Kingmed Diagnostics(603882) 中国银河·2024-09-04 14:00Investment Rating - The report maintains a "Recommend" rating for the company [6] Core Views - The company's profitability rebounded in Q2 2024, with a significant improvement in operating conditions compared to Q1 2024 [1] - Revenue growth is expected to turn positive starting from Q3 2024, driven by lower growth base, industry consolidation, and optimized competitive landscape [1] - The impact of credit impairment provisions on the company's performance is expected to gradually diminish [1] - The company is leveraging technological innovation and digital transformation to enhance efficiency and quality, with 92 new projects launched in H1 2024 and over 4,000 testing items available [2] Financial Performance - In H1 2024, the company reported revenue of RMB 3.881 billion (-9.92% YoY), net profit attributable to shareholders of RMB 90 million (-68.53% YoY), and operating cash flow of RMB 34 million (-90.31% YoY) [1] - In Q2 2024, revenue was RMB 2.040 billion (-6.91% YoY), with net profit attributable to shareholders of RMB 108 million (-19.92% YoY) and operating cash flow of RMB 173 million (+28.99% YoY) [1] - The company's gross margin in Q2 2024 improved to 37.17%, up 5.08 percentage points QoQ [1] - Excluding the impact of credit impairment provisions, the company's net operating profit margin in Q2 2024 was 11.84% [1] Technological Innovation and Digital Transformation - The company launched 92 new projects in H1 2024, covering key disease areas such as kidney, infection, neurology, hematology, and endocrinology [2] - The company has developed a medical testing industry large model application called "Xiao Yu Yi" and is actively exploring the construction of a medical testing data element infrastructure [2] - The company has automated access and cleaning of medical testing data, with a total volume exceeding 23PB, including over 12PB of gene sequencing results [2] Financial Forecasts - The report forecasts the company's revenue for 2024-2026 to be RMB 8.134 billion, RMB 9.293 billion, and RMB 10.503 billion, respectively [7] - Net profit attributable to shareholders is expected to be RMB 609.69 million, RMB 905 million, and RMB 1.209 billion for 2024-2026, respectively [7] - EPS for 2024-2026 is projected to be RMB 1.30, RMB 1.93, and RMB 2.58, respectively [7] - The current stock price corresponds to a PE ratio of 21x, 14x, and 10x for 2024-2026 [6]