DIAN DIAGNOSTICS(300244) 东方证券·2024-09-09 04:05Investment Rating - The report maintains a "Buy" rating for the company with a target price of 12.80 RMB [2][5] Core Views - The company's performance is under short-term pressure due to factors such as impairment provisions In H1 2024, the company achieved revenue of 6.22 billion RMB, a year-on-year decrease of 9.12% The diagnostic service business generated 2.36 billion RMB, down 13.4% year-on-year, while the diagnostic product business generated 4.09 billion RMB, down 5.9% year-on-year The net profit attributable to the parent company was 70 million RMB, a year-on-year decrease of 84.2%, mainly due to a decline in the gross profit margin of the diagnostic service business [1] - The company's ICL business achieved revenue of 2.19 billion RMB in H1 2024, a year-on-year increase of 6.3% The company launched 176 new testing projects, with significant revenue growth in infectious diseases (+93%), hematology (+84%), and neuroimmunology (+53%) The company also added 41 new cooperative laboratories and 10 precision centers, with revenue increases of 11% and 35% respectively [1] - In the diagnostic product business, the company obtained 5 Class II certificates and 18 Class I certificates in H1 2024 Subsidiary "Kailai Spectrum" obtained 6 Class I reagent registration certificates, and subsidiary "Dian Diagnostics" received approval for a Class III registration certificate for a gene detection kit [1] Financial Forecasts - The report adjusts the EPS forecasts for 2024-2026 to 0.64/1.06/1.29 RMB (previously 1.25/1.58/1.99 RMB) based on the 2024 semi-annual report [2] - Revenue is expected to be 12.673 billion RMB in 2024, with a year-on-year decrease of 5.5%, and is projected to grow by 7.1% and 7.2% in 2025 and 2026 respectively [4] - The net profit attributable to the parent company is forecasted to be 398 million RMB in 2024, with a year-on-year increase of 29.6%, and is expected to grow by 66.2% and 21.7% in 2025 and 2026 respectively [4] Valuation and Market Performance - The company's stock price was 9.9 RMB as of September 6, 2024, with a 52-week high/low of 27.85/9.75 RMB [5] - The company's market capitalization is 6.187 billion RMB, with a total share capital of 624.98 million shares and a circulating A-share capital of 501.48 million shares [5] - The company's PE ratio is 15.5 for 2024, with a PB ratio of 0.8 [4]