Investment Rating - The investment rating for the company is "Buy" with a target price of 8.15 HKD [8][9]. Core Views - The company achieved a revenue of 1.346 billion RMB in 2024, representing a 23% year-over-year increase, and a net profit of 274 million RMB, which is a 50% year-over-year increase, aligning with previous profit forecasts [1]. - The growth in profit is attributed to the execution of joint replacement contracts, with a 25.8% year-over-year increase in joint business revenue, and continuous optimization of sales, management, and R&D expense ratios [1]. - For 2025, the company is expected to enter a new cycle of simultaneous volume and price increases, with a projected net profit growth rate of 23% [1]. Summary by Sections Joint Business Segment - The joint segment generated revenue of 1.134 billion RMB in 2024, up 25.8% year-over-year, primarily due to successful contract renewals and price increases for certain products [2]. - The impact of contract renewals is expected to be more pronounced in 2025, with price increases exceeding 15% for full ceramic and knee joints, and a recovery in surgical volumes anticipated [2]. Spine and Trauma Segment - The spine and trauma segment achieved revenue of 127 million RMB in 2024, a 3% year-over-year increase, with expectations for steady growth in 2025 driven by the gradual increase in volume during the contract renewal period [3]. Customization Platform - The customization platform generated revenue of 51 million RMB in 2024, a 3.5% year-over-year increase, with expectations for stable growth in 2025 due to advancements in smart devices and ongoing overseas market expansion [4]. Profit Forecast and Valuation - The company is projected to have EPS of 0.30 RMB in 2025, with a target price set at 8.15 HKD based on a 25x PE ratio for 2025 [5]. - The expected revenues for 2025 are 1.639 billion RMB, with a net profit of 338 million RMB, reflecting a 23.3% increase from 2024 [7].
爱康医疗：关节续采驱动进入量价双升新周期-20250401