Endovastec(688016) 浙商证券·2024-12-08 05:23Investment Rating - Maintain "Overweight" rating [7][8] Core Views - The company disclosed a 2024 equity incentive plan, with profit targets for 2025-2027 set at 600/720/864 million yuan respectively, reflecting confidence in future profit growth [3][4] - Despite short-term impacts from price reductions in 2024, long-term growth potential remains strong due to new product launches and overseas channel expansion [5] - Profit margins are expected to remain relatively high from 2024 to 2026, despite a slight decline in gross margin due to terminal price reductions [6] Growth Potential - Terminal price reductions may have a short-term impact on H2 2024 performance, but are expected to boost product penetration rates in the long run [5] - Overseas revenue grew over 65% in H1 2024, with products now covering 34 countries and regions, up from 31 at the end of 2023 [5] - Continuous product innovation and iteration, with 8 products in the green channel as of H1 2024, are expected to drive long-term revenue growth [5] Profitability - Gross margin in Q3 2024 was 70.85%, down 5.45 percentage points year-on-year, but is expected to remain relatively high due to strong product innovation [6] - Net profit margin is expected to remain relatively high from 2024 to 2026, despite a slight decline due to factors such as gross margin reduction and short-term channel adjustments [6] Financial Forecasts - Revenue for 2024-2026 is forecasted to be 1.245/1.535/1.904 billion yuan, with year-on-year growth rates of 4.86%, 23.30%, and 24.04% respectively [7] - Net profit attributable to the parent company for 2024-2026 is forecasted to be 483.49/603.40/745.43 million yuan, with year-on-year growth rates of -1.82%, 24.80%, and 23.54% respectively [7] - EPS for 2024-2026 is forecasted to be 3.92/4.90/6.05 yuan, with a 2025 PE ratio of 23x [7]