Gelonghui Sept. 7 | Puyin International issued a research report to maintain Yunkang's "buy" rating, as COVID-19 detected clearance faster than we had expected, with a target price of HK $17.20. According to the research report, Yunkang Group earned RMB 480 million in the first half of 2023, of which the core non-COVID-19 testing income was + 28%. The net profit is 48.72 million yuan and the gross profit is 38.1%. The bank believes that ICL has cost and efficiency advantages, short-term performance disturbance does not change long-term growth potential, COVID-19 epidemic to a certain extent accelerated the improvement of ICL penetration. The company 1H23 launched a special plan to reduce costs and increase efficiency, and it is expected that the future gross profit margin will gradually increase on the basis of 1H23. The bank believes that for Yunkang, the market share of companies in southwest and central China is relatively low, and the growth space can be broadened by increasing hospital coverage and in-hospital departments and testing programs, while for South China, which has a higher market share, it will mainly expand the depth of clinical coverage to gain room for growth. in the short term, we expect the company's core non-COVID-19 business to earn 2022-25e CAGR. In addition, the bank said that COVID-19 's receivables are mostly concentrated in developed areas, and the overall risk is controllable. At the end of 1H23, the company's accounts receivable was 1.94 billion yuan, and the current refund was 970 million yuan. As the company's accounts receivable are mainly concentrated in the Greater Bay area, Shanghai and other relatively well-off areas, the impairment risk of receivables is expected to be relatively controllable.