Tellgen(SZ:300642) Huachuang Securities·2024-09-02 14:07Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 15 CNY based on a DCF model, indicating an expected outperformance of the benchmark index by 10%-20% over the next six months [1][3][15]. Core Views - The company's performance has been under pressure due to factors such as centralized procurement and a decrease in demand for high-end tumor testing, leading to a significant decline in revenue and profit [1]. - The company reported a revenue of 216 million CNY for the first half of 2024, down 21.86% year-on-year, and a net profit of 7 million CNY, down 80.97% [1]. - There was a notable improvement in Q2 2024, with revenue of 123 million CNY, a decrease of 20.48% compared to the previous year, but an increase of 31.72% quarter-on-quarter [1]. Financial Performance Summary - Total revenue for 2024 is projected to be 482 million CNY, with a year-on-year decline of 11.3%, followed by a recovery in 2025 and 2026 with expected revenues of 571 million CNY and 671 million CNY, respectively [2]. - The net profit for 2024 is estimated at 73 million CNY, down 18.4% year-on-year, with a projected increase to 90 million CNY in 2025 and 109 million CNY in 2026 [2]. - The earnings per share (EPS) are forecasted to be 0.45 CNY in 2024, increasing to 0.55 CNY in 2025 and 0.67 CNY in 2026 [2]. Market and Product Development - The company is actively expanding its overseas market presence, achieving revenue of 1.3981 million CNY from sales in countries such as Thailand, Indonesia, and Spain [1]. - The proportion of reagent sales has increased, contributing to a higher overall gross margin of 63.55%, up 2.99 percentage points [1]. - The company has installed 72 various types of instruments, covering 31 provinces and cities in China, with 69.01% of hospital clients being tertiary hospitals [1].