Winner Medical(SZ:300888) EBSCN·2024-04-29 02:33Investment Rating - The report maintains a rating of "Accumulate" for the company [2] Core Views - The company experienced a significant decline in revenue and net profit in 2023, with revenue down 27.89% to 8.185 billion yuan and net profit down 64.84% to 580 million yuan [2][4] - The medical consumables and consumer goods segments showed divergent performance, with medical consumables revenue declining by 46.74% due to reduced demand for infection protection products, while consumer goods revenue grew by 6.36% [2][4] - The report anticipates a return to stable growth in 2024, particularly in the medical consumables segment as the base effect of infection protection products diminishes [4] Summary by Sections Financial Performance - In 2023, the company reported total revenue of 81.85 billion yuan, a year-on-year decline of 27.89%, and a net profit of 580 million yuan, down 64.84% [2][4] - The first quarter of 2024 saw revenue of 19.09 billion yuan, a decrease of 18.84% year-on-year, and a net profit of 1.82 billion yuan, down 51.60% [2][4] - The gross margin for 2023 improved to 49.00%, up 1.61 percentage points year-on-year, primarily due to the higher revenue contribution from consumer goods [3][6] Business Segments - Medical consumables accounted for 47% of total revenue in 2023, with a significant decline in revenue from infection protection products, which fell by 80.73% [2][4] - The consumer goods segment, which includes health and lifestyle products, achieved a revenue increase of 6.36% in 2023, with a gross margin improvement of 4 percentage points [2][4] Market Dynamics - The overseas channel for medical consumables saw a revenue increase of 15.4% in 2023, while domestic sales through hospitals and pharmacies faced significant declines [2][4] - The company plans to focus on five strategic products in the medical consumables segment to drive growth and enhance product capabilities [4] Future Outlook - The report projects a recovery in earnings for 2024, with adjusted profit forecasts reflecting a decrease of 11% and 18% for 2024 and 2025, respectively [4][5] - Expected EPS for 2024, 2025, and 2026 are 1.60 yuan, 1.80 yuan, and 2.00 yuan, respectively, with corresponding P/E ratios of 20 and 17 for 2024 and 2025 [5][6]