Winner Medical(SZ:300888) Southwest Securities·2025-06-10 05:45Investment Rating - The report maintains a "Buy" rating for the company, citing strong growth potential in both its medical and consumer segments [4]. Core Views - The company is positioned for a growth year, driven by a dual engine of medical and consumer sectors, with a focus on brand development and market expansion [4]. - The medical segment is expected to benefit from both organic growth and acquisitions, while the consumer segment is leveraging its brand strength to capture market share [4][27]. - The company has implemented a stock incentive plan to align employee interests with long-term growth targets, reflecting confidence in future performance [18]. Summary by Sections Company Overview - The company, established in 1991, operates through two main brands: "Winner" for medical products and "Purcotton" for consumer goods, achieving synergy between the two sectors [7][45]. - It has a comprehensive product matrix in the medical field, including traditional wound care, high-end dressings, and health personal care products, while the consumer segment focuses on cotton-based products [7][46]. Medical Segment - The medical segment is focused on consumables, with a robust product offering and a strategy that includes both internal growth and external acquisitions [4][50]. - In 2024, the medical segment generated revenue of 39.1 billion yuan, a year-on-year increase of 1.1%, with significant contributions from the acquisition of GRI [27][29]. - The market for medical consumables is projected to grow steadily, with a focus on low-value consumables expected to see the most significant growth [50][54]. Consumer Segment - The consumer segment has shown strong growth, with revenue increasing from 13.3 billion yuan in 2016 to 49.9 billion yuan in 2024, reflecting a compound annual growth rate (CAGR) of 25.6% [4][27]. - Key products in this segment, such as cotton wipes and sanitary products, have demonstrated robust sales growth, with the segment contributing 55.6% to total revenue in 2024 [26][27]. - The company is enhancing its brand presence and market share through product innovation and channel expansion [4][27]. Financial Forecast and Valuation - The company is projected to achieve net profits of 10.1 billion yuan, 12.7 billion yuan, and 15.6 billion yuan for the years 2025 to 2027, representing year-on-year growth rates of 45.2%, 25.9%, and 22.9% respectively [4][27]. - The report suggests that the company's strong brand power in consumer products and the recovery of the medical segment will drive future growth [4][27]. Innovation and R&D - The company has a strong focus on innovation, holding over 1,000 patents in the medical field and actively engaging in partnerships with academic institutions for research and development [40][43].