LIVZON GROUP(SZ:000513) Soochow Securities·2024-08-23 10:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported strong performance in the hormone, psychiatric, and diagnostic reagent segments, with overall results meeting expectations [3] - The company is expected to achieve revenue of 131.4 billion, 139.7 billion, and 148.3 billion for the years 2024, 2025, and 2026 respectively, with net profits of 21.9 billion, 25.0 billion, and 28.3 billion for the same years [4] Financial Performance Summary - For the first half of 2024, the company achieved revenue of 62.82 billion (down 6.1% year-on-year) and a net profit of 11.71 billion (up 3.21% year-on-year) [3] - The revenue for Q2 2024 was 30.40 billion (down 7.2% year-on-year), with a net profit of 5.63 billion (up 1.9% year-on-year) [3] - The chemical preparation segment generated revenue of 32.24 billion (down 7.4% year-on-year), with notable growth in the hormone sector at 15.49 billion (up 12.5% year-on-year) [3] - The diagnostic reagents and equipment segment saw revenue of 3.94 billion (up 32.3% year-on-year), capitalizing on increased demand for flu and respiratory products [3] Earnings Forecast and Valuation - The company maintains its earnings forecast, expecting a diluted EPS of 2.37, 2.70, and 3.06 for 2024, 2025, and 2026 respectively [4] - The current P/E ratios are projected to be 15, 13, and 12 for the years 2024, 2025, and 2026 respectively, indicating a favorable valuation [4] - The report highlights the potential for high-end formulations and biopharmaceutical pipelines to contribute significantly to sales, with peak sales estimates for various products reaching up to 65 billion [4]