As a leader in domestic replacement of chromatographs, the company is expected to greatly benefit from the policy of localizing scientific instruments and upgrading equipment. We are optimistic that the release of the company's high-end analytical instruments will become the company's second growth curve to help accelerate performance, while extending the layout of the life science circuit to create a new impetus for long-term performance growth. Therefore, we expect the company's revenue for 2024-26 to be 979 million yuan, 12.38 billion yuan, and 1,589 million yuan, respectively, and net profit to mother of 0.81, 1.18, and 169 million yuan, respectively. First coverage, giving a “buy” rating.
Wanyi Technology: Little giant of scientific instruments. Wanyi Technology was founded in 2003 and listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange in 2020. At the beginning of its establishment, the company started with a leak detection instrument business, then laid out an environmental monitoring and laboratory analytical instrument circuit to form the three major business layouts of online monitoring, industrial testing, and analytical instruments. Starting in 2022, the company will expand the field of life sciences from its three major businesses. In 2023, online monitoring instruments, industrial testing instruments, and laboratory analytical instruments accounted for 31.51%, 58.72%, and 5.96% of the revenue respectively.
Domestic replacement of high-end chromatography urgently needs to be accelerated, and the company's high R&D investment is expected to usher in a harvest period. According to Huajing Industry Research Institute, China's chromatograph market is expected to grow to 14.7 billion yuan in 2025, with a CAGR of 6.56% in 2020-25. However, due to the late start in China and the weak ability to innovate independently, according to Hyneng Technology's prospectus, domestic liquid chromatograph imports account for about 90%, and there is a long way to go to replace domestic production.
Wanyi Technology began to lay out the laboratory analytical instrument segment in 2008. Through continuous high R&D investment for more than ten years, the company has built a high-end chromatography brand in China based on instruments such as multi-function ion chromatographs, ultra-high performance liquid chromatographs, and high-end gas chromatographs, and strives to fill the domestic gap. Looking forward to the future, the release of the company's high-end analytical instruments is expected to help accelerate the company's performance and become the company's second growth curve.
Industrial inspection+online monitoring instruments build a basic market of the company's performance. 1) Industrial testing: As a leader in domestic leak detection instruments, the company's self-developed helium mass spectrometry leak detector has reached the performance indicators of mainstream products from world-class manufacturers. In recent years, it has benefited from the boom in downstream new energy sources, and performance has accelerated. 2) Online monitoring: Short-term performance is pressured by the macroeconomic environment, and is expected to achieve slight growth with long-term support from multiple environmental protection policies.
Profit forecast: The company's revenue for 2024-26 is estimated to be 979 million yuan, 1,238 million yuan, and net profit to mother of 0.81, 1.18, and 169 million yuan, respectively. First coverage, giving a “buy” rating.
Risk warning: Environmental policy changes, government subsidy policy changes, R&D projects fall short of expectations.