ANDON HEALTH(002432) 广发证券·2025-01-02 03:00Investment Rating - The report assigns a "Buy" rating to the company with a target price of 54.33 CNY per share, based on an 18x PE valuation for 2024 [1][2]. Core Insights - The company has established a strong brand presence in the U.S. market through its iHealth brand, particularly in home health monitoring devices, which has led to significant revenue growth [4][36]. - The company is expected to see a recovery in profitability driven by new product launches and the stabilization of its COVID-19 testing products, which have become mainstream [58][59]. - The home medical device market is experiencing a shift towards more personalized and intelligent health monitoring solutions, creating new opportunities for growth [33][61]. Summary by Sections Company Overview - The company, originally focused on electronic blood pressure monitors, has extensive experience in overseas markets and has successfully expanded its product offerings [20][24]. - The iHealth brand has gained significant traction in the U.S. market, particularly during the COVID-19 pandemic, leading to a substantial increase in overseas revenue [52][70]. Market Trends - The home medical device market is witnessing a trend of increased consumer adoption, driven by the need for convenient and easy-to-use health monitoring solutions [61][62]. - The demand for home diagnostic devices has surged, particularly for products like blood pressure monitors and glucose meters, as consumers become more health-conscious [33][61]. Financial Projections - The company forecasts a recovery in net profit, with expected figures of 1.481 billion CNY, 1.565 billion CNY, and 1.671 billion CNY for 2024, 2025, and 2026 respectively [2][37]. - Earnings per share (EPS) are projected to be 3.02 CNY, 3.19 CNY, and 3.41 CNY for the same years, indicating a positive growth trajectory [2][37]. Product Development and Strategy - The company has successfully launched new products, including a COVID-19 and flu combination test, which has received emergency use authorization in the U.S. [36][70]. - The diabetes care segment, particularly the O+O model, is showing promising growth, with significant partnerships established in the U.S. [36][70]. Competitive Position - The company has built a competitive edge in the U.S. market through its established brand and product offerings, which are well-positioned to meet ongoing health monitoring needs [36][70]. - The strategic focus on high-margin products, such as the new combination tests, is expected to enhance overall profitability [58][59].