The company's respiratory triad home self-test OTC products were authorized by the US FDA EUA and issued an announcement on May 5. Its US subsidiary's novel coronavirus, influenza A virus, and influenza B triple home test kit (OTC version) has recently obtained emergency use authorization (EUA) from the US FDA. This is another major development after the company's respiratory trifecta POC professional testing product was approved by the FDA EUA on April 19. The products approved by the company this time are for OTC self-testing. They can be sold through e-commerce, pharmacies, supermarkets and other channels in the US, and patients can purchase them without a prescription to independently qualitatively test and differentiate influenza A B and COVID-19 infections. We are optimistic about the subsequent sales performance of this product. We maintain our profit forecast and expect EPS of 1.38/1.80/2.29 yuan for 24-26. The company is a leader in the domestic POCT field. The product range is diverse and commercial promotion continues to make efforts. The company was given 28x PE for 24 years (comparable to the company Wind's consistent expected average value of 25x), adjusted the target price to 38.59 yuan (previous value 30.32 yuan), and maintained a “buy” rating.

We are optimistic about the subsequent sales performance of the company's respiratory trifecta in the US market. We are optimistic about the subsequent sales performance of the company's respiratory triple test products in the US market, based on: 1) High product approval: Although symptoms of influenza A or COVID-19 infection are similar, the FDA has specially opened an EUA channel to speed up product approval in response to the high incidence of seasonal respiratory infectious diseases in the US, which shows that the regulatory authorities highly recognize this type of product. We are optimistic that it will become a routine testing method for the US respiratory infectious disease epidemic season. 2) The company has a wide range of product sales channels: This product is the first similar product approved by the US FDAEUA in China. We are optimistic that it will be quickly released through the company's perfect sales channels in the US. 3) There are many application scenarios for the company's products: Considering that the company's POC professional version and OTC self-test products have been approved, we are optimistic that they will achieve comprehensive coverage of in-hospital and out-of-hospital OTC and possible government procurement scenarios in the US.

We are optimistic that the company's endogenous conventional business will maintain an upward trend for 24 years. We are optimistic that the company's regular business will maintain rapid growth within 24 years, including: 1) Domestic conventional business:

Considering the continuous increase in demand for respiratory testing and the further expansion of the superposition luminescence business, etc., I am optimistic that the company's domestic routine business revenue will achieve a year-on-year increase of more than 20%; 2) International department business: considering the continuous promotion of the company's international department's core fluorescence business and active expansion of new products such as chemiluminescence and blood gas, etc., I am optimistic that the company's international department's revenue will achieve a year-on-year increase of about 30% in 24 years; 3) US subsidiary business: considering the continuous release of new products such as hair toxicity testing and pet testing, etc., I am optimistic that the US subsidiary will achieve a year-on-year increase in revenue over 24 years 20% YoY growth.

Risk warning: Sales of core products do not meet expectations, and there is a risk of price reduction in tenders for core products.