Matters:
The company released its quarterly report for '24, with operating income of 1,021 million yuan (+16.62%), net profit of 426 million yuan (+20.04%) to mother, deducting non-net profit of 399 million yuan (+25.49%).
Commentary:
Q1 The international business continues to advance, and the reagent business continues to grow rapidly. By region, the main business revenue in the domestic market increased by 12.17% year on year in Q1; the main business revenue in the overseas market increased by 24.95% year on year. By product type, Q1's reagent revenue increased 26.42% year on year, and instrument product revenue decreased by 3.86% year on year. Q1 A total of 220 MAGLUMI X8 units were saled/installed in domestic and foreign markets, and it is expected that the proportion of large machines installed will continue to increase throughout the year.
The increase in gross margin has benefited from the increase in the share of reagents. The overall gross margin of the 24Q1 company increased to 73.84% (+5.16pct), which is expected to be due to an increase in the share of the high-margin reagent business. 24Q1 The company's sales expense ratio was 15.61% (+1.31pct), the management expense ratio was 2.87% (+0.49pct), the R&D expense ratio was 9.93% (+0.43pct), and the net profit margin to mother was 41.73% (+1.19pct)? The new assembly line was launched domestically, and the small molecule sandwich reagent and X3 were approved by the FDA. On March 16, the new generation laboratory assembly line SATLARS T8 and the intelligent management software iXLab were officially launched. The SATLARS T8 has ultra-efficient sample processing and orbital transmission performance, and a multi-form in-orbit and cascade splicing design, which enhances competitiveness in high-grade hospitals. On April 11, the company's fully automatic chemiluminescence immunoanalyzer MAGLUMI X3, 25-hydroxyvitamin D determination kit (small molecule sandwich method) products obtained US FDA 510 (k) approval, which is conducive to further enhancing the overall competitiveness of the company's products in overseas markets.
Investment advice: Based on the 24Q1 results, we expect the 24-26 company's net profit to be 20.8 billion yuan, 26.5 billion yuan, and 3.34 billion yuan, respectively, up 25.5%, 27.4%, and 26.5% year-on-year, corresponding to the 24-26 EPS of 2.64, 3.37, and 4.26 yuan respectively. Referring to comparable companies, we gave the company a 30-fold valuation in 2024, corresponding to a target price of about 79 yuan.
Risk warning: 1. IVD collection price reduction exceeds expectations; 2. Overseas business expansion falls short of expectations.