Winner Medical(SZ:300888) HTSC·2025-07-04 05:30Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 60.06 [6][4]. Core Views - The company is positioned as a "healthcare enterprise driven by both consumption and medical sectors," with its brands "Winner" and "Purcotton" gaining influence. The consumption segment is expected to maintain growth momentum despite short-term fluctuations due to public sentiment events, while the medical segment is anticipated to recover due to both internal and external growth drivers [1][3]. - The company has shown strong performance in its core product categories, particularly during the 618 shopping festival, with significant sales growth in key items such as facial towels and baby products [2][3]. Summary by Sections Consumption Segment - In Q1 2025, the consumption segment achieved revenue of RMB 1.34 billion, representing a year-on-year increase of 28.8%. Although Q2 revenue growth is expected to slow due to industry sentiment issues, core categories continue to perform well. The company has implemented product innovation and precise marketing strategies, leading to significant sales in e-commerce platforms [2][3]. - The marketing strategy has focused on product safety and brand recognition, particularly in the sanitary napkin category, which is expected to see continued growth alongside innovations in adult underwear and cotton soft towels [3][4]. Medical Segment - The medical segment is benefiting from ongoing product innovation and channel expansion, with a focus on domestic hospital channels and consumer medical channels. The acquisition of GRI is expected to enhance export capabilities due to its global production capacity [3][4]. Financial Forecast and Valuation - The company is projected to achieve net profits of RMB 1.061 billion, RMB 1.301 billion, and RMB 1.589 billion for the years 2025, 2026, and 2027, respectively, with corresponding EPS of RMB 1.82, RMB 2.23, and RMB 2.73. The report maintains a target PE of 33 times for 2025, reflecting the dual growth drivers of consumption and medical sectors [4][10].