Key points of investment:

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

24Q1-3's revenue was 3.41 billion yuan (YoY +17.4%) and net profit to mother was 1.38 billion yuan (+16.6% YoY).

Looking at Q3 alone, the company's revenue was 1.2 billion yuan (YoY +15.4%), and net profit to mother was 0.48 billion yuan (+10.0% YoY)

Domestic performance is growing steadily, and overseas growth remains high

24Q1-3 Domestic Revenue +13.6% YoY, Overseas Revenue +25.2% YoY. By type, Q1-3 reagent +17.9%, instrument +16.3%. Q3 gross profit margin 71.85%, -2.51 pct year over year, +0.3 pct month over month. Sales/management/R&D expenses were 15.7%/2.6%/10.2%, +0.55pct/-0.58pct/+0.71pct, respectively.

Installed equipment maintains a positive trend, and medium and large instruments continue to break through

In terms of installed capacity, the 24Q1-3 X8 achieved sales and installation of 795 units, and the installation progressed steadily. As of Q3, the total number of units sold and installed at home and abroad reached 3,448 units. At the same time, as of Q3, the company has completed the sales/installation of 30 new T8 assembly lines, which have been recognized by the market. It is expected that the proportion of medium and large instruments will continue to increase, which is expected to drive continuous optimization of the customer structure and lay a solid foundation for growth at home and abroad.

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 2.5/3.0/3.7 yuan (previous value 2.6/3.3/4.1 yuan), which is 28/23/19 times the corresponding PE based on the closing price on October 29, 2024. 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