Sinocare(SZ:300298) HTSC·2025-04-29 04:10Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 29.64 [6][7]. Core Views - The company reported a revenue of RMB 10.42 million and a net profit attributable to the parent company of RMB 0.72 million in Q1 2025, reflecting a year-on-year growth of 2.8% in revenue but a decline of 10.9% in net profit [1]. - The decline in profit is attributed to the temporary 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]. - The company’s core business in BGM is performing well, and the commercialization efforts for CGM both domestically and internationally are progressing positively, indicating a favorable outlook for 2025 [1][2]. Summary by Sections Revenue and Profitability - The company’s revenue is projected to grow steadily, with expectations of reaching RMB 4.9 billion in 2025, representing a 10.27% increase from the previous year [10]. - The net profit attributable to the parent company is forecasted to be RMB 440.13 million in 2025, showing a significant year-on-year growth of 34.89% [10]. Business Segments - The BGM business is expected to see stable growth due to the clear demand for blood glucose monitoring among diabetes patients and the company's leading brand strength in the industry [2]. - The PTS segment is anticipated to achieve profitability in 2025 as capacity optimization efforts conclude and market influence continues to grow [2]. - The Trividia segment is also expected to be profitable in 2025, driven by ongoing cost reduction and efficiency improvement initiatives [2]. CGM Commercialization - The CGM products are showing strong sales performance domestically, with an estimated sales revenue of approximately RMB 100 million in Q1 2025, and expectations to reach RMB 400-600 million in total sales for 2025 [3]. - In the European market, the company is actively pursuing medical insurance access and commercial promotion, with positive progress expected in major countries [3]. - The company is in the FDA registration phase for its CGM products in the U.S., with expectations to receive approval in the second half of 2025 [3]. Valuation - The company is valued at a PE ratio of 38x for 2025, compared to the industry average of 28x, reflecting its position as a leader in the domestic blood glucose monitoring market [4]. - The target price remains unchanged at RMB 29.64, indicating potential upside from the current market price [4].