DIRUI(SZ:300396) Guoyuan Securities·2024-01-31 16:00Investment Rating - The report initiates coverage on the company with a "Buy" rating [3]. Core Viewpoints - The company has been deeply engaged in the IVD industry for over 30 years, with a diverse product line and a strong global presence, having sold products to over 120 countries [2][45]. - The company has shown significant revenue growth, with a 30.69% increase in revenue and a 20.35% increase in net profit in the first three quarters of 2023 [2][51]. - The IVD market in China is expected to grow from 169.8 billion yuan in 2023 to 242.8 billion yuan by 2027, with a compound annual growth rate (CAGR) of 7.4% [2][34]. - The company is well-positioned in the urine analysis segment, with a market share of 12.3%, and is expected to benefit from the ongoing trend of domestic product substitution [72][93]. Summary by Sections Company Overview - The company was established in 1992 and has developed a comprehensive product line in the IVD sector, including urine analysis, biochemical analysis, and immunoassay products [2][45]. - The company has undergone significant changes since the entry of China Resources Group in 2020, enhancing its governance and operational capabilities [46][48]. Financial Performance - The company reported a revenue of 1.049 billion yuan and a net profit of 234 million yuan in the first three quarters of 2023, reflecting a year-on-year growth of 30.69% and 20.35%, respectively [2][51]. - The revenue from instruments reached 434 million yuan in the first half of 2023, marking a 64.21% increase year-on-year [52]. Market Dynamics - The global IVD market is projected to grow steadily, with the Chinese market expected to see significant growth driven by an aging population and increased health awareness [34][57]. - The report highlights the normalization of centralized procurement in the industry, which is expected to enhance the market share of domestic manufacturers [35][36]. Product and Technology Development - The company has a strong competitive edge in urine analysis, with advanced technologies that improve testing efficiency and accuracy [75]. - The company is expanding its product offerings in the high-speed biochemical analysis and chemiluminescence markets, which are expected to drive future growth [90][94]. Investment Outlook - The company is forecasted to achieve net profits of 326 million yuan, 408 million yuan, and 514 million yuan for the years 2023, 2024, and 2025, respectively, with corresponding earnings per share (EPS) of 1.19, 1.48, and 1.87 yuan [2][12].