Kingmed Diagnostics(603882) 兴业证券·2024-11-17 02:19Investment Rating - The report maintains a rating of "Accumulate" for the company [5]. Core Views - The company reported a revenue of 5.619 billion yuan for Q1-Q3 2024, a year-on-year decrease of 10.95%, with a net profit attributable to shareholders of 0.094 billion yuan, down 83.71% year-on-year [2]. - The decline in performance is attributed to external environmental changes, weak demand, and a high base in 2023, but improvements are expected as these pressures ease [2]. - The company's gross margin and net margin for Q1-Q3 2024 were 35.15% and 1.49%, respectively, both showing a decline compared to the previous year [2]. - The company has established a network of 49 medical laboratories across mainland China and Hong Kong, enhancing its competitive edge through cost leadership and digitalization [2]. - Cash flow has significantly improved, with accounts receivable decreasing to 5.121 billion yuan, indicating better collection efforts [2]. Financial Summary - For 2024, the company is expected to face significant external pressures, leading to a projected EPS of 0.42 yuan, with estimates for 2025 and 2026 at 1.42 yuan and 1.82 yuan, respectively [3]. - The report forecasts a recovery in revenue growth starting in 2025, with a projected revenue of 8.067 billion yuan in 2025, reflecting an 8.5% year-on-year increase [3]. - The company's net profit for 2024 is projected at 0.197 billion yuan, a decrease of 69.4% year-on-year, but expected to rebound to 0.668 billion yuan in 2025 [3]. - The report highlights a significant improvement in cash flow from operating activities, projected at 2.098 billion yuan for 2024 [6].