Incident: The company released its 2024 semi-annual report. 2024H1 achieved operating income of 0.159 billion yuan, an increase of 12.40% year on year; net profit to mother of 0.063 billion yuan, up 4.15% year on year; net profit after deducting non-return to mother of 0.062 billion yuan, up 3.63% year on year.

Comment:

Revenue grew steadily, and the net profit growth rate was affected by the transformation: in the first half of 2024, the company achieved operating income of 0.159 billion yuan, an increase of 12.40% year on year; realized net profit to mother of 0.063 billion yuan, an increase of 4.15% year on year; realized net profit after deduction of 0.062 billion yuan, an increase of 3.63% year on year. Affected by factors such as depreciation and increased amortization expenses due to the completion of the Daxing base project and carry-over of fixed assets, the net profit growth rate was lower than the growth rate of operating income.

R&D investment continues to increase, and coagulation diagnostic products continue to be launched: in the first half of 2024, the company invested 10.2986 million yuan in R&D, an increase of 15.59% over the previous year, accounting for 6.48% of revenue. As of June 30, 2024, the company has 42 patents, of which 14 are invention patents. In 2024, SMART-8800, a coagulation line product independently developed by the company, was put on the market. With a high-speed coagulation analyzer, it can meet the high-throughput needs of coagulation tests in terminal medical institutions.

Technical services promote product admission, and product participation expands brand influence: The company promotes the improvement of clinical departments' awareness of thrombosis and hemostasis by strengthening professional capacity building in the service system, strengthening coagulation technology service capacity building, etc. Various advanced equipment such as the SMART-8800 fully automatic assembly line and the SF-9200 fully automatic coagulation analyzer were exhibited at the 13th NCCLab & CCLab; coagulation analysis solutions, blood flow analysis solutions, and blood sedimentation analysis solutions were exhibited at CCLM to expand the brand influence through product exhibition.

Profit forecast, valuation and rating: We maintain the 24-26 net profit forecast of 0.141/0.17/0.206 billion yuan. The current price corresponds to the 24-26 PE of 17/14/12 times. The company is a leading enterprise in the domestic in vitro diagnostic industry in the field of blood coagulation. We are optimistic that the company will accelerate domestic replacement in the field of blood coagulation and maintain the company's “buy” rating.

Risk warning: Single risk of main business, risk of new product development and launch falling short of expectations, exchange risk, risk of increased market competition, risk of product price reduction due to health insurance fee control.