Sinocare(SZ:300298) Huaxin Securities·2025-06-29 15:13Investment Rating - The report assigns a "Buy" investment rating for the company, marking its first coverage [2][7]. Core Insights - The company's performance met expectations, with a revenue of 4.443 billion yuan in 2024, reflecting a year-on-year growth of 9.47%, and a net profit of 326 million yuan, up 14.73% [4]. - In Q1 2025, the company reported a revenue of 1.042 billion yuan, a 2.76% increase year-on-year, but a net profit decline of 10.90% [4]. - The company holds nearly 50% market share in the retail blood glucose product market, with over 22 million users and partnerships with more than 4,000 distributors and nearly 600 chain pharmacies [4]. - The company is actively enhancing its online sales strategy, integrating online and offline operations to strengthen its market position [4]. - The international expansion of the Continuous Glucose Monitoring (CGM) business is accelerating, with a distribution agreement covering over 20 countries signed in November 2024 [5]. - The second-generation CGM product received Class III NMPA registration, showcasing improved accuracy and stability compared to the first generation [6]. - Revenue forecasts for 2025-2027 are projected at 4.887 billion, 5.572 billion, and 6.129 billion yuan, respectively, with corresponding EPS of 0.71, 0.94, and 1.14 yuan [7][9]. Summary by Sections Financial Performance - 2024 revenue: 4.443 billion yuan, 9.47% growth [4] - Q1 2025 revenue: 1.042 billion yuan, 2.76% growth; net profit down 10.90% [4] - 2025-2027 revenue projections: 4.887 billion, 5.572 billion, 6.129 billion yuan [7][9] Market Position - Holds nearly 50% market share in blood glucose products [4] - Over 22 million users and partnerships with 4,000+ distributors [4] - Strong online sales integration across 20+ e-commerce platforms [4] Product Development - Second-generation CGM product received Class III NMPA registration [6] - Improved accuracy with MARD value reduced to 8.71% [6] International Expansion - Distribution agreement signed for CGM products in 20+ countries [5] - FDA 510(k) application for CGM product in substantive review phase [5] Earnings Forecast - EPS projections for 2025-2027: 0.71, 0.94, 1.14 yuan [7][9] - PE ratios for 2025-2027: 30.9, 23.4, 19.2 [7][9]