Zhende Medical(603301) 华创证券·2024-04-30 08:02Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 29 CNY, while the current price is 20.90 CNY [1]. Core Insights - The company's performance in 2023 met expectations, with steady growth in its core business despite a significant decline in overall revenue and profit [11]. - The company achieved a total revenue of 41.27 billion CNY in 2023, a decrease of 32.76% year-on-year, and a net profit of 1.98 billion CNY, down 70.82% [11]. - In Q1 2024, the company reported revenue of 9.64 billion CNY, a decline of 25.88% year-on-year, with a net profit of 73.4 million CNY, down 49.89% [11]. Financial Performance Summary - Domestic revenue in 2023 was 19.47 billion CNY, down 52.56%, with core business revenue remaining stable at 13.67 billion CNY [22]. - The company expanded its domestic hospital coverage to over 8,000 hospitals, an increase of more than 1,000 from the beginning of the year [22]. - International revenue reached 21.59 billion CNY in 2023, reflecting a growth of 6.49%, with core revenue increasing by 8.32% [22]. - R&D expenses were 1.39 billion CNY, accounting for 3.37% of total revenue, indicating a commitment to product innovation [22]. - In Q1 2024, core product revenue grew by 3.31% year-on-year, while revenue from pandemic-related products saw a significant decline of 87.66% [22]. Future Projections - The company is projected to achieve net profits of 4.1 billion CNY, 5.2 billion CNY, and 6.4 billion CNY for the years 2024 to 2026, representing year-on-year growth rates of 106.0%, 26.7%, and 23.4% respectively [22]. - The estimated price-to-earnings (PE) ratios for the next three years are 14, 11, and 9 times [22]. - The discounted cash flow (DCF) model values the company at 77 billion CNY, supporting the target price of 29 CNY [22].