Sinocare(300298) 华福证券·2024-12-09 02:59Investment Rating - The report maintains a "Buy" rating for the company, reflecting confidence in its growth prospects and market position [3][5] Core Views - The company has signed a 7-year exclusive distribution agreement with A Menarini Diagnostics S r l to distribute its first and second-generation CGM products in over 20 European countries and regions under a co-branding arrangement [1] - The European CGM market is the second largest globally, with a projected CAGR of 20 6% from 2020 to 2030, reaching USD 7 8 billion by 2030 [2] - The company is making progress in product improvements and FDA registration for the US market, which could further enhance its market share [2] Financial Projections - Revenue is expected to grow from CNY 4 32 billion in 2024 to CNY 5 93 billion in 2026, with year-over-year growth rates of 6%, 15%, and 19% respectively [3] - Net profit attributable to the parent company is projected to increase from CNY 330 million in 2024 to CNY 635 million in 2026, with growth rates of 16%, 55%, and 24% respectively [3] - EPS is forecasted to rise from CNY 0 59 in 2024 to CNY 1 13 in 2026 [3] Market and Industry Analysis - The European CGM market is expected to grow significantly, providing a substantial opportunity for the company to expand its presence through the new distribution agreement [2] - The company's CGM products are well-positioned to benefit from the growing demand in Europe, leveraging the strong distribution network of A Menarini Diagnostics [1][2] Product Development and Market Expansion - The company is continuously improving its product offerings, with next-generation products under review for enhanced user experience [2] - Efforts to enter the US market are ongoing, with FDA registration progressing, which could open up additional growth opportunities [2]