SWS Medical(SH:688410) Tai Ping Yang Zheng Quan·2025-06-11 10:25Investment Rating - The report gives a "Buy" rating for the company [8] Core Views - The company is a leading domestic player in blood purification equipment with a comprehensive layout across the entire industry chain, indicating a promising future [4][8] - The blood purification equipment market in China is expected to grow at a compound annual growth rate (CAGR) of 15%, driven by policy support and increasing demand for dialysis services [4][46] - The company has successfully expanded its business from blood purification equipment to a full range of dialysis services, enhancing its competitive edge [15][20] Summary by Sections 1. Company Overview - The company started with blood purification equipment and has gradually expanded into the entire dialysis industry chain, including self-manufactured consumables and medical services [15][16] - As of May 2025, the company has obtained multiple medical device registrations for its blood purification equipment, including dialysis machines and CRRT devices [16] 2. Market Potential - The market for blood purification equipment is expected to benefit from the recovery of procurement policies and equipment upgrades, with significant growth potential [4][36] - The penetration rate of ESRD patients receiving treatment in China is only 1/4 of that in Japan, indicating a large unmet demand [49] 3. Competitive Advantages - The company's blood purification devices offer a competitive price-performance ratio, with significant market share growth in both domestic and international markets [5][24] - The company has achieved a domestic market share of 16.8% in blood purification equipment, ranking first among domestic manufacturers [5][8] 4. Revenue and Profitability Forecast - The company is projected to achieve revenues of 709 million, 878 million, and 1.072 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 141 million, 186 million, and 240 million yuan [8][10] - The gross profit margin has shown an upward trend, supported by increased sales and operational efficiencies [27][29] 5. Future Growth Drivers - The company is expected to benefit from a strong recovery in equipment procurement and a wave of equipment upgrades starting in 2024, which will drive market growth [52][53] - The increasing number of dialysis centers and the rising number of patients receiving dialysis treatment will further enhance market demand [41][45]