Weigao Orthopaedic(688161) 东方证券·2024-03-30 16:00Investment Rating - The report adjusts the investment rating to "Accumulate" based on the company's performance and market conditions [21]. Core Views - The company faces short-term performance pressure due to orthopedic centralized procurement, with a reported revenue of 1.284 billion yuan in 2023, down 37.63% year-on-year, and a net profit of 112 million yuan, down 81.30% year-on-year. However, the company is expected to adapt and achieve volume-based pricing [4][21]. - The company has a comprehensive product line and is continuously improving its marketing strategies to align with industry trends, which is expected to enhance its operational quality [4]. - The company focuses on orthopedic devices and is exploring new fields, having established a robust R&D system and achieved significant progress in product registration and material development [4]. Financial Summary - In 2023, the company reported a revenue of 1.284 billion yuan, a decrease of 37.63% year-on-year, and a net profit of 112 million yuan, a decrease of 81.30% year-on-year. The projected revenues for 2024, 2025, and 2026 are 1.553 billion yuan, 1.881 billion yuan, and 2.297 billion yuan, respectively, with expected growth rates of 21.0%, 21.1%, and 22.1% [24]. - The earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 0.74 yuan, 1.01 yuan, and 1.25 yuan, respectively [24]. - The gross margin is expected to recover to 74.3% in 2024, with net profit margins projected at 19.1% for the same year [24].