Sinocare(300298) 东吴证券·2024-12-17 05:28Investment Rating - The report maintains a "Buy" rating for Sinocare (300298) [1] Core Views - Sinocare's new Continuous Glucose Monitoring (CGM) system has obtained medical device registration, enhancing product competitiveness [2] - The CGM system features third-generation direct electron transfer technology, offering high accuracy and stability, catering to both home and clinical settings [3] - The company has established a partnership with A Menarini Diagnostics S r l, a leading European diagnostics company, which is expected to boost Sinocare's market presence in Europe [4] - Sinocare's CGM product, "Sinocare AiKan," has been approved in multiple regions including China, Indonesia, and the EU, with potential FDA approval expected by Q3 2025 [4] - The company is projected to achieve significant revenue and net profit growth from 2024 to 2026, with revenue expected to reach 4 63 billion, 5 29 billion, and 6 09 billion yuan respectively, and net profit projected at 412 million, 524 million, and 622 million yuan [5] Financial Projections - Revenue for 2024, 2025, and 2026 is forecasted at 4 63 billion, 5 29 billion, and 6 09 billion yuan, with year-over-year growth rates of 14 06%, 14 22%, and 15 23% respectively [1] - Net profit attributable to the parent company is expected to be 412 million, 524 million, and 622 million yuan for 2024, 2025, and 2026, with growth rates of 44 96%, 27 05%, and 18 68% respectively [1] - EPS for 2024, 2025, and 2026 is projected at 0 73, 0 93, and 1 10 yuan per share, with corresponding P/E ratios of 36 97, 29 10, and 24 52 [1] Market and Product Development - Sinocare's CGM system is designed for both home and clinical use, with usage durations of up to 15 days and 8 days respectively [2] - The company's CGM product has been approved in multiple regions, including China, Indonesia, and the EU, and is expected to achieve FDA approval by Q3 2025 [4] - The partnership with A Menarini Diagnostics S r l is anticipated to enhance Sinocare's strategic positioning in the European market [4] Financial Metrics - The company's gross margin is expected to improve from 54 06% in 2023 to 56 89% in 2026 [12] - ROE is projected to increase from 9 24% in 2023 to 13 56% in 2026 [12] - The company's P/B ratio is forecasted to decrease from 5 16 in 2023 to 3 42 in 2026 [12] Valuation - The current P/E ratio is 53 59, with projected P/E ratios of 36 97, 29 10, and 24 52 for 2024, 2025, and 2026 respectively [1] - The company's market capitalization is 15 24 billion yuan, with a circulating A-share market value of 12 30 billion yuan [8]