Lepu Medical(SZ:300003) Orient Securities·2025-04-30 05:52Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 12.42 CNY based on a 23x P/E ratio for 2025 [2][6]. Core Insights - The company is expected to recover its performance throughout the year, with a projected EPS of 0.54 CNY for 2025, down from previous estimates of 0.75 CNY [2][10]. - The company’s revenue for 2024 is forecasted at 6.1 billion CNY, reflecting a year-on-year decline of 23.5%, but is expected to grow by 12.0% in 2025 [4][10]. - The medical device segment showed resilience, with structural heart disease revenue increasing by 44.0% in 2024, while the overall medical device revenue decreased by 9.5% [10]. Financial Performance Summary - 2023A: Revenue of 7.98 billion CNY, net profit of 1.26 billion CNY, and EPS of 0.67 CNY. - 2024A: Revenue expected to drop to 6.1 billion CNY, net profit to 247 million CNY, and EPS to 0.13 CNY. - 2025E: Revenue projected to recover to 6.83 billion CNY, net profit to 1.01 billion CNY, and EPS to 0.54 CNY [4][10]. - The gross margin is expected to stabilize around 62.2% in 2025, with a net margin of 14.8% [4][10]. Business Strategy and Outlook - The company focuses on innovation, consumer engagement, and internationalization, particularly in the cardiovascular sector [10]. - New product approvals in the cardiovascular intervention space and ongoing clinical trials for innovative drugs indicate a strong pipeline for future growth [10].