Endovastec(688016) Huaan Securities·2024-11-21 07:35Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The report highlights significant pressure in the domestic market due to price adjustments affecting the sales of covered stents, while overseas revenue is expected to grow [2][4] - The company has achieved a revenue of 9.70 billion yuan for the first nine months of 2024, representing a year-on-year increase of 9.13%, with a net profit attributable to the parent company of 5.53 billion yuan, up 42.46% year-on-year [2] - The report anticipates that the company's revenue will continue to grow, projecting revenues of 12.47 billion yuan, 13.54 billion yuan, and 15.99 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 4.89 billion yuan, 5.47 billion yuan, and 6.26 billion yuan [2][6] Summary by Sections Financial Performance - The company reported a revenue of 1.82 billion yuan in Q3 2024, a decline of 31.65% year-on-year, primarily due to policy impacts [2] - The gross profit margin is projected to decrease from 76.5% in 2023 to 70.5% by 2026 [7] - The net profit attributable to the parent company is expected to show a slight decline in 2024, with a forecast of 489 million yuan, before increasing to 547 million yuan in 2025 and 626 million yuan in 2026 [4][6] Market Outlook - The report indicates that the company is experiencing significant pressure in the domestic market due to price adjustments and competitive bidding policies, while the overseas market is expected to see rapid growth [2][4] - The company has made strategic acquisitions and is expanding its market presence in Europe, Japan, and the United States, with overseas revenue growth of 11% year-on-year [2][4] Valuation Metrics - The report provides a forecast for the company's earnings per share (EPS) to be 3.97 yuan in 2024, increasing to 5.08 yuan by 2026 [6][7] - The price-to-earnings (P/E) ratio is projected to decrease from 28.58 in 2023 to 21.43 by 2026, indicating a potential increase in valuation attractiveness over time [7]