MYL(600993) Huajing Securities·2024-11-22 02:37Investment Rating - The report gives a "Buy" rating for the company with a target price of RMB 37.49, indicating a potential upside of 50% from the current price of RMB 24.95 [2][3][36]. Core Insights - The company is expected to achieve a revenue and profit CAGR of 17.7% and 20.1% respectively from 2023 to 2026, driven by its strong brand influence in the anorectal health sector and effective channel management [6][7]. - The company has successfully reduced inventory levels to the lowest since 2016-2017, which is expected to facilitate a price increase cycle for its hemorrhoid treatment products [7][30]. - The healthcare service segment is seen as a crucial part of the company's strategy to expand its anorectal health ecosystem, although growth may be slow due to industry policies [8][31]. Financial Overview - The company reported a revenue of RMB 3,532 million in 2022, with projections of RMB 3,853 million in 2024 and RMB 4,484 million in 2025, reflecting a positive growth trajectory [9]. - The expected EPS for 2024, 2025, and 2026 are RMB 1.33, RMB 1.59, and RMB 1.78 respectively, indicating a steady increase in profitability [3][9]. - The company’s market capitalization is approximately USD 1.485 billion, with a current share count of 431 million [3]. Business Segments - The company's pharmaceutical segment, particularly hemorrhoid treatments, accounts for over 70% of its pharmaceutical revenue, highlighting its market leadership [7][29]. - The health products segment, which includes eye care and skincare, is projected to grow at a CAGR of 34.8% from 2023 to 2026, driven by product innovation [7][30]. - The medical services segment, while facing growth challenges, is expected to expand gradually as the company continues to develop its diagnostic and treatment centers [8][31]. Market Position - The company has established itself as a leading brand in the hemorrhoid treatment market, with a significant market share and a reputation for high-quality products [7][55]. - The hemorrhoid treatment market in China is projected to grow from RMB 49.73 billion in 2022 to RMB 74.75 billion by 2028, with a CAGR of 7.0% from 2023 to 2028 [44]. - The company’s pricing strategy has positioned it favorably against competitors, allowing for potential price increases in the future [64][70].