Incidents. The company released its 2024 three-quarter report. In the first three quarters, it achieved revenue of 3.414 billion yuan (yoy +17.41%, same below), net profit of 1.384 billion yuan (yoy +16.59%), net profit not attributable to mother of 1.331 billion yuan (yoy +20.80%), including revenue of 1.203 billion yuan (yoy +15.38%) for the first three quarters, net profit to mother of 0.48 billion yuan (yoy +10.02%), net profit not to mother Profit 0.463 billion yuan (yoy +11.62%).

The installed level is impressive, and the overseas market continues to grow rapidly. In the first three quarters of 2024, the company's domestic revenue increased 13.60% year on year, and overseas market increased 25.16% year on year; reagent revenue increased 17.93% year on year, instrument revenue increased 16.27% year on year; 795 new domestic and foreign X8 instruments were installed and sold, with a total of 3,448 installed units. The company's new T8 product line achieved 30 installations/sales. Medium and large machines continued the company's policy and promoted in an orderly manner, and the pace of promotion of the new T8 product exceeded expectations.

The gross margin was slightly adjusted to increase the continuous iteration of research and development of new products. In the first three quarters of 2024, the company's gross margin was 72.34%, adjusted from 2023 (72.96%) and the first half of 2024 (72.61%). It is expected that the company will adjust domestic instrument promotion policies, increase the progress of product admissions in the policy context, and consolidate the terminal foundation for subsequent potential collection of reports.

During the same period, sales expenses were 0.522 billion yuan (yoy +7.99%), and R&D expenses were 0.327 billion yuan (yoy +20.69%). The company focused on long-term development, continued to increase R&D investment, and launched competitive new products such as T8 assembly lines.

Profit forecast and rating: We expect the company's 2024-2026 revenue to be 4.679/5.66/6.8 billion yuan, respectively, with year-on-year growth rates of 19.08%/20.96%/20.13%, and net profit to mother of 1.968/2.396/2.887 billion yuan, respectively. The year-on-year growth rates are 19.02%/21.76%/20.48%, respectively, and PE corresponding to the current stock price is 27/22/18 times, respectively. Based on the company's perfect layout in the chemiluminescence industry, the reagents gradually entered the release stage and maintained a “buy” rating.

Risk warning. Overseas geopolitical risks, domestic policy risks, and industry competition exacerbate risks.