CHUNLI MEDICAL(688236) Huachuang Securities·2024-11-04 12:43Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 20 yuan, while the current price is 13.79 yuan [1]. Core Views - The company's Q3 2024 performance was significantly impacted by centralized procurement policies, leading to a 49.03% year-on-year decline in revenue [2]. - The gross profit margin for Q3 2024 was 62.70%, down by 4.26 percentage points, due to price reductions from centralized procurement [2]. - The company is expected to recover from the impacts of centralized procurement by 2024, with growth driven by domestic orthopedic surgery demand and overseas expansion [2]. Financial Performance Summary - For the first three quarters of 2024, the company reported total revenue of 508 million yuan, a decrease of 35.84%, and a net profit attributable to shareholders of 61 million yuan, down 66.14% [1][2]. - In Q3 2024, the company recorded a revenue of 128 million yuan, a decline of 49.03%, and a net loss of 18 million yuan [1][2]. - The projected net profits for 2024-2026 are 140 million yuan, 280 million yuan, and 348 million yuan, respectively, with year-on-year growth rates of -49.5%, +99.5%, and +24.2% [2][3]. Financial Indicators - The total revenue for 2023 is projected at 1.209 billion yuan, with a year-on-year growth rate of 0.6%. For 2024, the revenue is expected to drop to 885 million yuan, reflecting a -26.7% change [3]. - The earnings per share (EPS) for 2024 is estimated at 0.37 yuan, with a price-to-earnings (P/E) ratio of 37 [3]. - The company's total assets are projected to be 3.549 billion yuan in 2024, with a debt-to-asset ratio of 19.98% [4].