Recently, the company released the 2019 annual report, during the reporting period, the company achieved operating income of 2.414 billion yuan (+ 21.32%), net profit of 202 million yuan (- 2.55%), and non-return net profit of 184 million yuan (+ 4.47%). At the same time, the company released its quarterly report for 2020, with operating income of 537 million yuan (+ 6.13%), net profit of 49.9964 million yuan (+ 0.84%) and non-return net profit of 46.2504 million yuan (- 3.85%) during the reporting period.

Profit forecast and rating: as one of the leading companies in the domestic IVD industry, the company has a wide range of products, sound sales network, and insists on two-wheel drive of instruments and reagents for a long time. It is one of the few companies in China that have fully automatic and flexible flux detection system solutions and supply capacity in molecular, biochemical and immune fields. The company continues to distribute the Chaoyang business sector (chemiluminescence, molecular diagnostics, overseas business) through "independent research and development + mergers and acquisitions". With the launch of new products, the company is expected to usher in a recovery of endogenous growth. We adjust our profit forecast for the company and expect the company's EPS to be 0.44,0.51 and 0.61 yuan respectively from 2020 to 2022, and the share price corresponding to PE at 37, 32 and 27 times on April 30, 2020, respectively, maintaining the "prudent overweight" rating of the company.

Risk tips: uncertain risk of epidemic progress; product sales are not as expected; competitive risk; new product research and development risk; goodwill impairment risk.