SONOSCAPE(SZ:300633) Hua Yuan Zheng Quan·2024-04-29 07:00Investment Rating - The report initiates coverage with a "Buy" rating for the company [4][7][38]. Core Insights - The company is positioned as a leading player in the domestic and international medical imaging equipment market, with a strong focus on ultrasound and endoscopy products, which are expected to drive significant growth [4][9]. - The ultrasound business is experiencing steady revenue growth, with a projected income of 13.45 billion, 15.47 billion, and 17.33 billion RMB for 2024-2026, reflecting growth rates of 10%, 15%, and 12% respectively [8][38]. - The endoscopy segment is anticipated to grow rapidly, with expected revenues of 11.90 billion, 16.78 billion, and 23.50 billion RMB for the same period, showing growth rates of 40%, 41%, and 40% [8][38]. Summary by Sections Company Overview - Established in 2002, the company has evolved from a single ultrasound product focus to a diversified medical device platform, including ultrasound, endoscopy, minimally invasive surgery, and cardiovascular intervention [12]. - In 2023, the company reported total revenue of 21.21 billion RMB, a year-on-year increase of 20.29%, with endoscopy revenue at 8.50 billion RMB (up 39%) and ultrasound revenue at 12.23 billion RMB (up 13.28%) [12][15]. Revenue and Profitability Forecast - The company forecasts net profits of 5.81 billion, 7.56 billion, and 9.84 billion RMB for 2024-2026, with growth rates of 27.84%, 30.07%, and 30.19% respectively [4][38]. - The projected price-to-earnings (PE) ratios for the upcoming years are 31, 23, and 18 [4][38]. Market Position and Competitive Landscape - The domestic soft endoscope market is expected to grow from 73.3 billion RMB in 2023 to 81.2 billion RMB by 2025, with a compound annual growth rate (CAGR) of 10.96% [20]. - The company holds a market share of approximately 6.65% in the domestic soft endoscope market, ranking just behind major competitors [20][22]. Product Development and Innovation - The company has made significant advancements in high-end ultrasound products, launching the P80/S80 ultra-high-end series and S60/P60 high-end products, which are expected to enhance its competitive edge in both domestic and global markets [4][37]. - The endoscopy product line has been expanded with the introduction of the HD-580 series, which is anticipated to further penetrate the high-end market [4][20]. International Expansion - The company has established a presence in nearly 170 countries, with overseas revenue reaching 9.39 billion RMB in 2023, accounting for 44.31% of total revenue [15][17].