SHINVA(600587) Haitong Securities International·2025-05-15 08:35Investment Rating - The investment rating for the company is "Outperform" with a target price of 24.29 RMB, compared to the current price of 14.71 RMB [1]. Core Insights - The company aims to strengthen its competitiveness in the medical equipment market through innovation and continuous divestment of non-core businesses, while also expanding its overseas market presence [1][8]. - In 2024, the company is projected to achieve revenue of 10.02 billion RMB (+0.1%) and a net profit attributable to shareholders of 692 million RMB (+5.8%) [8]. - The company is focusing on manufacturing products in the medical equipment and pharmaceutical equipment sectors, with these segments accounting for 58.93% of revenue in 2024 [8]. Financial Summary - Revenue and Profit Forecast: - 2023A: Revenue 10,012 million RMB, Net Profit 654 million RMB - 2024A: Revenue 10,021 million RMB, Net Profit 692 million RMB - 2025E: Revenue 10,664 million RMB, Net Profit 819 million RMB - 2026E: Revenue 11,337 million RMB, Net Profit 967 million RMB - 2027E: Revenue 12,044 million RMB, Net Profit 1,083 million RMB [3][5]. - Earnings Per Share (EPS) Forecast: - 2024A: 1.14 RMB - 2025E: 1.35 RMB - 2026E: 1.59 RMB - 2027E: 1.79 RMB [3][5]. - Key Financial Ratios: - Return on Equity (ROE) is expected to increase from 8.9% in 2023A to 11.0% in 2027E [5]. - Price-to-Earnings (P/E) ratio is projected to decrease from 13.65 in 2023A to 8.24 in 2027E [5]. Business Strategy - The company is adjusting its business structure by focusing on the medical equipment and pharmaceutical equipment sectors, while also streamlining its medical services [8]. - The international business revenue is expected to reach 271 million RMB in 2024, reflecting a growth of 12.43% [8]. - The medical equipment sector is projected to generate revenue of 3.74 billion RMB in 2024, while the pharmaceutical equipment sector is expected to achieve 2.17 billion RMB, marking a year-on-year growth of 12.9% [8].