Zhende Medical(SH:603301) Huachuang Securities·2025-05-14 05:45Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][23]. Core Insights - The company reported a revenue of 4.264 billion yuan in 2024, reflecting a growth of 3.32%, while the net profit attributable to shareholders increased significantly by 94.14% to 385 million yuan [2][4]. - In Q1 2025, the company achieved a revenue of 999.2 million yuan, a growth of 2.87%, but the net profit decreased by 30.19% to 51 million yuan [2][4]. - The company has expanded its distribution channels, covering nearly 9,000 hospitals across China and achieving a 99% coverage rate in the top 100 retail pharmacy chains [8]. Financial Performance Summary - 2024 Financials: Total revenue was 4.264 billion yuan, with a net profit of 385 million yuan. The core business, excluding isolation protective products, saw a revenue increase of 15.80% [4][8]. - 2025 Projections: Expected revenue growth of 12.6% to 4.8 billion yuan, with net profit projected to reach 439 million yuan, a 14% increase [4][9]. - Earnings Per Share (EPS): Projected EPS for 2025 is 1.65 yuan, with a price-to-earnings (P/E) ratio of 12 [4][9]. Market Expansion - The company has made significant strides in both domestic and international markets, with domestic revenue from core business growing by 18.08% and overseas revenue increasing by 14.64% [8]. - The company has established an international marketing center and is penetrating markets in Southeast Asia, the Middle East, North America, and South America [8]. Investment Recommendations - The report adjusts the net profit forecast for 2025-2027 to 440 million, 510 million, and 590 million yuan respectively, with corresponding P/E ratios of 12, 10, and 9 [8][9]. - A discounted cash flow (DCF) model estimates the company's overall valuation at 7.5 billion yuan, leading to a target price of approximately 28 yuan per share [8].