its strong mold development capabilities to cater to leading clients in the industry [33]. Revenue and Profitability Forecast - The company is expected to achieve a gross profit margin of 33.35% and a net profit margin of 16.91% in the first three quarters of 2024, reflecting improvements in operational efficiency [20]. - The projected P/E ratios for 2024, 2025, and 2026 are 25.87, 20.62, and 17.29, respectively, indicating a favorable valuation trend as earnings grow [3][4].