Lifotronic(688389) 东方证券·2024-08-29 07:51Investment Rating - The report maintains a "Buy" rating for the company with a target price of 17.10 RMB, based on a 18x PE multiple for 2024 [2][5] Core Views - The company achieved sustained revenue growth in H1 2024, with total revenue reaching 590 million RMB, a 5.6% YoY increase, driven by sales of in-vitro diagnostic instruments and skin medical aesthetic devices [1] - In H1 2024, the in-vitro diagnostic business contributed 468 million RMB, accounting for 79.4% of total revenue, while the treatment and rehabilitation business generated 114 million RMB, representing 19.4% of total revenue [1] - Net profit attributable to shareholders increased by 27.8% YoY to 172 million RMB in H1 2024, supported by improved product mix with higher-margin products [1] - The company's gross margin reached 69.82% in H1 2024, a 4.6 percentage point increase YoY [1] Financial Performance - Revenue is projected to grow from 1.146 billion RMB in 2023 to 2.111 billion RMB in 2026, with a CAGR of 22.6% [4] - Net profit attributable to shareholders is expected to increase from 329 million RMB in 2023 to 647 million RMB in 2026, with a CAGR of 25.3% [4] - The company's ROE is forecasted to rise from 20.3% in 2023 to 24.3% in 2026 [4] - EPS is projected to grow from 0.77 RMB in 2023 to 1.51 RMB in 2026 [4] Product Innovation - The company launched two new in-vitro diagnostic products in H1 2024: the LifoLas 8000 automated electrochemiluminescence immunoassay system and the LifoLas 9000 laboratory automation system [1] - In the treatment and rehabilitation segment, the company upgraded its high-flow medical respiratory humidifier with CPAP mode and improved the safety of its semiconductor laser hair removal device [1] Market Expansion - Domestic revenue reached 429 million RMB in H1 2024, a 1.6% YoY increase, while international revenue grew by 18.3% YoY to 161 million RMB [1] - The company established subsidiaries in Russia and Indonesia to enhance its overseas operations, with products exported to over 100 countries [1] Valuation - The company's PE ratio is expected to decline from 16.9x in 2023 to 8.6x in 2026, indicating potential undervaluation [4] - The PB ratio is projected to decrease from 3.1x in 2023 to 1.9x in 2026 [4]