Lepu Medical(SZ:300003) Huafu Securities·2024-11-13 10:46Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark within the next six months [10]. Core Insights - The company reported a revenue of 4.785 billion yuan for the first three quarters of 2024, a year-on-year decrease of 23.55%, with a net profit attributable to shareholders of 803 million yuan, down 40.70% year-on-year [1][2]. - The medical device segment achieved a revenue of 2.563 billion yuan, a decline of 10.48% year-on-year, while the cardiovascular intervention business saw a revenue increase of 16.10% [2]. - The company is expected to see a turnaround as the impact of channel adjustments in the pharmaceutical segment is nearing its end, with new formulations set to launch [3][4]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 1.402 billion yuan, down 28.41% year-on-year, and a net profit of 105 million yuan, down 73.12% year-on-year [1]. - The medical services and health management segment generated a revenue of 746 million yuan, a decrease of 23.87% year-on-year, with the Hefei Cardiovascular Hospital contributing 120 million yuan, up 15.25% year-on-year [2]. - The company anticipates a revenue CAGR of 3.1% from 2023 to 2026, with a net profit CAGR of 13.3% during the same period [3][4]. Product Development and Pipeline - The company has received approvals for key products, including the ThorCrack® peripheral vascular shockwave balloon and the NeoGlu®01 non-invasive blood glucose meter, which are expected to enhance its product line and market reach [3]. - The TAVR device is anticipated to receive approval in Q4 2024, which could further drive revenue growth in innovative devices [3]. - The company is progressing well with its drug pipeline, with candidates MWN 101, MWN 105, and MWN 109 expected to advance in clinical trials [3].