CABIO(SH:688089) Xinda Securities·2025-05-04 12:56Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong performance relative to the benchmark [3]. Core Views - The company reported a strong Q1 performance with revenue of 156 million, a year-on-year increase of 33.28%, and a net profit of 45 million, up 85.07% year-on-year [3]. - The growth in domestic business is the primary driver of revenue increase, supported by the continued rollout of new national standard products [3]. - The gross margin improved significantly to 48.76%, an increase of 8.27 percentage points year-on-year, attributed to a higher proportion of high-margin customers and economies of scale [3]. - The company’s net profit margin reached 28.85%, up 8.07 percentage points year-on-year, indicating that profit growth outpaced revenue growth [3]. - The company is expected to benefit from ongoing acquisition reviews and potential synergies with the acquisition target, which could further enhance growth opportunities [3]. Financial Summary - For 2025, the company is projected to achieve an EPS of 0.86, with corresponding P/E ratios of 29X, 25X, and 22X for the years 2025, 2026, and 2027 respectively [3][4]. - Revenue is expected to grow from 649 million in 2025 to 871 million by 2027, reflecting a compound annual growth rate [4]. - The net profit is forecasted to increase from 144 million in 2025 to 192 million by 2027, with a consistent growth rate [4].