SINOMED(SH:688108) GF SECURITIES·2024-05-29 05:01Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 12.21 CNY per share, compared to the current price of 11.53 CNY [5][4]. Core Views - The company has successfully received regulatory acceptance for its self-expanding intracranial drug-coated stent system, which is expected to accelerate its market launch [25]. - The company is projected to achieve revenues of 500 million CNY, 733 million CNY, and 1.086 billion CNY for the years 2024, 2025, and 2026, respectively, reflecting growth rates of 45.8%, 46.5%, and 48.2% [4][26]. - The report highlights the company's strong position in the industry and its growth potential, leading to the valuation of 10X PS for 2024 [4]. Financial Forecast - The company is expected to reduce its losses significantly, with a projected net profit of 9 million CNY in 2024, 14 million CNY in 2025, and 23 million CNY in 2026, indicating growth rates of 121.6%, 69.2%, and 56.2% respectively [26]. - EBITDA is forecasted to improve from 26 million CNY in 2023 to 87 million CNY in 2024, followed by 69 million CNY in 2025 and 77 million CNY in 2026 [26]. - The report anticipates a gradual recovery in profitability, with EPS expected to turn positive in 2024 at 0.02 CNY per share, increasing to 0.04 CNY and 0.06 CNY in the subsequent years [26]. Market Performance - The company has shown a strong relative performance against the market, with a notable increase in stock price since May 2023 [27].