YUYUE MEDICAL(SZ:002223) Ping An Securities·2024-05-07 01:00Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting the stock to outperform the market by over 20% within the next six months [2][10]. Core Insights - The company's revenue growth is in line with expectations, gradually entering a phase of stable growth. In 2023, the company achieved an operating income of 7.972 billion yuan, a year-on-year increase of 12.25%, and a net profit attributable to shareholders of 2.396 billion yuan, up 50.21% year-on-year [3][4]. - The first quarter of 2024 saw a decline in revenue to 2.231 billion yuan, down 17.44% year-on-year, with a net profit of 659 million yuan, a decrease of 7.58% year-on-year [3][4]. - The company has a strong presence in the home medical device sector, with significant growth in various business segments, including a 50.55% increase in the respiratory segment and a 37.12% increase in diabetes care [4][6]. Financial Performance - The company reported a gross margin of 51.49% in 2023, an increase of 3.36 percentage points from 2022, attributed to product structure optimization and effective cost management [4][6]. - Research and development expenses for 2023 were 504 million yuan, representing a year-on-year increase of 1.61%, with a research expense ratio of 6.33% [4][6]. - The company’s net profit margin for 2023 was 29.81%, up 7.66 percentage points year-on-year, indicating improved operational efficiency [6]. Future Projections - Revenue projections for 2024 to 2026 are adjusted to 8.906 billion yuan, 10.287 billion yuan, and 11.907 billion yuan, respectively, with expected year-on-year growth rates of 11.7%, 15.5%, and 15.8% [5][6]. - Net profit forecasts for the same period are set at 2.379 billion yuan, 2.786 billion yuan, and 3.192 billion yuan, with anticipated growth rates of -0.7%, 17.1%, and 14.6% [5][6]. - The company is focusing on expanding its core business areas, including respiratory and diabetes care, while also exploring high-potential segments like emergency care and smart rehabilitation [6][7].