Sinocare(300298) 湘财证券·2025-02-12 06:21Investment Rating - The investment rating for the company is "Accumulate" [6] Core Views - The company's continuous glucose monitoring (CGM) products are successfully expanding into European and American markets, which is expected to open a second growth curve. The approval of the second-generation CGM will enhance product competitiveness [4] - The partnership with A. MENARINI DIAGNOSTICS S.r.l. for exclusive distribution in over 20 European countries is anticipated to significantly accelerate market penetration and coverage of CGM products [1] - The CGM market in the U.S. is projected to grow, with the company leveraging its subsidiaries Trividia and PTS to enhance sales channels upon FDA approval [2] - The newly approved second-generation CGM product in China offers improved comfort and convenience, which is expected to enhance user experience and product competitiveness [3] Summary by Sections Company Overview - The company has established a seven-year distribution agreement with A. MENARINI DIAGNOSTICS S.r.l. to promote CGM products in Europe, which is the second-largest market for CGM [1] - The U.S. CGM market was valued at $2.7 billion in 2020, with a compound annual growth rate (CAGR) of 26.7% from 2015 to 2020 [2] Product Development - The second-generation CGM product has received regulatory approval in China, featuring a more user-friendly design that enhances portability and comfort [3] Financial Forecast - Revenue projections for 2024-2026 have been revised upwards to 43.33 billion, 49.00 billion, and 56.49 billion yuan respectively, with net profits adjusted to 3.64 billion, 4.67 billion, and 5.94 billion yuan [4] - The earnings per share (EPS) estimates for the same period are 0.61, 0.78, and 1.03 yuan [4] Market Position - The company is positioned to benefit from the growing CGM market in both Europe and the U.S., with strategic partnerships and product innovations enhancing its competitive edge [1][2][3]