Sinocare(SZ:300298) HTSC·2025-04-29 02:33Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 29.64 RMB [6][7]. Core Views - The company achieved a revenue of 10.42 million RMB and a net profit of 0.72 million RMB in Q1 2025, reflecting a year-over-year growth of 2.8% in revenue but a decline of 10.9% in net profit. The profit decline is attributed to the capacity optimization work at the overseas subsidiary PTS, which is expected to return to normal operations in the first half of 2025, leading to improved profit growth in subsequent quarters [1][2]. - The core business of BGM is performing well, with steady growth expected in 2025 due to strong demand for blood glucose monitoring systems among diabetes patients. The overseas subsidiary PTS is also anticipated to achieve significant profitability in 2025 [2][3]. - The CGM products are seeing positive sales growth domestically, with expectations of reaching sales of 4-6 billion RMB in 2025. The company is actively pursuing market access and commercialization in the EU and is in the FDA registration phase in the US, with approval expected in the second half of 2025 [3][4]. Financial Forecast and Valuation - The earnings per share (EPS) forecast for 2025 is 0.78 RMB, with projected EPS of 0.93 RMB in 2026 and 1.09 RMB in 2027. The company is valued at a price-to-earnings (PE) ratio of 38x for 2025, compared to the industry average of 28x [4][10]. - Revenue projections for the company are 4.9 billion RMB in 2025, with a year-over-year growth rate of 10.27%. The net profit is expected to reach 440.13 million RMB in 2025, reflecting a significant increase of 34.89% compared to the previous year [10][17].