Kingmed Diagnostics(SH:603882) Guolian Securities·2024-09-05 02:00Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Views - The company reported a revenue of 3.881 billion yuan in the first half of 2024, a year-on-year decrease of 9.92%. The net profit attributable to shareholders was 89.65 million yuan, down 68.53% year-on-year [10] - The company experienced a quarter-on-quarter improvement in performance, with a significant growth in high-end testing services, which accounted for 54% of total revenue in H1 2024, up 1.02 percentage points year-on-year [10] - The company is accelerating its digital transformation and building an AI ecosystem for medical testing, enhancing service efficiency and quality [10] Financial Performance Summary - In H1 2024, the company achieved a gross margin of 34.76% and a net margin of 2.15%. The low profit margins were primarily due to lower-than-expected demand for routine testing and credit impairment losses of 296 million yuan [10] - The company’s revenue for Q2 2024 was 2.040 billion yuan, a year-on-year decrease of 6.91%, but showed a quarter-on-quarter increase of 10.77% [10] - The forecast for revenue from 2024 to 2026 is 8.752 billion yuan, 9.966 billion yuan, and 11.395 billion yuan, with year-on-year growth rates of 2.49%, 13.86%, and 14.35% respectively [11] Earnings Forecast and Valuation - The projected net profit for 2024, 2025, and 2026 is 491 million yuan, 934 million yuan, and 1.216 billion yuan, with growth rates of -23.67%, 90.11%, and 30.24% respectively [11] - The earnings per share (EPS) are expected to be 1.05 yuan, 1.99 yuan, and 2.59 yuan for the years 2024, 2025, and 2026 [11] - The company is expected to benefit from the increasing outsourcing rate in the medical testing industry, leading to stable growth in performance [10][11]