CHUNLI MEDICAL(SH:688236) Guotai Junan Securities·2024-03-31 16:00Investment Rating - The report maintains a rating of "Buy" for the company, with a target price adjusted to 27.63 CNY from the previous 32.30 CNY [6][14][13]. Core Insights - The company's performance in 2023 met expectations, with total revenue of 1.209 billion CNY, reflecting a slight increase of 0.6% year-on-year. However, the net profit attributable to shareholders decreased by 9.7% to 278 million CNY [13][6]. - The report highlights a significant improvement in cash flow, with operating cash flow reaching 512 million CNY, a substantial increase compared to the previous year [13]. - Domestic sales experienced a decline of 7.4% to 1.009 billion CNY, while overseas sales surged by 81.7% to 198 million CNY, indicating strong international market performance [13][6]. - The company continues to invest in research and development, with expenditures reaching 157 million CNY in 2023, focusing on innovation in orthopedic products [13]. Financial Summary - Revenue Forecast: - 2023: 1.209 billion CNY - 2024: 1.510 billion CNY (projected growth of 25%) - 2025: 1.961 billion CNY (projected growth of 30%) [13][6]. - Net Profit Forecast: - 2023: 278 million CNY - 2024: 353 million CNY (projected growth of 27%) - 2025: 464 million CNY (projected growth of 31%) [13][6]. - Earnings Per Share (EPS) Forecast: - 2023: 0.72 CNY - 2024: 0.92 CNY - 2025: 1.21 CNY - 2026: 1.51 CNY [13][6]. Valuation Metrics - The report provides valuation metrics, including: - Price-to-Earnings (PE) ratio for 2024E: 30X - Expected dividend per share for 2024: 0.40 CNY [13][6]. - The company's market capitalization is reported at 7.226 billion CNY, with a current share price of 18.84 CNY [15][6].