LabTech(SH:688056) Huachuang Securities·2024-11-15 13:20Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 40 CNY, compared to the current price of 31.09 CNY [1][2]. Core Insights - The company achieved a revenue of 311 million CNY in the first three quarters of 2024, representing a year-on-year growth of 3.72%. The net profit attributable to shareholders reached 35 million CNY, up 31.64% year-on-year, with a basic EPS of 0.53 CNY, an increase of 32.5% [1][2]. - In Q3 2024, the company reported a revenue of 97 million CNY, a decrease of 6.45% year-on-year, but the net profit increased by 193.7% to 11 million CNY. This profit growth is attributed to enhanced cost control and adjustments in personnel structure, leading to a reduction in sales and R&D expenses [2][3]. - The overall gross margin for all products in the first three quarters of 2024 was 44.87%, an increase of 0.3 percentage points compared to the same period last year, and up 1.08 percentage points from the average gross margin for 2023 [2][3]. Summary by Sections Financial Performance - Revenue for 2023 is projected at 416 million CNY, with expected growth rates of 17.2% in 2023, 16.4% in 2024, 18.1% in 2025, and 19.4% in 2026 [3][6]. - The net profit for 2023 is estimated at 28 million CNY, with significant growth expected in subsequent years: 46 million CNY in 2024, 63 million CNY in 2025, and 88 million CNY in 2026, reflecting growth rates of -38.2%, 66.0%, 38.1%, and 39.7% respectively [3][6]. - The company’s EPS is projected to increase from 0.41 CNY in 2023 to 1.31 CNY in 2026, with corresponding P/E ratios decreasing from 76 in 2023 to 24 in 2026 [3][6]. Product Development and Market Expansion - The company is actively launching competitive mass spectrometry products, including the Labs 5000 ICP-MS/MS, which have been successfully sold in the semiconductor industry. Continuous improvements in product performance are planned to enhance market share [2][3]. - The company is expanding its overseas business, focusing on Europe and the United States, by diversifying its product lines and recruiting international sales personnel to increase sales channels and promote domestic products abroad [2][3]. Investment Outlook - The report suggests that the company is well-positioned to become a leader in China's scientific instrument industry, driven by domestic product advantages and the release of new products. The projected net profits for 2024-2026 are 46 million CNY, 63 million CNY, and 88 million CNY respectively, with a target price of 40 CNY based on a 43x P/E ratio for 2025 [2][3].