occurrences
The company released its 2024 semi-annual report. In the first half of 2024, it achieved revenue of 0.717 billion yuan, a year-on-year increase of 67.63%; realized net profit of 0.157 billion yuan, an increase of 70.93% over the previous year; and realized net profit deducted from non-mother of 0.121 billion yuan, an increase of 288.48% over the previous year.
Outstanding performance
2024H1 achieved revenue of 0.717 billion yuan (yoy +68%), of which Q1 revenue was 0.391 billion yuan (yoy +100%), and Q2 revenue was 0.326 billion yuan (yoy +40%), mainly due to the high respiratory disease infection rate in winter, which led to an increase in overall testing demand. 2024H1's respiratory business revenue is basically the same as the full year of 2023. At the same time, the company actively lays out molecular diagnosis of other diseases, including maternal and child health, blood-borne infectious diseases, etc., to provide overall clinical solutions.
Continue to increase investment in R&D
2024H1's gross margin was 77.27% (+10.53pp), and the net profit margin was 18.92% (-2.34pp). The net margin decline mainly contributed to net profit from government subsidy funds and interest on bank savings in the same period last year, with a high base.
There was a slight decrease in all three fees. Among them, the sales expenses ratio was 31.18% (-4.92pp), the R&D expenses ratio was 16.40% (-4.77pp), and the management expenses ratio was 16.57% (-1.15pp). 2024H1 invested 0.145 billion yuan in R&D, a year-on-year increase of 41.77%. 2024H1 has obtained 72 new patents and software copyrights, and a series of electrochemiluminescence platform products such as myocardial and inflammation have already entered the market.
Profit Forecasts, Valuations, and Ratings
As clinical attention is paid to respiratory disease testing, the detection penetration rate is expected to continue to increase, while the company's profitability continues to improve. We expect the company's revenue for 2024-2026 to be 1.533/2.036/2.533 billion yuan, respectively, +52%/+33%/+24% year over year; net profit to mother will be 0.302/0.48/0.616 billion yuan, respectively, with year-on-year growth rates of -17%/59%/28%, respectively. EPS was 0.52/0.82/1.06 yuan respectively. Based on the company's outstanding respiratory business performance and impressive assembly line installed performance, it is expected to maintain rapid growth and maintain a “buy” rating.
Risk warning: marketing falls short of expectations, new product development falls short of expectations, geopolitical risks