Endovastec(SH:688016) Southwest Securities·2024-03-28 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative performance increase of over 20% compared to the relevant market index within the next six months [11][15]. Core Insights - The company has shown strong revenue growth, with a reported revenue of 1.19 billion yuan in 2023, representing a year-on-year increase of 32.4%. The net profit attributable to the parent company was 490 million yuan, up 38% from the previous year [13]. - The company's innovative products, such as the Castor and Minos stents, are gaining traction in the market, with significant increases in terminal coverage and implantation rates [14][15]. - The company is expanding its global presence, with overseas sales revenue increasing by 55% in 2023, now covering 31 countries [2]. Financial Performance - Quarterly revenue for 2023 was reported as follows: Q1: 290 million yuan (+10.8%), Q2: 340 million yuan (+67.3%), Q3: 270 million yuan (+29.9%), Q4: 300 million yuan (+28.6%). The net profit for the same quarters was 130 million yuan (+1.1%), 160 million yuan (+69%), 110 million yuan (+26.9%), and 100 million yuan (+85.7%) respectively [1]. - The gross margin for 2023 was 76.5%, with a net profit margin of 41% [1]. Revenue Projections - Revenue projections for 2024 to 2026 are as follows: 2024: 1.19 billion yuan, 2025: 1.57 billion yuan, and 2026: 2.09 billion yuan, with growth rates of approximately 32% each year [31]. - The company anticipates a steady increase in earnings per share (EPS) from 5.95 yuan in 2024 to 12.15 yuan in 2026 [15][16]. Product Development - The company is focusing on innovative products, with the Castor stent already covering over 1,000 hospitals and the Minos stent covering over 800 hospitals [14]. - The expected revenue growth for peripheral products is projected at 40% for 2024 and 2025, and 30% for 2026 [8][30].