Sinocare(300298) EBSCN·2024-04-28 12:02Investment Rating - The report maintains a "Buy" rating for the company [4][3]. Core Views - The company is positioned as a leading domestic player in the Continuous Glucose Monitoring (CGM) market, with expected sales growth following the launch of its CGM products in 2023, projecting sales revenue of approximately 800 million in 2023 and a target of 300 to 500 million in 2024 [1][3]. - The company has been developing CGM products since 2008, and the recent approval of its new products is anticipated to drive performance growth [1]. - The company has achieved significant international milestones, including CE certification for its CGM products in 2023 and plans to submit an FDA application in 2024, indicating potential for overseas market expansion [11]. Financial Summary - The company reported revenues of 4.059 billion and a net profit of 284 million for 2023, with a year-over-year revenue growth of 2.69% [10]. - The forecast for net profit is adjusted to 445 million for 2024 and 525 million for 2025, reflecting a decrease of 17.6% and 21.6% respectively from previous estimates [3]. - The company’s revenue from blood glucose monitoring (BGM) reached 2.873 billion in 2023, with a year-over-year growth of 6.21% [19]. Growth Projections - The company expects to achieve profitability by 2025, with the second-generation CGM products anticipated to enhance its product lineup [1]. - The projected revenue growth rates for the next few years are 12.78% for 2024, 13.79% for 2025, and 14.68% for 2026 [12]. - The company’s earnings per share (EPS) is forecasted to increase from 0.50 in 2023 to 1.11 by 2026 [12].