Endovastec(688016) 平安证券·2024-04-28 12:00Investment Rating - The report maintains a "Recommended" rating for the company [9][22]. Core Insights - The company reported a Q1 2024 revenue of 358 million yuan, representing a year-over-year increase of 25.38%, and a net profit attributable to shareholders of 184 million yuan, up 47.62% [4][20]. - The growth in revenue and profit exceeded expectations, driven by core products such as Castor, Minos, and peripheral drug balloons, with a significant contribution from high-value products [22]. - The gross margin for Q1 2024 reached 76.52%, an increase of 0.78 percentage points, attributed to a favorable product mix and a decrease in expense ratios [22][23]. Financial Summary - Revenue projections for 2024-2026 are as follows: 1,518 million yuan in 2024, 1,930 million yuan in 2025, and 2,438 million yuan in 2026, with year-over-year growth rates of 27.8%, 27.1%, and 26.3% respectively [7][14]. - Net profit forecasts for the same period are 657 million yuan in 2024, 832 million yuan in 2025, and 1,054 million yuan in 2026, with growth rates of 33.3%, 26.7%, and 26.6% respectively [7][14]. - The company's gross margin is expected to remain stable around 76.5% for the next few years, while the net margin is projected to improve to 43.3% in 2024 [14]. Operational Metrics - The company’s return on equity (ROE) is projected to increase from 12.8% in 2023 to 16.5% by 2026 [14]. - The price-to-earnings (P/E) ratio is expected to decrease from 29.4 in 2023 to 13.7 by 2026, indicating a potentially attractive valuation as earnings grow [14]. - The company’s cash flow from operating activities is forecasted to rise from 648 million yuan in 2024 to 1,091 million yuan in 2026 [13].