YUYUE MEDICAL(SZ:002223) Guotou Securities·2024-04-30 04:00Investment Rating - The report maintains a "Buy-A" investment rating with a 6-month target price of 53.00 CNY, compared to the current stock price of 36.65 CNY as of April 26, 2024 [1][7]. Core Insights - The company achieved a revenue of 7.972 billion CNY in 2023, representing a year-on-year growth of 12.25%. The net profit attributable to shareholders was 2.396 billion CNY, up 50.21% year-on-year, with a net profit margin of 29.81%, an increase of 7.66 percentage points [2][3]. - The respiratory treatment solutions segment saw significant growth, with revenues of 3.371 billion CNY, a 50.55% increase year-on-year, driven by strong demand for oxygen machines and nebulizers [3]. - The diabetes care solutions segment also performed well, generating 726 million CNY in revenue, a 37.12% increase year-on-year, supported by product upgrades and market expansion [3]. - The company anticipates revenue growth rates of 5.8%, 18.0%, and 15.5% for 2024, 2025, and 2026, respectively, while net profit growth rates are projected at -11.3%, 19.7%, and 16.7% for the same periods [7][8]. Financial Performance Summary - In Q4 2023, the company reported a revenue of 1.309 billion CNY, a decrease of 34.08% year-on-year, and a net profit of 205 million CNY, down 55.36% year-on-year [2]. - For Q1 2024, the company achieved a revenue of 2.231 billion CNY, a decrease of 17.44% year-on-year, with a net profit of 659 million CNY, down 7.58% year-on-year [2]. - The gross margin for 2023 was 51.49%, an increase of 3.36 percentage points, while the net profit margin was 29.81%, reflecting effective cost management and improved product mix [2][3]. Segment Performance - The infection control solutions segment generated 756 million CNY in revenue, a decrease of 36.15% year-on-year, attributed to high base effects from the previous year [3][5]. - The home electronic testing and in vitro diagnostics segment reported a revenue of 1.673 billion CNY, a 10.05% increase year-on-year, indicating stable growth [3][5]. - The emergency segment saw a revenue of 163 million CNY, up 8.04% year-on-year, with ongoing expansion in sales of the AED product M600 [5].