Xiangyu Medical(SH:688626) Huaan Securities·2024-04-26 13:00Investment Rating - The investment rating for the company is "Buy" [10][11]. Core Views - The report highlights that the company is a leading player in the domestic rehabilitation medical device market, benefiting from first-mover advantages, a comprehensive product range, extensive distribution channels, and low costs. The brand effect is beginning to take shape, and the company is expected to achieve significant revenue growth in the coming years [10][12]. - The company has increased its revenue forecasts for 2024-2026, expecting revenues of 930 million, 1.154 billion, and 1.434 billion yuan, with growth rates of 24.8%, 24.2%, and 24.2% respectively. Net profits for the same period are projected to be 269 million, 339 million, and 426 million yuan, with growth rates of 18.6%, 25.8%, and 25.7% respectively [10][11]. Financial Performance Summary - In 2023, the company achieved a revenue of 745 million yuan, a year-on-year increase of 52%. The net profit attributable to the parent company was 227 million yuan, reflecting an 81% year-on-year growth [10][11]. - The gross profit margin for 2023 was 68.6%, with an expected slight decline to 68.5% in 2024 and 68.4% in 2025 and 2026 [10][11]. - The report indicates that the company's earnings per share (EPS) are projected to be 1.44 yuan in 2024, 1.68 yuan in 2025, and 2.12 yuan in 2026, with corresponding price-to-earnings (P/E) ratios of 37.01, 22.82, and 18.14 respectively [10][11]. Strategic Outlook - The company is focusing on expanding its presence in the home care and overseas markets, which are expected to contribute significantly to revenue growth in the next 1-2 years. The current core business involves the research and sales of rehabilitation medical devices for domestic medical institutions and B-end clients [12][18]. - The company has a robust product structure with over 600 proprietary products across 20 major series, covering various customer segments including public hospitals, private hospitals, grassroots medical institutions, and non-medical clients [12][18].