Shenzhen YHLO Biotech (SH:688575) Guotou Securities·2024-09-02 00:03Investment Rating - The report maintains a "Buy-A" investment rating for the company with a 6-month target price of 25.45 CNY, compared to the current stock price of 20.36 CNY as of August 30, 2024 [10][12]. Core Insights - The company reported a significant growth in its chemiluminescence business, with a revenue increase of 48.5% year-on-year, contributing to a total revenue of 9.60 billion CNY, despite an overall decline of 10.7% [3][6]. - The gross profit margin improved to 61.9%, up 12.6 percentage points year-on-year, indicating effective cost management and operational efficiency [4][11]. - The company achieved a net profit of 1.73 billion CNY, reflecting a year-on-year increase of 22.3%, with a notable improvement in net profit margin to 18.0% [3][4]. Summary by Sections Financial Performance - In the first half of 2024, the company generated a total revenue of 9.60 billion CNY, with non-COVID related business revenue at 7.90 billion CNY, marking a 43.9% increase [3]. - The second quarter alone saw a revenue of 5.29 billion CNY, representing a 27.4% increase, with non-COVID business revenue growing by 31.86% [7]. - The company’s net profit for Q2 was 1.07 billion CNY, a substantial increase of 77.5% year-on-year [7]. Business Segments - The chemiluminescence segment continued its rapid growth, with key products like routine projects and self-immune luminescent reagents showing sales increases of 52.48% and 46.23% respectively [6]. - The domestic market for non-COVID self-produced business grew by 42.7%, with significant installations in major hospitals [6][10]. Market Expansion - The company is focusing on enhancing its overseas market presence, with a 52.3% year-on-year growth in non-COVID self-produced business and the establishment of new service points in Southeast Asia and Cairo [10][11]. - The introduction of the iTLAMax production line, capable of processing 1200 sample tubes per hour, is expected to enhance the company's capabilities in serving large hospitals and support domestic substitution [6][10]. Future Outlook - The report forecasts revenue growth of 12.6%, 27.7%, and 23.3% for 2024, 2025, and 2026 respectively, with net profit growth projected at 35.8%, 34.3%, and 30.0% for the same years [12].