Winning Health(300253) HTSC·2025-04-21 01:35Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 11.48 RMB [6][7]. Core Views - The company reported a significant decline in revenue and net profit for 2024, with revenue at 2.782 billion RMB, down 12.05% year-on-year, and a net profit of 88 million RMB, down 75.45% year-on-year. The decline is attributed to delayed customer demand, slow bidding processes, and the ongoing upgrade of the new product WiNEX [1][2]. - Despite the current challenges, the company is expected to see a recovery in business growth driven by accelerated AI demand in hospitals in 2025, leading to a positive outlook [1][5]. - The company has strengthened its cost control capabilities, resulting in improved cash flow, with operating cash flow reaching 408 million RMB in 2024, up from 185 million RMB in the previous year [2][5]. Summary by Sections Financial Performance - In 2024, the company's gross margin was 41.68%, a decrease of 3.32 percentage points. The software and service business generated revenue of 2.152 billion RMB, down 9.25%, with a gross margin of 50.10% [2]. - The internet healthcare business saw revenue growth of 7.83%, totaling 337 million RMB, with a gross margin of 17.05% [2]. - The company expects net profits for 2025 to be 423 million RMB, reflecting a significant recovery from the previous year's losses [5]. AI and Market Position - The company has been proactive in AI healthcare, launching the WiNGPT model and integrating it into the WiNEX product, which covers over 100 clinical application scenarios [3][4]. - The company serves over 6,000 healthcare institutions, including more than 400 tertiary hospitals, maintaining a leading market share in China's hospital core system market from 2020 to 2023 [4]. Valuation and Forecast - The company is projected to achieve net profits of 4.23 billion RMB in 2025, with a target price set at 11.48 RMB, reflecting a price-to-earnings ratio of 60.0 times for 2025 [5][6]. - The expected revenue growth for 2025 is 3.113 billion RMB, representing an 11.89% increase from 2024 [5].