SANXING(SH:601567) INDUSTRIAL SECURITIES·2024-05-12 05:32Investment Rating - The report maintains a "Buy" rating for the company, with an "Increase" recommendation [1][2]. Core Insights - The company has accelerated its expansion in the rehabilitation hospital sector, adding 10 new hospitals in 2023, bringing the total to 28 hospitals with approximately 8,868 beds [1][2]. - Revenue from the medical services segment reached 2.783 billion yuan in 2023, representing a year-over-year increase of 34.73%, with rehabilitation medical revenue growing by 64.80% [1][2]. - The smart power distribution segment has a strong order backlog, with total orders amounting to 12.462 billion yuan as of Q1 2024, a year-over-year increase of 33.18% [3][4]. Financial Performance Summary - In 2023, the company achieved a revenue of 11.463 billion yuan, a year-over-year growth of 26.0%, and a net profit attributable to shareholders of 1.904 billion yuan, reflecting a 100.8% increase [2][3]. - The projected net profits for 2024, 2025, and 2026 are 2.313 billion yuan, 2.821 billion yuan, and 3.458 billion yuan, respectively, with corresponding P/E ratios of 21.3, 17.5, and 14.3 [2][3]. - The gross margin is expected to improve from 34.0% in 2023 to 35.2% in 2024, with ROE increasing from 17.3% to 18.7% [2][4].