Sinocare(SZ:300298) Southwest Securities·2024-05-13 06:06Investment Rating - The investment rating for the company is "Hold" with a target price not specified for the next 6 months [20][46]. Core Views - The company reported a revenue of 4.06 billion yuan in 2023, with a year-on-year growth of 44.26%. The net profit attributable to the parent company was 284.40 million yuan, down 36.31% from the previous year [32][38]. - The Continuous Glucose Monitoring (CGM) segment is experiencing rapid growth, with sales exceeding 1 billion yuan in 2023. The company is actively pursuing international certifications and expanding its global market presence [32][34]. - The Blood Glucose Monitoring (BGM) segment showed stable growth, with a revenue increase of 10.1% in 2023, supported by extensive market coverage and partnerships [32][34]. - The company is increasing its R&D investments, which is expected to enhance gross margins in the future [32][34]. Financial Summary - Revenue projections for 2024, 2025, and 2026 are 4.85 billion yuan, 5.71 billion yuan, and 6.69 billion yuan, respectively, with growth rates of 19.50%, 17.70%, and 17.20% [35][38]. - The net profit forecast for 2024, 2025, and 2026 is 433.24 million yuan, 505.10 million yuan, and 677.78 million yuan, corresponding to growth rates of 52.34%, 16.59%, and 34.19% [35][38]. - The company's PE ratios for the next three years are projected to be 32, 27, and 20, indicating a decreasing trend [35][38]. Market Position and Competitiveness - The company has a significant market presence, covering over 3,500 hospitals and collaborating with more than 4,000 distributors and nearly 600 chain pharmacies [32][34]. - The CGM product "Sanofi Aikan" has received multiple certifications across various regions, enhancing its competitive edge in the market [32][34]. - The company is expected to gradually improve its domestic market share and expand its global footprint through product strength and strategic initiatives [32][34].