INTCO MEDICAL(SZ:300677) NORTHEAST SECURITIES·2025-07-02 05:43Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock price over the next six months [5]. Core Views - The company has announced a restricted stock incentive plan for 2025, granting 13.2431 million shares to 1,090 individuals, which represents approximately 3.94% of the total share capital at the time of the announcement. The grant price is set at 11.30 CNY per share. The performance targets for the company are set for the years 2026-2029, with revenue targets of no less than 11.26 billion, 12.28 billion, 13.28 billion, and 14.28 billion CNY, and net profit targets (excluding share-based payment expenses) of no less than 1.68 billion, 1.88 billion, 2.28 billion, and 2.68 billion CNY respectively [1][2]. - The company is expected to achieve revenue growth rates of 9.1%, 8.1%, and 7.5% for the years 2027-2029, with net profit growth rates of 11.9%, 21.3%, and 17.5% respectively, reflecting the company's confidence in future development [2]. - The glove prices have stabilized, and the company has sufficient orders. Since January 2025, the company has successfully shifted glove sales to non-U.S. markets such as Europe, South America, and the Middle East due to U.S. tariffs. The price of nitrile gloves has stabilized, and the company is operating at full capacity, with a significantly higher operating rate than its peers [2]. - The company is accelerating the construction of overseas production capacity to build a global supply system. As of now, the total glove production capacity has reached 87 billion pieces, with 56 billion nitrile gloves and 31 billion PVC gloves. The company has successfully put into operation 8 billion nitrile glove capacity in Anqing, Anhui, in December last year. The first batch of nitrile capacity is expected to be operational by the end of 2025, making the company the first leading enterprise to expand production overseas, which will help overcome tariff barriers and expand into overseas markets such as the U.S. [2]. Financial Summary - The company is projected to achieve net profits of 1.31 billion, 1.64 billion, and 1.87 billion CNY for the years 2025-2027, corresponding to price-to-earnings (PE) ratios of 12.0, 9.6, and 8.4 times respectively [3]. - The financial forecast indicates that the company's revenue for 2025 is expected to be 9.776 billion CNY, with a growth rate of 2.66% compared to the previous year. The net profit for the same year is projected to be 1.311 billion CNY, reflecting a decrease of 10.55% [4][12]. - The company’s earnings per share (EPS) for 2025 is estimated at 2.03 CNY, with a price-to-book (PB) ratio of 0.85 [4][12].