Meinian Onehealth(SZ:002044) China Post Securities·2024-11-04 08:30Investment Rating - Buy rating maintained for the stock [2] Core Views - The company's Q3 2024 revenue reached RMB 2.935 billion (+3.63% YoY), with net profit attributable to shareholders of RMB 240 million (+10.33% YoY), slightly exceeding expectations [3] - Revenue growth is expected to improve in Q4 due to the peak season for health check-up services, with stable order volume and increasing average customer spending [3] - Gross margin improved to 45.43% in Q3 2024 (+1.12 pct YoY), with net profit margin rising to 8.19% (+0.5 pct YoY) [3] - Operating cash flow improved to RMB 289 million in Q3 2024 (+4.05% YoY), with cash and cash equivalents balance reaching RMB 1.46 billion (+3.14% YoY) [3] - AI products, including the "Health Xiaomei" AI health management robot and AI smart glucose management system, have been launched and are being piloted in 26 branches [4] Financial Projections - Revenue is projected to grow to RMB 11.008 billion in 2024, RMB 11.837 billion in 2025, and RMB 12.687 billion in 2026 [5] - Net profit attributable to shareholders is expected to reach RMB 333 million in 2024, RMB 629 million in 2025, and RMB 895 million in 2026 [5] - EPS is forecasted at RMB 0.09 in 2024, RMB 0.16 in 2025, and RMB 0.23 in 2026 [5] - P/E ratios are projected at 55.12x for 2024, 29.2x for 2025, and 20.52x for 2026 [5] Financial Ratios and Performance - Gross margin is expected to improve from 42.5% in 2024 to 45.3% in 2026 [8] - Net profit margin is projected to increase from 3.0% in 2024 to 7.1% in 2026 [8] - ROE is forecasted to rise from 4.1% in 2024 to 9.4% in 2026 [8] - Asset-liability ratio is expected to decline from 56.4% in 2024 to 52.9% in 2026 [8] AI and Innovation - The company has partnered with Huawei to launch the "Health Xiaomei" AI health management robot, which is currently being piloted in 26 branches [4] - AI-driven products, such as the AI smart glucose management system and AI sales assistant "Meinian Xiaoxing," are expected to enhance operational efficiency and customer engagement [4]