Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside in the stock price [5][11]. Core Insights - The company is expected to achieve a net profit of RMB 2.7 billion in 2024, reflecting a year-over-year increase of 50.4%, which aligns with market expectations [6][8]. - Revenue for 2024 is projected to be RMB 13.5 billion, representing a year-over-year growth of 23.1% [8]. - The company anticipates significant revenue growth in the second half of 2024, with expected revenue of RMB 6.9 billion, a year-over-year increase of 54.8% [8]. - The company plans to distribute a dividend of HKD 0.072 per share [8]. Summary by Sections Company Overview - The company operates in the pharmaceutical and biotechnology sector, with a current H-share price of HKD 5.62 and a target price of HKD 7.3 [2][5]. Financial Performance - The company reported a comprehensive gross margin of 60.0% for 2024, with a net profit margin of 20.3%, an increase of 3.7 percentage points year-over-year [8]. - The revenue breakdown shows that hip joint replacement implants account for 55% of total revenue, knee joint replacement implants for 30%, spinal and trauma implants for 10%, and custom products and services for 4% [3][8]. Earnings Forecast - The company is projected to achieve net profits of RMB 3.5 billion, RMB 4.4 billion, and RMB 5.3 billion for the years 2025, 2026, and 2027, respectively, with year-over-year growth rates of 28.8%, 24.9%, and 19.4% [8][10]. - The earnings per share (EPS) are expected to be RMB 0.31, RMB 0.39, and RMB 0.47 for the same years [10]. Market Position - The company has a market share of approximately 20% in the joint replacement market and has seen an increase in contributions from tier 1 hospitals [8].
爱康医疗（01789）：2024年净利YOY+50%，符合预期，看好25H1继续快速增长