Well Lead(603309) 华创证券·2024-04-23 13:02Investment Rating - The report maintains a "Recommend" rating for Weili Medical (603309) with a target price of 18.8 RMB [1] Core Views - Overseas business has significantly improved, with profitability increasing [1] - The company achieved revenue of 1.388 billion RMB in 2023, a year-on-year increase of 1.79%, and net profit attributable to shareholders of 192 million RMB, a year-on-year increase of 15.56% [1] - In Q1 2024, the company's revenue was 309 million RMB, a year-on-year decrease of 14.49%, and net profit attributable to shareholders was 50 million RMB, a year-on-year decrease of 3.54% [1] Business Performance by Region - Domestic revenue in 2023 was 721 million RMB, a year-on-year increase of 1.95%, while overseas revenue was 644 million RMB, a slight decrease of 0.27% [1] - The decline in overseas revenue has significantly narrowed compared to the first half of 2023, which saw an 18.44% decrease [1] - Three new major client projects were successfully implemented in 2023, helping to offset the impact of inventory reduction by North American clients [1] Product Line Performance - Anesthesia product revenue in 2023 was 468 million RMB, a year-on-year increase of 14.23% [1] - Urinary catheter product revenue was 382 million RMB, a year-on-year decrease of 9.90% [1] - Urology product revenue was 203 million RMB, a year-on-year increase of 3.77% [1] - Nursing product revenue was 135 million RMB, a year-on-year decrease of 15.25% [1] - Respiratory product revenue was 88 million RMB, a year-on-year increase of 36.36% [1] - Hemodialysis product revenue was 68 million RMB, a year-on-year decrease of 15.51% [1] Profitability and Margins - The gross profit margin of the main business increased to 45.89% in 2023, up by 2.70 percentage points [1] - The R&D expense ratio increased to 6.84% in 2023, up by 0.82 percentage points [1] - The net profit margin attributable to shareholders reached 13.87%, an increase of 1.65 percentage points [1] Future Outlook - The company expects overall performance to improve in 2024, with new overseas client orders continuing to grow and domestic new product hospital admissions expected to recover [1] - The company forecasts net profit attributable to shareholders of 250 million, 310 million, and 400 million RMB for 2024-2026, with year-on-year growth rates of 27.7%, 27.1%, and 26.4% respectively [1] - The EPS for 2024-2026 is expected to be 0.84, 1.07, and 1.35 RMB, with corresponding P/E ratios of 14, 11, and 9 times [1]