DIRUI(SZ:300396) Guoyuan Securities·2024-04-22 09:30Investment Rating - The report maintains a "Buy" rating for the company, expecting the stock price to outperform the Shanghai Composite Index by more than 20% in the next six months [32]. Core Views - The company achieved a revenue of 1.378 billion yuan in 2023, representing a year-on-year growth of 12.96%, and a net profit attributable to shareholders of 276 million yuan, up 5.26% year-on-year. The growth rate has slowed down mainly due to the revenue recognition schedule, with some overseas income deferred to Q1 2024 [5][38]. - The company’s instrument business is expected to maintain steady growth, while the reagent business is anticipated to see significant expansion starting in 2024. Projected revenues for 2024-2026 are 2.102 billion, 2.599 billion, and 3.190 billion yuan, with corresponding net profits of 400 million, 492 million, and 608 million yuan [9][39]. Summary by Sections Financial Performance - In 2023, the company’s instrument business generated 821 million yuan in revenue, a year-on-year increase of 19.89%, accounting for 59.61% of total revenue. The reagent business brought in 550 million yuan, growing 4.62% year-on-year, making up 39.94% of total revenue [21]. - The company’s gross margin for the year was 50.53%, down 1.46 percentage points, while the net margin was 20.00%, down 1.45 percentage points. The sales expense ratio increased to 18.17%, reflecting increased spending to capture market share [5]. Market Expansion - The company has been enhancing its overseas sales system, achieving rapid business growth. In 2023, domestic revenue was 831 million yuan, up 3.89%, while overseas revenue reached 547 million yuan, a 32.96% increase [40]. - The company has established a comprehensive sales and service network globally, with products sold in over 120 countries, indicating a strong potential for continued overseas market expansion [40].