YUYUE MEDICAL(SZ:002223) GF SECURITIES·2024-04-28 06:02Investment Rating - The report maintains a "Buy" rating for Yuyue Medical (002223 SZ) with a target price of 40 98 RMB per share [3] Core Views - Yuyue Medical achieved its 2023 performance targets with steady growth across major business segments The company reported revenue of 7 972 billion RMB (YoY +12 25%) and net profit attributable to shareholders of 2 396 billion RMB (YoY +50 21%) [1] - The company's gross margin improved to 51 49% (YoY +3 36pp) due to cost reduction and efficiency improvements [1] - Key business segments showed strong growth: respiratory therapy (YoY +50 55%), diabetes care (YoY +37 12%), home electronic testing and in vitro diagnostics (YoY +10 05%), and emergency care (YoY +8 04%) [1] - For 2024, the company plans to focus on expanding its core businesses (respiratory therapy, diabetes care, infection control) and incubating high-potential areas (emergency care, ophthalmology, intelligent rehabilitation) [1] Financial Performance - In 2023, the company's sales expense ratio decreased to 13 78% (YoY -0 74pp), management expense ratio to 5 16% (YoY -0 76pp), and R&D expense ratio to 6 33% (YoY -0 66pp) [1] - For 2024 Q1, the company reported revenue of 2 231 billion RMB (YoY -17 44%) and net profit attributable to shareholders of 659 million RMB (YoY -7 58%) [1] Financial Projections - Revenue is projected to grow to 9 404 billion RMB in 2024 (YoY +18 0%), 11 069 billion RMB in 2025 (YoY +17 7%), and 13 197 billion RMB in 2026 (YoY +19 2%) [2] - Net profit attributable to shareholders is expected to reach 2 567 billion RMB in 2024 (YoY +7 2%), 2 787 billion RMB in 2025 (YoY +8 6%), and 3 080 billion RMB in 2026 (YoY +10 5%) [2] - EPS is forecasted to be 2 56 RMB/share in 2024, 2 78 RMB/share in 2025, and 3 07 RMB/share in 2026 [2] Valuation Metrics - The company's 2024 PE ratio is estimated at 14 31x, with a target PE of 16x [1][2] - ROE is projected to be 17 9% in 2024, 16 2% in 2025, and 15 2% in 2026 [2] - EV/EBITDA is expected to decrease from 13 32x in 2024 to 7 30x in 2026 [2]