Winner Medical(300888)2024-11-18 02:39Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 35.24 CNY per share, compared to the current price of 33.21 CNY per share [7]. Core Views - The company reported a revenue of 6.07 billion CNY for the first three quarters of 2024, reflecting a year-on-year increase of 0.99%. However, the net profit attributable to shareholders decreased by 74.25% to 553 million CNY. In Q3 alone, revenue reached 2.04 billion CNY, up 16.80% year-on-year, while net profit dropped by 88.49% to 169 million CNY. Excluding last year's one-time gain from a project, the net profit would have increased by 62.17% year-on-year [3][4]. Summary by Sections Financial Performance - For Q1-Q3 2024, the company achieved a gross margin of 48.14%, a net margin of 9.66%, and a non-recurring net margin of 7.77%, all showing slight declines compared to the previous year. In Q3, the gross margin was down by 0.04% year-on-year, while the non-recurring net margin improved by 3.05% [4]. - The company’s expenses increased due to heightened marketing efforts, with sales, management, R&D, and financial expense ratios at 25.96%, 7.71%, 3.82%, and -0.75%, respectively [4]. Business Segments - In Q3, the medical consumables segment generated 940 million CNY in revenue, a 13.1% increase year-on-year, while the All Cotton Era segment reported 1.08 billion CNY, up 20.6% year-on-year [3]. Equity Incentive Plan - The company announced an equity incentive plan on October 28, 2024, granting 7.4763 million shares at a price of 15.39 CNY per share, with performance targets set for revenue growth of 13% and 18% for 2024 and 2025, respectively [4]. Earnings Forecast - The earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 1.36 CNY, 1.80 CNY, and 2.17 CNY, respectively. The company is expected to maintain strong growth in its consumer and medical consumables segments [5].