Xiangyu Medical(SH:688626) Huaan Securities·2025-05-07 10:00Investment Rating - Investment rating: Buy (maintained) [2][8] Core Views - The company is facing short-term pressure on performance in 2024, but is increasing R&D investment to build long-term advantages [2][6] - The company reported a revenue of 744 million yuan in 2024, a slight decrease of 0.17% year-on-year, and a net profit attributable to shareholders of 103 million yuan, down 54.68% year-on-year [6][9] - The company is focusing on the rehabilitation sector, which has significant long-term potential, while experiencing short-term profit pressure due to rising expense ratios [6][9] Financial Performance Summary - 2024 revenue: 744 million yuan (yoy -0.17%); net profit: 103 million yuan (yoy -54.68%); non-recurring net profit: 89.97 million yuan (yoy -55.90%) [6][11] - Q4 2024 revenue: 237 million yuan (yoy +16.74%); net profit: 29.53 million yuan (yoy -38.45%); non-recurring net profit: 25.54 million yuan (yoy -35.06%) [6][11] - Q1 2025 revenue: 186 million yuan (yoy +10.02%); net profit: 22.95 million yuan (yoy -41.26%); non-recurring net profit: 18.71 million yuan (yoy -48.72%) [6][11] Expense and Profitability Metrics - Sales expense ratio: 28.91% (yoy +6.10pct); management expense ratio: 8.10% (yoy +2.60pct); R&D expense ratio: 20.45% (yoy +6.12pct) [6][9] - Gross margin: 67.42%, down 1.20 pct year-on-year; net margin: 13.83%, down 16.82 pct year-on-year [6][9] R&D Investment and Future Outlook - R&D investment in 2024 was 152 million yuan, an increase of 42.41% year-on-year, accounting for 20.45% of total revenue [6][9] - The company has established multiple R&D centers and is focusing on advanced technologies such as brain-machine interfaces and rehabilitation robotics [7][9] - Revenue projections for 2025-2027 are 848 million yuan, 972 million yuan, and 1.121 billion yuan, with growth rates of 14.1%, 14.6%, and 15.3% respectively [8][11] Earnings Per Share and Valuation - Expected EPS for 2025-2027: 0.94 yuan, 1.21 yuan, and 1.57 yuan, with corresponding P/E ratios of 38x, 29x, and 23x [9][11]