Endovastec(SH:688016) Ping An Securities·2025-03-31 06:46Investment Rating - The report maintains a "Recommended" rating for the company [1][8]. Core Views - The company demonstrates steady operational growth, with expectations for international growth. Despite a market environment change affecting performance in the second half of the year, the overall business remains robust. The company has maintained stable growth in product admissions and implant volumes, although sales and profit growth were impacted by pricing and promotional strategy adjustments [4][8]. - The company continues to focus on technological innovation and has enhanced its integrated solutions. A total of 12 new products have been approved domestically and internationally since 2024, with significant advancements in the development of integrated solutions for aortic, peripheral vascular, and tumor diseases [5][7]. - The company is accelerating its globalization strategy, achieving nearly 100% growth in overseas sales revenue in 2024, expanding its international business into 40 countries and regions [7][8]. Financial Summary - For 2024, the company is projected to achieve revenue of 1.206 billion yuan, a year-on-year increase of 1.61%, and a net profit of 502 million yuan, up 1.96% year-on-year [3][4]. - The company’s revenue and profit forecasts for 2025-2027 have been adjusted to 5.92 billion yuan, 7.24 billion yuan, and 8.79 billion yuan respectively, reflecting the ongoing growth potential of innovative products and the rapid expansion of international business [8]. - Key financial metrics include a gross margin of 73% for 2024, with a projected decline to 67.4% by 2027, and a net profit margin of 41.6% for 2024, decreasing to 36.5% by 2027 [11]. Market Position - The company is a leading player in the domestic aortic and peripheral vascular intervention market, with a strong product lineup and increasing market share. As of the end of 2024, its products are present in over 2,500 hospitals in China [7][8]. - The company has successfully acquired Lombard Medical, enhancing its presence in the European and Japanese medical device markets, which is expected to further boost its brand influence [7][8].