China Post Securities·2025-06-27 09:40Investment Rating - The report gives a "Buy" rating for the company [3]. Core Views - The company is expected to see significant revenue growth from 2025 to 2027, with projected revenues of CNY 5.66 billion, CNY 7.19 billion, and CNY 9.24 billion, representing year-on-year growth rates of 27.8%, 27.0%, and 28.6% respectively. Net profit attributable to the parent company is forecasted to be CNY 1.79 billion, CNY 2.26 billion, and CNY 2.89 billion for the same years, with growth rates of 32.5%, 26.3%, and 27.6% respectively [3][4]. Company Overview - The company, established in 2003, focuses on the research, development, production, and sales of medical endoscopic instruments and optical products. It integrates optical technology with various fields including medicine, industry, and laser technology [15][24]. - The company has a complete industrial chain from system design to optical processing and system integration, providing high-quality products and services for medical and optical fields [15]. Financial Performance - In 2024, the company achieved a revenue of CNY 4.43 billion, a decrease of 5.90% year-on-year, and a net profit of CNY 1.35 billion, down 7.11% year-on-year. However, in Q1 2025, the company reported a revenue of CNY 1.47 billion, a year-on-year increase of 24.86%, and a net profit of CNY 0.47 billion, up 21.45% year-on-year [18][20]. - The company's gross margin slightly improved to 64.51% in 2024, while the net margin was 30.20% [22]. Market Potential - The report highlights the significant growth potential in the fluorescence endoscope market, with the Chinese hard endoscope market nearing CNY 100 billion in 2024 and a growing domestic production rate [41][42]. - The global fluorescence endoscope market is expected to grow rapidly, with a projected compound annual growth rate of 24.3% [44]. Product Development - The company has successfully launched the new generation of fluorescence endoscopes, which are expected to drive sales growth. The N780 4K fluorescence endoscope system is anticipated to lead market sales [4][25]. - The company has established strong partnerships with major international medical device manufacturers, enhancing its market position [35].