Key Insights - The report highlights a strong performance in the electronics sector, particularly for companies like Sensin and Luxshare Precision, with significant revenue growth and profitability improvements expected in the coming years [2][9][14] - The medical sector, represented by Baijun Medical, is also experiencing rapid growth, driven by new product launches and a strong market demand for heart valve replacements [3][14][15] Electronics Sector - Sensin reported a 35.7% year-on-year revenue growth for 2024, with a notable reduction in losses by 65.4% to 0.4 million yuan, marking a significant turning point in Q4 2024 with a return to profitability [2][5] - The company is focusing on AI and humanoid robotics, which are expected to drive future growth, with new product developments in MEMS technology [6][7] - Luxshare Precision's revenue for 2024 reached 268.79 billion yuan, a 15.9% increase, with a net profit of 13.37 billion yuan, up 22.0% year-on-year, indicating a solid growth trajectory across its three main business segments [9][11] Medical Sector - Baijun Medical achieved a revenue of 502 million yuan in 2024, reflecting a 35.41% increase, with a net profit of 146 million yuan, up 27.02% [3][14] - The company’s Q4 performance was particularly strong, with a revenue increase of 85.04% year-on-year, driven by the successful launch of new products, including a heart valve replacement that received regulatory approval [14][15] - The company is well-positioned in the heart valve market, with a diverse product lineup addressing various patient needs, which is expected to sustain its growth momentum [15][16]

Investment Rating - The report maintains a "Buy" rating for the company, with a market price of RMB 112.65 and a sector rating of "Outperform" [2][4]. Core Insights - The company has demonstrated rapid growth, with a projected revenue of RMB 502 million for 2024, representing a year-on-year increase of 35.41%. The net profit attributable to the parent company is expected to reach RMB 146 million, up 27.02% year-on-year. The fourth quarter of 2024 saw a significant revenue increase of 85.04% year-on-year, with a net profit growth of 95.35% [4][6]. - The company is expected to maintain strong growth in the coming years, driven by the gradual launch of new products. The forecasted net profits for 2025, 2026, and 2027 are RMB 235 million, RMB 326 million, and RMB 451 million, respectively, with corresponding EPS of RMB 1.71, RMB 2.38, and RMB 3.28 [4][6]. - The company has a robust product pipeline, with several new products expected to receive approval soon, which will further accelerate growth. The R&D expenses for 2024 are projected to be RMB 151 million, accounting for 30.17% of revenue, indicating a strong commitment to innovation [4][9]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of RMB 5.02 billion, a 35.41% increase year-on-year, and a net profit of RMB 1.46 billion, up 27.02%. The Q1 2025 revenue is projected at RMB 1.00 billion, reflecting a 31.30% increase year-on-year, with net profit soaring by 290.69% [4][8]. Valuation - The adjusted profit forecasts for 2025-2027 are RMB 2.35 billion, RMB 3.26 billion, and RMB 4.51 billion, respectively. The corresponding PE ratios are projected to be 65.8, 47.4, and 34.3 times [6][8]. Market Position - The company has established a strong position in the valve market, with significant growth in its heart valve replacement and repair segment, which saw a 64.28% increase in revenue. The approval of the TAVR product is expected to further enhance the company's market presence [9].