IRON TECH(SH:688329) Minsheng Securities·2024-03-23 16:00Investment Rating - The report gives a "Buy" rating for the company, with a target price of 23.37 CNY [3][68]. Core Insights - The company, Ailong Technology, is a leader in intelligent management of medical supplies, providing comprehensive solutions for various medical institutions, and is the first specialized enterprise in this field to be listed on the A-share market [2][68]. - The company focuses on three main business segments: smart pharmacies, smart wards, and smart logistics, utilizing IoT and big data technologies to enhance efficiency and safety in medical supply management [2][68]. - The report forecasts the company's net profit for 2023-2025 to be 0.27 billion, 1.20 billion, and 1.61 billion CNY, with corresponding PE ratios of 64X, 15X, and 11X, indicating significant growth potential [68]. Summary by Sections Company Overview - Ailong Technology specializes in intelligent management of medical supplies, offering solutions that include smart pharmacies, smart wards, and smart logistics [2][14]. - The company employs advanced technologies such as automation and intelligent sensing to create a comprehensive management system for medical supplies [2][68]. Financial Forecast and Key Metrics - The company is projected to achieve revenues of 477 million CNY in 2023, with a growth rate of 22.6% [9]. - The net profit attributable to shareholders is expected to be 102 million CNY in 2023, reflecting a growth rate of 7.1% [9]. - The report highlights a stable financial outlook with a projected PE ratio decreasing from 64 in 2023 to 11 in 2025, indicating an attractive valuation [68]. Competitive Advantages - The company has a clear and stable shareholding structure, with the largest shareholder extending the lock-up period for their shares, demonstrating confidence in the company's future [21][43]. - Ailong Technology has accumulated significant intellectual property, with over 560 patents, enhancing its competitive edge in the market [22][47]. - The company has established a nationwide after-sales service network, ensuring rapid response and support for its products [25][50]. Market Position and Growth Potential - The report emphasizes the company's leading position in the intelligent management of medical supplies, with a focus on expanding its market presence and product offerings [68][69]. - The automation pharmacy market in China is expected to grow significantly, with a projected compound annual growth rate (CAGR) of 18% from 2022 to 2027 [68][98]. - The company is well-positioned to benefit from the increasing demand for automation and intelligent solutions in the healthcare sector, particularly in light of recent advancements in AI technology [68][98].