Lifotronic(SH:688389) Guotai Junan Securities·2024-11-03 22:37Investment Rating - The report maintains a "Buy" rating for the company [2][3]. Core Views - The IVD production line is experiencing steady growth, with rapid expansion in international markets. Clinical medical and dermatology aesthetics businesses are under short-term pressure but are expected to gradually recover [2]. - The target price has been raised to 21.85 CNY, reflecting an increase from the previous forecast of 19.20 CNY [3]. Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 857 million CNY, representing a year-on-year increase of 5.89%. The net profit attributable to shareholders was 257 million CNY, up 25.62%, and the net profit excluding non-recurring items was 243 million CNY, up 29.11% [8]. - The gross margin for Q1-Q3 was 69.89%, an increase of 3.48 percentage points, while the net profit margin was 29.89%, up 4.65 percentage points [8]. Business Segment Analysis - The IVD business generated revenue of 678 million CNY, a growth of 19%, with domestic revenue at 442 million CNY (up 15%) and international revenue at 237 million CNY (up 26%) [8]. - The clinical medical and dermatology aesthetics segments are currently facing challenges due to a high base in 2023 and a slowdown in hospital bidding processes. However, there is potential for recovery as the industry bidding resumes [8]. Financial Forecasts - The report has adjusted the EPS forecasts for 2024-2026 to 0.95 CNY, 1.14 CNY, and 1.37 CNY respectively, down from previous estimates of 0.96 CNY, 1.20 CNY, and 1.51 CNY [8]. - The company is expected to maintain a net profit growth rate of approximately 20% in the coming years, with projected net profits of 405 million CNY in 2024, 487 million CNY in 2025, and 586 million CNY in 2026 [9].