TC Medical(SH:600763) SINOLINK SECURITIES·2024-04-26 02:00Investment Rating - The report maintains an "Accumulate" rating for Tongce Medical (600763.SH) [2][3] Core Views - In 2023, Tongce Medical achieved revenue of 2.847 billion RMB, a year-on-year increase of 5%, while net profit attributable to shareholders was 500 million RMB, down 9% year-on-year [2] - The outpatient volume for oral medical services reached 3.3533 million, reflecting a 14% year-on-year recovery, with the dental implant segment benefiting from centralized procurement policies [2] - The company has successfully implemented a "dual-brand strategy" in Zhejiang province, with revenue from outside Zhejiang growing over 20% [2] Summary by Sections Performance Overview - In Q1 2024, the company reported revenue of 708 million RMB, a 5% increase year-on-year, and a net profit of 173 million RMB, up 3% year-on-year [2] - The dental implant business saw significant growth, with over 53,000 implants placed in 2023, a 47% increase year-on-year, contributing 479 million RMB to revenue [2] Business Analysis - The pediatric segment generated 499 million RMB in revenue, a 3% increase, while the restoration segment also grew by 7% to 456 million RMB [2] - The company aims to enhance its market share by adjusting its pharmaceutical layout and increasing the supply of mid-to-low-end service products [2] Profit Forecast and Valuation - The forecast for net profit attributable to shareholders is adjusted to 702 million RMB for 2024, 869 million RMB for 2025, and 1.035 billion RMB for 2026, with respective year-on-year growth rates of 40%, 24%, and 19% [3] - The estimated EPS for the same years is projected at 2.19 RMB, 2.71 RMB, and 3.22 RMB, with corresponding P/E ratios of 26, 21, and 17 times [3]