Investment Rating - The report maintains a "BUY" rating for INT Medical, indicating a potential return of over 15% over the next 12 months [17]. Core Insights - INT Medical's revenue for 2024 grew by 13.2% YoY to RMB 852 million, which was 13% below the analyst's estimate, primarily due to pressures on its CDMO business from VBP and increased competition [1]. - The company's attributable net profit increased by 22.7% YoY to RMB 192 million, with a net profit margin improvement of 1.7 percentage points [1]. - The target price is set at HK$33.68, reflecting a 25% upside from the current price of HK$26.95 [3]. Financial Performance Summary - Revenue projections for FY25E, FY26E, and FY27E are RMB 1,025 million, RMB 1,225 million, and RMB 1,398 million, respectively, with YoY growth rates of 20.4%, 19.5%, and 14.1% [2]. - Attributable net profit for FY25E, FY26E, and FY27E is expected to be RMB 206 million, RMB 245 million, and RMB 280 million, with YoY growth rates of 7.5%, 18.7%, and 14.4% [2]. - The gross margin improved to 63.1% in 2024, up 5 percentage points, driven by enhanced capacity utilization and increased automation [7]. Market and Operational Insights - INT Medical expanded its overseas customer base to 281, covering over 86 countries and regions, with overseas revenue growing by 24.2% YoY to RMB 253 million, representing 29.6% of total sales [7]. - The company has implemented cost-reduction and efficiency-enhancement measures, which are expected to stabilize gross margins despite the negative impact of VBP [7]. - The report anticipates solid revenue growth for INT Medical in 2025E, with revenue and attributable net profit projected to increase by 20.4% YoY and 7.5% YoY, respectively [7].
瑛泰医疗：Solid growth with margin improvement-20250320