Endovastec(SH:688016) Haitong Securities·2024-06-04 00:31Investment Rating - The investment rating for the company is "Outperform the Market" [12][29]. Core Views - The company has maintained high growth in performance, with total revenue for 2023 reaching 1.187 billion yuan, a year-on-year increase of 32.43%, and a net profit of 492 million yuan, up 37.98% [14]. - The company is accelerating its global development, with overseas sales growth exceeding 55% in 2023, expanding its market presence to 31 countries [21]. - The company is focusing on enhancing its marketing channels in lower-tier cities, increasing market coverage significantly [14]. Financial Performance - In 2023, the company reported total revenue of 1.187 billion yuan, with a net profit of 492 million yuan and a non-recurring net profit of 462 million yuan, reflecting year-on-year growth rates of 32.43%, 37.98%, and 42.74% respectively [14]. - The first quarter of 2024 saw revenue of 358 million yuan, a 25.38% increase year-on-year, with a net profit of 184 million yuan, up 47.62% [14]. - The company’s gross profit margin for 2023 was 76.5%, with projections for 2024 to 2026 indicating stable margins around 75.2% [22][24]. Product and Market Development - The company’s star products continue to grow steadily, with a 28.07% increase in revenue from aortic stents and a 54.59% increase from intraoperative stents in 2023 [20]. - New products such as the Castor branched aortic stent and Minos abdominal aortic stent are gaining traction, with significant increases in hospital adoption and terminal implantation [20]. - The company is enhancing its product offerings and market penetration, particularly in the aortic and peripheral vascular intervention markets [20]. Future Projections - The company is expected to achieve earnings per share (EPS) of 5.31, 6.83, and 8.71 yuan for the years 2024 to 2026, respectively, with net profits projected at 654 million, 842 million, and 1.074 billion yuan [29]. - The report suggests a reasonable valuation range for the company of 159.19 to 185.72 yuan based on a price-to-earnings (PE) ratio of 30-35 times for 2024 [29].