Balance Medical(SH:688198) Orient Securities·2025-05-21 13:49Investment Rating - The report maintains a "Buy" rating for the company with a target price of 126.56 CNY [3][2] Core Insights - The company has shown robust revenue growth, with a 2024 revenue forecast of 5.02 billion CNY, representing a year-on-year increase of 35.41%. The net profit attributable to the parent company is projected at 1.46 billion CNY, up 27.02% year-on-year [6][2] - The first quarter of 2025 saw a significant revenue increase to 1.00 billion CNY, a 31.30% year-on-year growth, with net profit soaring by 290.69% to 0.33 billion CNY, attributed to the completion of clinical trials and a decrease in R&D expenses [6][2] - The company is advancing in three major business segments, with new product sales rapidly increasing, particularly in the heart valve replacement and repair segment, which achieved a revenue of 2.29 billion CNY, up 64.28% year-on-year [6][2] Financial Summary - Revenue projections for 2023A to 2027E are as follows: 371 million CNY (2023A), 502 million CNY (2024A), 681 million CNY (2025E), 898 million CNY (2026E), and 1,136 million CNY (2027E) [2][8] - The company’s gross margin is expected to be 88.34% in 2024, with a slight decrease from previous years due to new product costs [6][2] - The net profit margin is projected to be 29.2% in 2024, with a net profit attributable to the parent company of 1.46 billion CNY [2][8] R&D and Product Development - R&D investment reached 1.51 billion CNY in 2024, accounting for 30.17% of revenue, with significant progress in product registrations, including three new products [6][2] - The company is expected to continue expanding its product lineup, with several new products in the pipeline for registration in 2025 [6][2]