Lifotronic(SH:688389) Huafu Securities·2025-04-17 09:06Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% against the market benchmark within the next six months [21]. Core Insights - The company reported a revenue of 1.15 billion in 2024, a slight increase of 0.20% year-on-year, with a net profit of 350 million, reflecting a growth of 5.1% year-on-year [3]. - The proportion of reagents in the company's revenue has increased, contributing to a gross margin rise to 67%, up by 1.4 percentage points [3]. - The international market has shown robust growth, with international revenue reaching 370 million, a year-on-year increase of 14.9% [3]. Financial Performance Summary - In 2024, the in vitro diagnostics segment generated 910 million in revenue, a 10% increase year-on-year, while the rehabilitation segment saw a decline in revenue to 220 million, down by 28% [3]. - The company has increased its R&D expenditure to 17.6% of revenue, up by 2.7 percentage points, focusing on innovative technologies and AI integration [4]. - The company expects revenue growth of 11%, 16%, and 17% for 2025, 2026, and 2027, respectively, with net profits projected to grow by 12%, 15%, and 16% in the same years [4][5]. Market Expansion and Product Development - The company plans to continue launching new products, including the LifoLas8000 and LifoLas9000 systems, which are expected to drive reagent sales [4]. - The international market expansion strategy includes enhancing sales and service capabilities across six regions: Russian-speaking countries, Europe, the Americas, the Middle East and Africa, and Asia-Pacific [4]. Valuation Metrics - The report provides a financial forecast with expected revenues of 1.27 billion, 1.47 billion, and 1.73 billion for 2025, 2026, and 2027, respectively, alongside net profits of 390 million, 440 million, and 510 million for the same years [5][12]. - The projected earnings per share (EPS) are 0.90, 1.03, and 1.20 for 2025, 2026, and 2027, respectively, with a decreasing price-to-earnings (P/E) ratio from 15.2 in 2025 to 11.4 in 2027 [5][12].