Core Viewpoint - The company, Steady Medical, acknowledges the potential benefits of the national fertility subsidy policy for its infant products, particularly under the Purcotton brand, which includes items like diapers and clothing for infants [1] Group 1: Company Products - The company emphasizes its commitment to the development of infant-related products, which include baby wet and dry cotton wipes, Nais baby diapers, and various infant clothing and accessories such as onesies, swaddles, and gauze bath towels [1] - Recent years have seen significant improvements in product design and user experience for the company's infant product line [1] Group 2: Market Context - The national fertility subsidy policy has been clarified to include daily necessities for infants, which may positively impact the sales of the company's products [1]

Group 1: Company Overview - Steady Medical Group, founded in 1991, has evolved into a health enterprise focusing on medical and consumer sectors, listed on the Shenzhen Stock Exchange in 2020 [13] - The company aims to "protect health, care for life, and protect the environment" with its main brands being "Winner Medical" and "Purcotton" [13] Group 2: Annual Performance Review - In 2024, the company achieved a total revenue of 89.8 billion CNY, a 9.7% increase from 2023's 81.9 billion CNY [18] - Excluding infection protection product revenue, the adjusted revenue was 86.2 billion CNY, reflecting an 18.6% year-on-year growth [18] - The revenue structure for 2024 was 43% from medical consumables and 56% from consumer products [18] Group 3: Profitability - The net profit attributable to shareholders reached 7.0 billion CNY, a 19.8% increase compared to 2023 [21] - The net profit margin improved to 7.7%, up 0.7 percentage points from the previous year [21] - The gross profit margin for 2024 was 47.3%, indicating a stable profitability trend [20] Group 4: Asset Quality and R&D Investment - Total assets at the end of 2024 were 184 billion CNY, a 7.5% increase from the previous year [26] - The asset-liability ratio stood at 35.4%, maintaining a low level [26] - The company emphasized R&D, with a steady increase in the number of patents and medical product registrations [26] Group 5: Shareholder Returns - The proposed cash dividend for 2024 is 3.8 billion CNY, representing 54% of the net profit [30] - Cumulative cash dividends since listing amount to 26.1 billion CNY, accounting for 93% of the net proceeds from the IPO [30] Group 6: Medical Consumables Business - The medical segment generated 39.1 billion CNY in revenue for 2024, showing resilience despite a high base from infection protection products [34] - Excluding infection protection, the medical consumables revenue was 35.5 billion CNY, a 20.4% increase year-on-year [34] - Core categories such as high-end dressings and surgical consumables saw revenue growth exceeding 30% [34] Group 7: Consumer Products Business - The consumer segment, led by Purcotton, achieved 49.9 billion CNY in revenue, a 17.1% increase from 2023 [43] - Online sales contributed 62% of the revenue, while offline stores accounted for 30% [46] - The company added 92 new offline stores in 2024, bringing the total to 487 [46] Group 8: Q1 2025 Performance Overview - In Q1 2025, total revenue reached 26.1 billion CNY, a 36.5% increase year-on-year [53] - The medical business revenue for Q1 2025 was 12.5 billion CNY, up 46.3% [54] - The consumer business generated 13.4 billion CNY, reflecting a 28.8% growth [54]

Core Viewpoint - The company reported a steady growth in revenue and net profit for 2024, with a significant increase in Q1 2025, indicating a positive trend in financial performance [3][4]. Financial Performance - In 2024, the company achieved a revenue of 8.98 billion yuan, a year-on-year increase of 9.7%, and a net profit attributable to shareholders of 700 million yuan, up 19.8% [3]. - For Q1 2025, the company reported a revenue of 2.61 billion yuan, representing a year-on-year growth of 36.5%, and a net profit of 250 million yuan, also up 36.3% [3]. Medical Consumables Segment - In 2024, the revenue from medical consumables accounted for 43.5% of total revenue, with a slight increase of 1.1% year-on-year. However, excluding the contribution from the acquired GRI, the revenue declined by 6.4% [4]. - The gross margin for medical consumables decreased by 3.9 percentage points to 36.5% in 2024, with a notable decline in the gross margin of infection protection products [4]. - In Q1 2025, the revenue from medical consumables surged by 46.3%, with a 10.5% growth when excluding GRI's impact [4]. Health and Lifestyle Products Segment - The health and lifestyle products segment accounted for 55.6% of total revenue in 2024, with a year-on-year growth of 17.1% and a slight decrease in gross margin by 1.0 percentage points [6]. - For Q1 2025, this segment's revenue grew by 28.8% year-on-year [6]. - Online and offline sales channels contributed to the revenue, with online sales growing by 18.9% and offline sales by 9.3% in 2024 [6][7]. Product Performance - In 2024, the revenue from infection protection products dropped significantly by 61.2%, while other product categories such as high-end wound dressings and surgical consumables showed strong growth [5]. - In Q1 2025, surgical consumables and high-end wound dressings experienced substantial growth rates of 196.8% and 21.1%, respectively [5].

Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company reported strong performance in Q1, with significant contributions from both the medical and consumer goods sectors [1][13] - The revenue for 2024 reached 8.98 billion yuan, a year-on-year increase of 9.7%, while the net profit attributable to shareholders was 700 million yuan, up 19.8% [5][6] - The company has adjusted its profit forecasts for 2025 and 2026, increasing the net profit estimates by 17% and 18% respectively [13] Financial Performance - In Q1 2025, the company achieved a revenue of 2.61 billion yuan, representing a year-on-year growth of 36.5%, and a net profit of 250 million yuan, up 36.3% [6] - The medical consumables segment saw a revenue increase of 1.1% in 2024, while the consumer goods segment grew by 17.1% [7][9] - The gross profit margin for 2024 decreased by 1.7 percentage points to 47.3%, with a notable decline in the medical consumables segment [11][19] Revenue Breakdown - The medical consumables accounted for 43.5% of total revenue in 2024, with a significant contribution from the acquisition of GRI [7] - The consumer goods segment represented 55.6% of total revenue in 2024, with strong growth in online and offline sales channels [9][10] Future Projections - The company forecasts revenues of 11.17 billion yuan in 2025, with a growth rate of 24.4%, and a net profit of 1.02 billion yuan, reflecting a growth rate of 46.6% [14] - The projected EPS for 2025 is 1.75 yuan, with a P/E ratio of 30 [14][19]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative return of over 20% within the next six months [6][17]. Core Insights - The company reported a revenue of 2.6 billion in Q1 2025, a year-on-year increase of 36%, with a net profit attributable to the parent company of 250 million, also up 36%. The adjusted net profit was 230 million, reflecting a 62% increase [1]. - For the year 2024, the company anticipates a revenue of 9 billion, a 10% increase, and a net profit of 700 million, a 20% increase, with adjusted net profit expected to reach 600 million, up 43% [1]. - The medical consumables segment generated 3.9 billion, accounting for 44% of total revenue, with a slight increase of 1% and a gross margin of 36.49%, down 4 percentage points. The consumer goods segment generated 5 billion, accounting for 56% of total revenue, with a 17% increase and a gross margin of 56%, down 1 percentage point [1]. - The report highlights strong growth in key product categories, particularly in the medical segment, with surgical consumables and high-end dressings seeing significant revenue increases of 196.8% and 21%, respectively [2]. Financial Performance Summary - The company expects to achieve net profits of 1.04 billion, 1.26 billion, and 1.5 billion for the years 2025, 2026, and 2027, respectively, with corresponding EPS of 1.79, 2.17, and 2.58 [4]. - The projected revenue growth rates for the years 2025 to 2027 are 24.8%, 23.5%, and 20.1%, respectively [5]. - The company’s total assets are projected to reach approximately 22.26 billion by 2025, with total liabilities expected to be around 9.72 billion [12]. Market Position and Strategy - The company is focusing on enhancing its core product categories and improving its market ranking through effective brand marketing, particularly for its "Nai Si Gong Zhu" product line, which has seen significant growth [3][2]. - The report notes that the company has successfully increased its market presence in e-commerce channels, contributing to nearly 60% of the consumer goods segment's revenue in Q1 2025 [2].