CAINA TECHNOLOGY CO.(SZ:301122) KAIYUAN SECURITIES·2024-04-19 10:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1][3]. Core Views - The injection and puncture market is experiencing stable growth, with the medical products sector driving rapid performance growth, while veterinary products and laboratory consumables maintain stable growth. The company has overcome industry barriers in customer loyalty, production processes, patent protection, cleanroom standards, and capital investment [2][4]. - The company holds 120 domestic patents and 4 overseas patents, with its quality management system aligned with international standards, including certifications such as ISO13485, ISO11135, and MDSAP. The company is actively developing new products and expanding cooperation with clients [2][3]. - In 2023, the company faced pressure from inventory reduction, with a need for time to alleviate overseas export pressures. The company achieved revenue of 410 million yuan (down 11.82%) and a net profit of 113 million yuan (down 30.46%) [3][19]. - The company is expected to gradually release production capacity, which is anticipated to drive performance recovery. The second phase of the Huashi Town project has reached 88% completion and is expected to be put into production in batches [2][3]. Financial Summary - In 2023, the company reported a revenue of 410 million yuan, a decrease of 11.82%, and a net profit of 113 million yuan, down 30.46%. The gross margin was 38.88%, a decrease of 1.91 percentage points, while the net margin was 27.42%, down 7.35 percentage points [3][19]. - The medical device segment generated revenue of 260 million yuan (down 1.10%), while animal products revenue was 125 million yuan (down 20.80%). Laboratory consumables revenue significantly decreased by 56.46% to 18 million yuan [3][19]. - The company’s domestic revenue increased by 11.40% to 30 million yuan, while overseas revenue decreased by 13.24% to 381 million yuan [3][19]. - The company has adjusted its profit forecasts for 2024-2026, expecting net profits of 72 million yuan, 113 million yuan, and 137 million yuan respectively, with corresponding EPS of 0.59 yuan, 0.92 yuan, and 1.12 yuan [3][19]. Market Outlook - The global injection and puncture market is expected to reach 25.7 billion USD by 2026, with a CAGR of 8.5% from 2019 to 2026. The company’s overseas customer revenue accounts for over 92.71%, with low procurement risks and no corruption risks [18]. - The company is required to submit evidence materials to the FDA to restore supply to the U.S. market and is also working to expedite the establishment of overseas production capacity [18].