Lifotronic(688389) 东方证券·2024-08-29 08:03Investment Rating - The report maintains a "Buy" rating for the company with a target price of 17.10 RMB [2][5] Core Views - The company achieved revenue of 590 million RMB in H1 2024, a YoY increase of 5.6%, driven by sales of in-vitro diagnostic instruments and skin medical aesthetic devices [1] - In-vitro diagnostic business contributed 468 million RMB, accounting for 79.4% of total revenue, with a YoY growth of 21.7% [1] - Treatment and rehabilitation business generated 114 million RMB, a YoY decrease of 32.0%, accounting for 19.4% of total revenue [1] - Net profit attributable to shareholders reached 172 million RMB, a YoY increase of 27.8%, supported by a higher proportion of high-margin products [1] - Gross margin improved to 69.82%, up 4.6 percentage points YoY [1] Business Segments - The company launched new products in the in-vitro diagnostic field, including the LifoLas 8000 and LifoLas 9000 automated systems, enhancing laboratory efficiency [1] - In the treatment and rehabilitation sector, the company upgraded its clinical medical product line, introducing a CPAP mode for high-flow respiratory humidifiers and improving safety in semiconductor laser hair removal devices [1] Geographic Performance - Domestic market revenue was 429 million RMB, a YoY increase of 1.6%, while international market revenue reached 161 million RMB, up 18.3% YoY [1] - In the in-vitro diagnostic segment, domestic revenue grew by 19.4% to 319 million RMB, and overseas revenue increased by 26.9% to 149 million RMB [1] - The company established subsidiaries in Russia and Indonesia to strengthen its international presence, with products exported to over 100 countries [1] Financial Projections - Revenue is projected to grow from 1,344 million RMB in 2024E to 2,111 million RMB in 2026E, with a CAGR of 25.3% [4] - Net profit attributable to shareholders is expected to increase from 407 million RMB in 2024E to 647 million RMB in 2026E [4] - EPS is forecasted to rise from 0.95 RMB in 2024E to 1.51 RMB in 2026E [4] - Gross margin is projected to remain stable at around 66.7% to 67.4% from 2024E to 2026E [4] Valuation - The company is valued at 18x PE for 2024, based on comparable company valuations [2] - The target price of 17.10 RMB implies a potential upside from the current price of 12.95 RMB [5]