SINOMED(688108)2024-11-11 12:43Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [6][7]. Core Views - The company has shown significant revenue growth, with a 30.20% year-on-year increase in revenue for the first three quarters of 2024, reaching 318 million yuan, primarily driven by a substantial rise in coronary product sales [1]. - The net profit attributable to shareholders for the same period was -7 million yuan, reflecting an 83.84% year-on-year increase, influenced by scale effects from revenue growth and a significant reduction in management expenses [1]. - The company’s gross margin improved by 2.64 percentage points to 61.29% due to increased revenue and optimized processes [1]. - The new drug-eluting stent's clinical trial results have demonstrated significant advantages, supporting its registration applications in overseas markets [1][2]. Summary by Sections Financial Performance - For Q3 2024, the company reported a revenue of 105 million yuan, a 25.76% increase year-on-year, while the net profit attributable to shareholders was -14 million yuan, a decrease of 18.72% [1]. - The company expects revenues of 470 million, 699 million, and 1.035 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 37%, 49%, and 48% [2][4]. Cost Structure - The comprehensive gross margin for Q3 2024 was 65.57%, with sales expense ratio at 17.21%, management expense ratio at 22.18%, and R&D expense ratio at 36.40% [2]. - The management expense ratio saw a significant decline due to the production commencement of a subsidiary, which reduced related costs in the management expenses [1][2]. Market Dynamics - The company’s coronary products have benefited from the national centralized procurement policy, leading to increased sales volumes and improved profitability [1]. - The new drug-eluting stent's follow-up results from clinical trials have validated its advantages, which is expected to accelerate its registration process in international markets [1][2].