Lifotronic(SH:688389) Tai Ping Yang·2024-11-13 03:06Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [5][6]. Core Views - The company's IVD (In Vitro Diagnostics) business shows steady growth, with a reported revenue of 857 million yuan for the first three quarters of 2024, representing a year-on-year increase of 5.89%. The net profit attributable to shareholders reached 257 million yuan, up 25.62% year-on-year [1][2]. - The company has launched a new round of stock option incentives aimed at attracting and retaining talent, reflecting long-term confidence in its operations. The incentive plan targets a revenue growth rate of 23% for 2024, 46% for 2025, and 69% for 2026 [1][2]. Financial Summary - For the first three quarters of 2024, the IVD business revenue was 678 million yuan, a 19% increase year-on-year, with domestic and international revenues growing by 15% and 26%, respectively [1][2]. - The comprehensive gross profit margin improved by 3.48 percentage points to 69.89% due to a higher proportion of IVD reagent sales [1][2]. - The company forecasts revenues of 1.243 billion yuan, 1.501 billion yuan, and 1.732 billion yuan for 2024, 2025, and 2026, respectively, with corresponding net profits of 405 million yuan, 489 million yuan, and 580 million yuan [2][3][4]. Key Financial Metrics - The report projects an EPS of 0.95, 1.14, and 1.35 for 2024, 2025, and 2026, respectively, with a PE ratio of 18 times based on the closing price on November 11, 2024 [2][3]. - The company's net profit margin is expected to increase to 32.57% in 2024, with a projected growth rate of 23.23% [4]. Market Position - The company is positioned to benefit from the ongoing trend of import substitution in the IVD sector, particularly in its glycosylated hemoglobin business, which is gaining market share due to strong competitiveness [1][2]. - The international IVD business is anticipated to expand further with the introduction of high-end glycosylated models and enhanced marketing efforts [1][2].