Winner Medical(SZ:300888) Southwest Securities·2024-05-06 01:32Investment Rating - The report maintains a "Buy" rating for the company with a target price of 38.40 CNY over the next six months [1][11]. Core Insights - The company experienced a significant decline in revenue and profit in 2023, with total revenue of 81.9 billion CNY, down 27.9% year-on-year, and a net profit attributable to shareholders of 5.8 billion CNY, down 64.8% year-on-year [2][5]. - The medical consumables segment faced challenges due to a sharp decline in demand for infection protection products, leading to an overall revenue drop in this category [2][3]. - The health consumer products segment showed resilience, with a revenue increase of 6.4% in 2023, driven by strong performance in offline sales channels [3][4]. Summary by Sections Financial Performance - In Q4 2023, the company reported a revenue of 21.7 billion CNY, down 41.4% year-on-year, and a net loss of 15.7 billion CNY, a decline of 491.6% year-on-year [2][3]. - For Q1 2024, revenue from medical consumables was 8.6 billion CNY, down 37.3% year-on-year, while health consumer products generated 10.4 billion CNY, up 7.1% year-on-year [3][4]. Revenue Breakdown - The medical consumables business generated 38.6 billion CNY in 2023, a decrease of 46.7%, accounting for 47.2% of total revenue [2][3]. - The health consumer products segment achieved a revenue of 42.6 billion CNY in 2023, with significant contributions from various product lines [3][4]. Profitability Metrics - The overall gross margin for the company in 2023 was 49%, with a notable improvement in the gross margin for health consumer products to 56.9% [2][3]. - The net profit margin for 2023 was 7.1%, down 7.4 percentage points year-on-year [2][3]. Future Projections - EPS is projected to be 1.60 CNY in 2024, with corresponding PE ratios of 20, 18, and 16 for the years 2024, 2025, and 2026 respectively [4][5]. - Revenue is expected to recover gradually, with a forecasted growth rate of 6.3% in 2024 and 11.5% in 2025 [5][9].