Deeply involved in in vitro diagnosis, refers to platform-based IVD companies. Since its establishment in 1994, Dirui Medical has been deeply involved in the field of in vitro diagnosis, achieving a closed loop of R&D, production, marketing, and system. The products have further expanded from urine testing and biochemical testing systems to other IVD categories. Currently, the products cover more than 80% of laboratory testing projects, mainly including urine analysis, biochemical analysis, chemiluminescence immune analysis, gynecological discharge analysis, blood cell analysis, coagulation analysis, and integrated laboratory series, providing integrated solutions for laboratories and long-term positioning of platform-based IVD companies.
China Resources joined, and business empowerment was beginning to bear fruit. China Resources joined in 2020, and Dirui became the only in vitro diagnostic brand in the China Resources system. Based on the 14th Five-Year Plan strategy, the product side built diversified development, and the competitiveness of new products such as luminescence, gynecology, and assembly lines continued to improve; the domestic China Resources Group's China Resources Medical and China Resources Health helped all series of Dirui products quickly enter the hospital, and overseas localization management entered the 2.0 era, focusing on key countries. Marketing, warehousing, and after-sales promote the localization process in an orderly manner. Business enablement results are gradually showing, and we have entered a stage of rapid development.
The equipment is growing steadily, and the reagents are expected to enter the release period. The company achieved revenue of 1,378 billion yuan in 2023, up 12.95% year on year, with net profit of 276 million yuan, up 5.30% year on year, of which equipment side revenue was 821 million yuan, up 19.89% year on year, and continued to grow steadily; reagent side revenue was 550 million yuan, up 4.62% year on year. It is in the climbing stage of new installed equipment. As biochemical collection is gradually implemented, the revenue share of luminescent products has increased, and assembly line stock is expected to enter the release cycle.
Profit forecasting and valuation. We expect the company's total revenue for 2024-2026 to be 24.11 billion yuan, 28.38 billion yuan, and 3.410 billion yuan respectively, with growth rates of 74.97%, 17.71%, and 20.14% respectively; net profit to mother for 2024-2026 will be 451, 5.80, and 720 million yuan, respectively, with growth rates of 63.62%, 28.66%, and 24.12% respectively. The PE corresponding to the current stock price is 15x, 12x, and 10x, respectively. Mindray Healthcare, New Industry, and Antu Biotech were selected as comparable companies. The comparable company's average PE in 2024 was 25 times. Based on the gradual maturity of the company's chemiluminescence and assembly line business layout, the reagents grew steadily, and covered for the first time, giving a “buy” rating.
Risk warning. Industry competition increases risks, domestic policy risks, and mergers and acquisitions falling short of expectations.