occurrences

On October 30, 2024, the company released its report for the third quarter of 2024. From January to September 2024, the company achieved operating income of 1.394 billion yuan (-9.78%), net profit of 0.219 billion yuan (-23.29%), net profit of 0.208 billion yuan (+19.01%); in the single third quarter, the company achieved operating income of 0.434 billion yuan (-7.69%), net profit of 0.046 billion yuan (-68.21%), net profit of 0.046 billion yuan (+ 0.08%).

Comment:

Domestic third-quarter results were under pressure. The overseas luminescence business grew faster. From January to September 2024, the company's self-produced non-COVID-19 business achieved operating income of 1.142 billion yuan (+24.40%) and the self-produced chemiluminescence business revenue of 1.037 billion yuan (+29.15%). Among them, the autoimmune diagnosis business increased 31.41% year on year, myocardial marker diagnosis business increased 49.84% year on year, and biochemical diagnosis business increased 37.11% year on year; during the reporting period, the company's biochemical diagnosis business also achieved rapid growth, year-on-year growth. 37.11% Overall, the overseas growth rate of the light-emitting business in the first three quarters led the domestic trend: 1) The domestic light-emitting business (reagents/consumables/instruments, excluding COVID-19) revenue in the first three quarters was 0.902 billion yuan (+27.01%), which was under pressure in the third quarter, mainly due to the implementation of light-emitting collection and channel inventory adjustments. 2) Overseas markets expanded at an accelerated pace. In the first three quarters, the company's overseas luminescence business revenue was 0.134 billion yuan (+45.71%), of which revenue from self-produced luminescence reagents (including consumables) from overseas increased by 60.24% year on year.

New installations are progressing steadily, and the assembly line business has performed well

From January to September 2024, the company added 1,727 new installations of chemiluminescence instruments (2,051 units shipped out of China), 995 new installations were added in China (of which 600-speed instruments accounted for 46.43%), 732 new installations were added overseas, and new overseas installations increased 53.46% year on year (61 new overseas 300 speed instruments were installed, up 48.78% year on year); 61 new assembly lines were installed, an increase of 74.29% year on year. As of September 30, 2024, more than 9,980 self-produced chemiluminescence instruments have been installed, and more than 150 assembly lines have been installed. By the end of the three-quarter report, the company's own products covered more than 5,800 domestic medical institutions, including more than 1,630 tertiary hospitals, more than 1,230 top three hospitals, and 68.86% coverage of the top three hospitals. The company's special projects drove the admission of instruments to hospital and the logic of raising the ball. The growth rate of conventional reagents such as infectious diseases, tumor markers, and thyroid function tests showed impressive performance, and gradually became the core driving force for revenue growth.

Investment advice: Maintaining a “buy” rating

The company's 2024-2026 revenue is expected to achieve 2.021/2.353/2.704 billion yuan (2.171/2.736/3.376 billion yuan before adjustment), up -1.6%/16.5%/14.9% year on year; net profit to mother will achieve 0.37/0.52/0.7 billion yuan (adjusted 0.485/0.66/0.9 billion yuan), up 4.2%/40.6%/34.5% year on year; corresponding EPS is 0.65/0.91/1.23 yuan, corresponding PE multiples are 28/20/15X. As a scarce chemiluminescence innovative IVD enterprise in China, the short-term pressure of Q3 does not affect long-term value judgment. Maintain a “buy” rating.

Risk warning

Domestic policy risks, risks of new installations falling short of expectations, and increased risk of market competition.