Key points of investment:

The company released its 2024 semi-annual report, and performance growth was in line with expectations.

24H1's revenue was 2.21 billion yuan (+18.5%), net profit due to mother 0.9 billion yuan (+20.4%), after deducting non-0.87 billion yuan (+26.4%).

Single Q2 revenue was 1.19 billion yuan (+20.2%), net profit attributable to mother 0.48 billion yuan (+20.8%), after deducting non-0.47 billion yuan (+27.1%).

The domestic growth rate improved month-on-month, and overseas growth was stable and high.

24H1's domestic revenue was 1.41 billion yuan, +16.30% year-on-year, of which reagent revenue was +18.54%. 24H1's overseas revenue was 0.796 billion yuan, +22.79%, of which reagent revenue was +29.11%.

As the share of sales of X series and medium to large light-emitting instruments increased, the gross margin of the company's instruments increased to 32.11% (+2.46pct), of which the gross margin of overseas instruments increased to 39.95% (+6.31pct).

Looking at Q2 alone, the Q2 gross profit margin was 71.56% (-2.06pct), and the sales/management/R&D expenses ratio was 14.7%/2.4%/8.7%, -5.63pct/-1.15pct-0.33pct, respectively.

The installation trend is improving, and large-scale instruments continue to break through

In terms of installed capacity, up to 24H1 Company X8 has sold 3,170 units at home and abroad.

The number of 24H1 domestic chemiluminescence installations was 796, accounting for 75.13% of the installed large-scale machines. At the same time, the number of tertiary hospitals served increased by 101 compared to the end of 2023.

Overseas: 2024H1 sold a total of 2,281 chemiluminescence instruments, increasing the proportion of medium to large to 64.80% (+10.07pct) of installed capacity and structural optimization, laying a solid foundation for high growth overseas.

Profit forecasting and investment advice

Disturbed by multiple factors in the industry, the revenue growth rate is steady, the company's expenses are properly controlled, and profit performance is impressive. We expect that short-term fluctuations in industry policies will still be affected. The company's EPS for 2024-2026 was 2.6/3.3/4.1 yuan (previous value 2.7/3.4/4.3 yuan). Based on the closing price on September 2, 2024, the corresponding PE is 25/20/16 times. The new industry is a leading domestic chemiluminescence enterprise, leading the industry by going overseas and maintaining a “buy” rating.

Risk warning

Competition increases risk, policy risk, exchange rate fluctuation risk, risk of new product development and promotion falling short of expectations, risk associated with registration and certification