Lepu Medical(300003) 东方证券·2024-12-09 02:31Investment Rating - The report initiates coverage on Lepu Medical with a "Buy" rating, setting a target price of CNY 15.0 based on a 20x P/E multiple for 2025 [2] Core Views - Lepu Medical has evolved from a single stent manufacturer to a comprehensive "medical device + pharmaceutical + services" platform, with its core businesses being medical devices (53.6% of revenue) and pharmaceuticals (30.9% of revenue) [1] - The company has successfully navigated the impact of centralized procurement (集采) on its core products, including coronary stents and key drugs like Clopidogrel and Atorvastatin Calcium Tablets, with the effects of procurement policies gradually diminishing [1] - Lepu Medical is heavily investing in R&D, with innovative products in both medical devices (e.g., bioabsorbable stents, drug-coated balloons) and pharmaceuticals (e.g., GLP-1RAs for diabetes and weight loss) becoming new growth drivers [1] Financial Performance - For the first three quarters of 2024, Lepu Medical reported revenue of CNY 4.79 billion (-23.6% YoY) and net profit attributable to shareholders of CNY 800 million (-40.7% YoY) [1] - The company's revenue is expected to grow from CNY 6.67 billion in 2024E to CNY 8.68 billion in 2026E, with net profit increasing from CNY 1.09 billion to CNY 1.69 billion over the same period [4] - Gross margin is projected to remain stable at around 64-65%, while net margin is expected to improve from 16.3% in 2024E to 19.5% in 2026E [4] Medical Devices Segment - Lepu Medical is a leading player in cardiovascular medical devices, with a strong presence in coronary intervention, structural heart disease, and peripheral vascular intervention [24] - The company has a diversified product portfolio, including drug-eluting stents, bioabsorbable stents, drug-coated balloons, and intravascular lithotripsy (IVL) devices [49] - Despite the impact of centralized procurement on coronary stents, Lepu Medical has maintained its market position, with its stent products accounting for 23% of the market in 2019 [70] - The company is focusing on innovative products such as drug-coated balloons, bioabsorbable stents, and IVL devices to drive future growth [87][107] Pharmaceuticals Segment - Lepu Medical's pharmaceutical business is centered around cardiovascular drugs, with key products like Clopidogrel and Atorvastatin Calcium Tablets [1] - The company is also investing in the development of GLP-1RAs for diabetes and weight loss, with its triple-target GLP-1RA being the second globally, only behind Eli Lilly's Retatrutide [1] Services and Health Management - Lepu Medical is expanding into services and health management, including cardiovascular specialty hospitals, medical diagnostic laboratories, and AI-based health monitoring products [26] - The company has launched products like the "Jingmou VENTURA" orthokeratology lens and is diversifying into ophthalmology and dermatology [1]