[中信主题策略刘易团队] - '全球竞争力出海' Theme [英科医疗 300677] As Market Style Rebalances, Focus on Low-Position High-Alpha Stocks, 英科医疗's Per-Unit Net Profit Remains High

English summary

Amid market style rebalancing, we believe the company's strong alpha attribute is expected to gradually bring valuation recovery, mainly reflected in: 1. #Current performance and subsequent per-unit profitability are expected to beat market expectations. The interim operating profit is expected to increase significantly both YoY and QoQ, mainly due to the substantial rise in glove prices in Q2, and the company's cost increase is much smaller than peers, thus achieving higher excess profit. Although spot prices have fallen since July, the company's per-unit net profit is still more than double pre-war levels, mainly because the company produces its own latex and costs are mainly anchored to butadiene, with faster cost declines. Based on current scheduling for August-September, although prices have declined (mainly due to further cost declines), per-unit net profit remains at a high level. 2. #Continuous cost reduction capabilities are gradually being validated. Tracking shows that over the past year, the company's cost advantage has further widened against peers, mainly due to: on the one hand, costs of newly invested overseas capacity are significantly lower than domestic, mainly benefiting from further improvements in new-generation line speed, as well as advantages in labor costs, energy costs, etc.; ...