Lifotronic(688389) 华创证券·2024-11-05 10:32Investment Rating - The report maintains a "Recommend" rating for Pumen Technology with a target price of 21 CNY, compared to the current price of 17.23 CNY [1] Core Views - Pumen Technology's Q3 2024 performance met expectations, with IVD (In Vitro Diagnostics) business maintaining rapid growth [1] - The company's international business continues to grow at a high rate, with international market revenue reaching 253 million CNY (+19.11%) in Q1-Q3 2024, accounting for 29.5% of total revenue [2] - IVD business shows strong growth both domestically and internationally, with domestic IVD revenue at 442 million CNY (+15.17%) and international IVD revenue at 237 million CNY (+25.74%) in Q1-Q3 2024 [2] - The company's profitability has improved, with Q3 2024 gross margin reaching 70.07% (+0.98pct) and net profit margin at 32.05% (+3.97pct) [2] - A new incentive plan was released in September 2024, demonstrating confidence in future growth, with performance targets of 23%, 46%, and 69% revenue or net profit growth for 2024-2026 compared to 2023 [2] Financial Performance - Q1-Q3 2024 revenue reached 857 million CNY (+5.89%), with net profit attributable to shareholders of 257 million CNY (+25.62%) [1] - Q3 2024 revenue was 267 million CNY (+6.45%), with net profit attributable to shareholders of 86 million CNY (+21.51%) [1] - The company's 2024-2026 net profit is forecasted to be 410 million, 490 million, and 590 million CNY, representing growth rates of 23.8%, 19.9%, and 20.5% respectively [2] - EPS for 2024-2026 is projected to be 0.95, 1.14, and 1.37 CNY, with corresponding P/E ratios of 18, 15, and 13 times [2] Business Development - The company has established subsidiaries in Russia and Indonesia to enhance localized marketing capabilities [2] - Pumen Technology has launched innovative products, including a new generation 25-hydroxyvitamin D assay kit using small molecule sandwich technology and the LifoLas 8000 and LifoLas 9000 automated immunoassay systems [2] Financial Projections - Revenue for 2024-2026 is projected to be 1.245 billion, 1.438 billion, and 1.721 billion CNY, with growth rates of 8.7%, 15.5%, and 19.7% respectively [3] - Gross margin is expected to improve from 65.8% in 2023 to 71.5% in 2026 [6] - ROE is forecasted to increase from 18.3% in 2023 to 20.5% in 2026 [6]