Core Viewpoint - The company is expected to recover growth starting from 2025 as the impact of customer inventory reduction diminishes, leading to significant increases in shipments and revenue growth in response to recovering customer demand [3]. Group 1: Financial Performance - In 2024, the company is projected to achieve operating revenue of 443 million, a year-on-year decrease of 5.90%, and a net profit attributable to the parent company of 135 million, down 7.11% year-on-year [3]. - In Q1 2025, revenue is expected to grow by 24.9% year-on-year and 18.3% quarter-on-quarter as customer inventory levels decrease and the impact of destocking weakens [3]. Group 2: Product Development and Market Position - The second-generation 4K endoscope system began mass production and sales in 2024, showing accelerated growth in the domestic market with positive market feedback [4]. - The company is continuously developing a full range of products (cameras, light sources, various scopes) and actively developing ancillary products such as cutting and electrosurgical instruments to enhance its product matrix and market competitiveness [4]. Group 3: Research and Development Investment - In 2024, the company invested 54 million in R&D, accounting for 12.23% of its operating revenue, demonstrating strong technological innovation capabilities and market competitiveness [5]. - The company has launched several new endoscope products in the U.S. market, including a new 4mm hysteroscope and has completed product registration for various laparoscopes in the domestic market [5][6].

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The impact of inventory destocking has weakened, and the company is expected to recover in Q2 2024, with a projected revenue of 443 million yuan in 2024, a decrease of 5.90% year-on-year, and a net profit of 135 million yuan, down 7.11% year-on-year [1] - The sales of the new generation endoscope systems to major clients continue to grow, and as the destocking effect diminishes, the company is expected to see significant revenue growth in 2025, with a projected revenue increase of 24.65% [3] - The company has accelerated the commercialization of its endoscope systems and is actively developing peripheral products to enhance its product matrix and market competitiveness [1][2] Summary by Sections Revenue and Profit Forecast - The company’s revenue is projected to be 471 million yuan in 2023, decreasing to 443 million yuan in 2024, with a subsequent increase to 552 million yuan in 2025 and 669 million yuan in 2026 [4] - The net profit forecast for 2024 is 135 million yuan, with an increase to 185 million yuan in 2025 and 222 million yuan in 2026 [4] Research and Development - In 2024, the company’s R&D investment is expected to be 54 million yuan, accounting for 12.23% of its revenue, showcasing strong technical innovation capabilities [2] - The company has launched several new endoscope products in the U.S. market and has completed product registration for various endoscopes in the domestic market [2] Valuation Metrics - The projected P/E ratios for the company are 39 for 2023, 42 for 2024, 30 for 2025, 25 for 2026, and 21 for 2027 [4][11] - The projected net profit growth rates are -20.19% for 2023, -7.11% for 2024, 36.77% for 2025, 19.76% for 2026, and 21.09% for 2027 [4][11]