Eyebright Medical(SH:688050) Haitong Securities·2024-11-12 09:17Investment Rating - The investment rating for the company is "Outperform the Market" [1] Core Views - The company reported a significant increase in revenue, with Q3 2024 revenue reaching 390 million yuan, a year-on-year growth of 49.11%, and a net profit of 110 million yuan, up 23.38% year-on-year [4] - For the first three quarters of 2024, the company achieved a revenue of 1.075 billion yuan, representing a year-on-year increase of 60.94%, and a net profit of 318 million yuan, up 26.04% year-on-year [4] - The growth in revenue is primarily driven by the vision care business, particularly the contact lens segment, while the company has effectively controlled costs, leading to improved profitability [4][5] Financial Performance Summary - The company expects to achieve earnings per share (EPS) of 2.09, 2.68, and 3.46 yuan for the years 2024, 2025, and 2026 respectively, with net profit growth rates of 30.1%, 28.6%, and 28.9% [5][10] - Revenue projections for 2024, 2025, and 2026 are 1.463 billion yuan, 1.908 billion yuan, and 2.473 billion yuan, respectively, with year-on-year growth rates of 53.8%, 30.4%, and 29.7% [7][10] - The gross profit margin is expected to decline from 76.0% in 2023 to 61.6% by 2026, reflecting changes in the product mix and pricing pressures [10][11] Business Segment Analysis - The artificial lens segment is projected to grow from 630 million yuan in 2024 to 880 million yuan in 2026, while the contact lens segment is expected to increase from 430 million yuan in 2024 to 900 million yuan in 2026 [8] - The company has seen improvements in profitability within its vision care business, with the Tianyan factory achieving profitability, although the Youkang segment has not yet reached profitability [5][8] Valuation - The company is assigned a price-to-earnings (P/E) ratio range of 43-53 for 2024, translating to a reasonable value range of 89.72 to 110.58 yuan per share [5] - The price-to-sales (P/S) ratio is estimated at 12-15 for 2024, corresponding to a reasonable value range of 92.64 to 115.80 yuan per share [5]