YUYUE MEDICAL(002223) 光大证券·2024-04-28 11:02Investment Rating - The report maintains a "Buy" rating for Yuyue Medical (002223 SZ) [3] Core Views - Yuyue Medical achieved total operating revenue of 7 972 billion yuan in 2023, a year-on-year increase of 12 25%, with net profit attributable to the parent company reaching 2 396 billion yuan, up 50 21% year-on-year [2] - In Q1 2024, the company's operating revenue was 2 231 billion yuan, a year-on-year decrease of 17 44%, and net profit attributable to the parent company was 659 million yuan, down 7 58% year-on-year, which was in line with market expectations [2] - The company's brand influence continues to grow, with the respiratory therapy segment leading market demand, achieving revenue of 3 371 billion yuan in 2023, a year-on-year increase of 50 55% [2] - The diabetes care segment generated revenue of 726 million yuan in 2023, up 37 12% year-on-year, driven by the increasing market share of the 14-day calibration-free CGM product [2] - The company is accelerating the registration and import of core products in overseas markets, strengthening localized operations [2] - Gross margin increased by 3 36 percentage points to 51 49% in 2023, with high-margin products contributing more to revenue [2] - The company plans to focus on three core segments (respiratory therapy, diabetes care, and infection control) and incubate high-potential businesses such as emergency care, ophthalmology, and smart rehabilitation [2] Financial Performance and Forecast - The report raises the forecast for net profit attributable to the parent company to 2 421 billion yuan for 2024 and 2 694 billion yuan for 2025, up 5 99% and 1 90% respectively from previous estimates [3] - A new forecast for 2026 predicts net profit attributable to the parent company of 3 096 billion yuan [3] - The company's EPS is expected to be 2 41 yuan in 2024, 2 69 yuan in 2025, and 3 09 yuan in 2026 [3] - ROE (diluted) is projected to be 18 09% in 2024, 17 65% in 2025, and 17 73% in 2026 [3] - The P/E ratio is expected to be 15x in 2024, 14x in 2025, and 12x in 2026 [3] Market Data and Valuation - The company's total market capitalization is 36 741 billion yuan, with a total share capital of 1 002 billion shares [5] - The stock's 1-year low/high prices are 29 57 yuan and 38 03 yuan, respectively [5] - The 3-month turnover rate is 50 36% [5] - The stock's relative performance over the past year is 31 27%, with an absolute return of 21 14% [6] Business Strategy and Outlook - The company will continue to focus on its three core segments and expand into high-potential areas such as emergency care, ophthalmology, and smart rehabilitation [2] - It will strengthen its offline terminal market presence and adopt regional and urban market strategies [2] - The company plans to accelerate overseas market expansion and seek partnerships with high-level third parties to build innovation centers [2]