Jiangsu (SH:688426) Soochow Securities·2024-02-27 16:00Investment Rating - The report gives a "Buy" rating for the company, with a target market value of approximately 3 billion yuan for 2024 [30][31]. Core Insights - The company focuses on the molecular detection industry, integrating reagents and services, with a strong emphasis on the detection of Helicobacter pylori (Hp) and colorectal cancer screening as future growth drivers [30][50]. - The company has maintained a high gross margin of around 70% from 2018 to 2023, despite a decline in 2023 due to the end of COVID-related business [7][28]. - The report highlights the significant market potential for Hp detection, estimating a peak sales potential of 1.5 billion yuan for the Hp resistance screening product expected to be approved in 2024 [30][49]. Summary by Sections Company Overview - The company operates in the molecular detection sector, offering a comprehensive range of products including molecular detection raw materials, nucleic acid preservation reagents, nucleic acid extraction and purification reagents, and molecular diagnostic kits [16][50]. - The company has established six major technology platforms and holds numerous patents, contributing to its strong market position [16][50]. Financial Performance - In 2022, the company achieved a revenue of 522 million yuan, a year-on-year increase of 54.1%, with a net profit of 159 million yuan [28][31]. - For the first three quarters of 2023, the company reported a revenue of 152 million yuan, a significant decline of 61.9%, primarily due to the cessation of COVID-related business [28][31]. Market Potential - The report emphasizes the high prevalence of Hp infection in China, with an infection rate of 44%, and the urgent need for improved screening methods [11][14]. - The potential market for Hp screening is substantial, with an estimated 700 million individuals recommended for screening, and the report anticipates a significant increase in screening penetration rates by 2030 [68][77]. Future Growth Drivers - The company plans to leverage its existing technology and market presence to expand into new areas, particularly in the detection of digestive tract infectious diseases and colorectal cancer screening [21][50]. - The report forecasts that the company's Hp detection products will generate significant revenue growth, with total sales projected to reach 1 billion yuan by 2025 and peak at 1.5 billion yuan by 2030 [49][50].