Shenzhen YHLO Biotech (SH:688575) Huafu Securities·2024-04-22 09:30Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 24.91 CNY for 2024, corresponding to a PE of 30 times [1][6][19]. Core Views - The company achieved a revenue of 2.05 billion CNY in 2023, a decrease of 48.4%, and a net profit of 355 million CNY, down 64.9%. The first quarter of 2024 saw a revenue of 431 million CNY, a decline of 34.7% [1][11]. - The company is a leading player in the domestic chemical luminescence market, with high growth potential expected to continue. The EPS forecast for 2024-2026 is 0.83, 1.06, and 1.34 CNY respectively [1][12]. - The report highlights strong performance in self-produced and luminescent businesses, with significant growth in non-COVID related revenue, particularly in the chemical luminescence segment, which saw a 50% increase [5][18]. Summary by Sections Financial Performance - In 2023, the non-COVID related business generated 1.71 billion CNY in revenue, an increase of 36.3%, with the chemical luminescence business contributing 1.168 billion CNY, up 50% [5][12]. - The first quarter of 2024 showed a narrowing decline in profits, with self-produced non-COVID business revenue at 342 million CNY, a year-on-year increase of 43.3% [5][12]. Market Position and Strategy - The company has successfully implemented a strategy of "specialized admission and regular volume," leading to a 50.2% increase in routine diagnostic reagent revenue and a 38.59% increase in autoimmune diagnostic revenue [18]. - The domestic market saw a significant increase in installed capacity, with 488 units of the 600-speed model installed in 2023, representing a growth of 104.18% [18]. Future Outlook - The report projects a revenue growth rate of 8.5% for 2024, followed by 25.6% and 24.5% in 2025 and 2026 respectively [13]. - The company is expected to maintain high growth in its self-produced and luminescent revenue streams, with successful overseas expansion noted [12][18].