Key points of investment:
Deeply involved in the industry for more than 20 years, the layout of multiple product lines has been accelerated, and platform-based construction is beginning to take shape. At the beginning of its establishment, the company continued to develop in vitro diagnosis, and gradually built a product system based on POCT lines, using chemiluminescence, coagulation, assembly lines, and molecules as starting points. With the implementation and launch of the company's new instruments and projects, platform-based construction was gradually improved.
1) POCT line groundbreaking: The company's current POCT line has formed multi-level instrument types such as semi-automatic, fully automatic, portable and desktop assembly lines. Among them, the Getein1600 fully automatic fluorescence immunoassay analyzer has maintained a stable installation speed of about 900-1100 units/year in laboratory departments, emergency departments, cardiology departments, and chest pain centers in grade hospitals since its launch, thanks to its advantages of fast measurement speed, high throughput, and stable performance.
2) Chemiluminescence barrier: The company has a differentiated competitive advantage in special projects such as cardiovascular testing and inflammation testing. The company's high-sensitivity troponin (hs-cTnI) testing performance has reached the leading international level, and the inflammation testing program can simultaneously support the four inflammatory tests (IL-6, PCT, CRP, SAA) and dual inflammatory tests (IP, CS) whole blood, serum plasma, and peripheral blood tests. The company is also continuing to develop high-throughput instruments. According to the company's announcement, an ultra-high-speed large-scale chemiluminescence analyzer with a stand-alone test speed of 800 tests/hour is expected to be launched this year.
3) Blood coagulation line addition: The company officially entered the blood clotting circuit through epitaxial mergers and acquisitions to make up for the lack of corresponding product lines and accelerate the enrichment and improvement of corresponding instruments and reagents. Currently, it has more than 10 research projects such as blood clotting lines, antiphospholipid antibody testing technology, coagulation factors, and protein S.
4) Initial prototype of platform-based construction: The company now has different assembly line combinations such as birth control and blood cells, which can meet the customized testing needs of large hospital laboratory departments, third-party laboratories, primary hospitals, etc., and provide more and more comprehensive solutions for medical terminals.
COVID-19 is driving overseas travel, and the global layout is deepening. The company has accelerated the expansion of sales layout in overseas markets, and has set up offices in India, Bangladesh, Egypt and other countries. As of June 30, 2023, the company's overseas market business covers 126 countries and regions including Europe, Africa, the CIS, the Middle East, South Asia, Southeast Asia, Central and South America.
Profit forecast and valuation: We forecast that the company's net profit due to mother in 2023-2025 will be RMB 308/4.05/507 million, respectively, an increase of -38.4%/31.7%/25.2% over the previous year. Referring to the average PE of comparable companies, we gave the company 19 times PE in 2024, corresponding to a reasonable market value of 7.7 billion yuan. Currently, the market value is 5.6 billion yuan, and there is still room for 37% growth. With the launch of the company's new products and the construction of a platform, it was covered for the first time and given a “buy” rating.
Risk warning: Business promotion falls short of expectations; industry competition intensifies; IVD collection prices are reduced.