DIRUI(SZ:300396) Guotai Junan Securities·2024-08-31 04:38Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company has a complete product line, and domestic market efforts to strengthen distributor inventory management are expected to lead to increased reagent sales in the future. The international market is currently under pressure due to product registration and inventory cycle adjustments, but recovery is anticipated [2][3] - The earnings forecast for 2024-2026 has been adjusted downwards to CNY 1.28, CNY 1.54, and CNY 1.85 per share, respectively, from previous estimates of CNY 1.55, CNY 1.87, and CNY 2.28. The target price has been lowered to CNY 20.48, based on a PE ratio of 16x for 2024 [3][4] Financial Summary - Revenue for 2022 was CNY 1,220 million, with projections of CNY 1,378 million for 2023, CNY 1,805 million for 2024, CNY 2,137 million for 2025, and CNY 2,507 million for 2026, reflecting growth rates of 34.7%, 13.0%, 31.0%, 18.4%, and 17.3% respectively [2] - Net profit attributable to the parent company was CNY 262 million in 2022, expected to rise to CNY 276 million in 2023, CNY 350 million in 2024, CNY 421 million in 2025, and CNY 504 million in 2026, with growth rates of 24.7%, 5.3%, 26.9%, 20.5%, and 19.7% respectively [2] - The earnings per share (EPS) is projected to be CNY 0.96 for 2022, CNY 1.01 for 2023, CNY 1.28 for 2024, CNY 1.54 for 2025, and CNY 1.85 for 2026 [2] - The return on equity (ROE) is expected to be 13.6% in 2022, slightly decreasing to 13.5% in 2023, and then increasing to 16.0%, 17.6%, and 19.0% in 2024, 2025, and 2026 respectively [2] Market Performance - The company reported a revenue of CNY 878 million for the first half of 2024, representing a year-on-year increase of 26.38%. However, the second quarter saw a decline in revenue to CNY 216 million, down 40.57% [3] - The domestic market revenue for the first half of 2024 was CNY 695 million, up 54.23%, while the international market revenue was CNY 181 million, down 25.11% [3]