TC Medical(600763)2025-05-15 11:00Investment Rating - The report maintains an "Outperform" rating for the company with a target price of RMB 46.67, compared to the current price of RMB 40.13 [1][8]. Core Insights - In 2024, the company is projected to achieve revenue of RMB 2.87 billion (+0.96%) and a net profit attributable to shareholders of RMB 501 million (+0.20%). The recurring net profit attributable to shareholders is expected to be RMB 496 million (+3.18%) [8]. - The company is focusing on expanding its dental services through a "regional main hospital + branch" model, having completed five major clusters in Zhejiang province. The revenue from these clusters in 2024 is expected to be RMB 548 million, RMB 382 million, and RMB 184 million respectively [8]. - The company is shifting its strategy for provincial expansion from traditional self-built models to a combination of acquisitions and asset-light franchising, aiming for a national network at lower costs and higher efficiency. Revenue from outside the province is projected to be RMB 277 million (+4.83%) in 2024 [8]. Financial Summary - The company’s financial performance shows a steady increase in revenue and net profit over the forecast period. Revenue is expected to grow from RMB 2.87 billion in 2024 to RMB 3.40 billion by 2027, with net profit increasing from RMB 501 million to RMB 665 million in the same period [5][8]. - The earnings per share (EPS) forecast has been adjusted to RMB 1.26 for 2025, RMB 1.36 for 2026, and a new forecast of RMB 1.49 for 2027 [8]. - The company’s medical service revenue is expected to reach RMB 2.73 billion in 2024, with significant contributions from dental implants, orthodontics, pediatrics, restoration, and general services [8].