WONDFO BIOTECH(SZ:300482) Huachuang Securities·2024-04-23 13:32Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 37 yuan [7][27]. Core Insights - The company has shown steady development across its four main business lines, with a recovery in conventional business growth. The revenue for 2023 was 2.765 billion yuan, reflecting a year-on-year decrease of 51.33%, while the net profit attributable to shareholders was 488 million yuan, with a year-on-year decrease of 59.26% [7][27]. - The infectious disease testing business has seen a recovery, with revenue of 9.52 billion yuan, a year-on-year decline of 75.82%. However, conventional businesses like respiratory and blood-borne infectious disease testing have shown recovery, particularly with significant growth in influenza testing sales due to a rise in respiratory diseases in 2023 [7][27]. - The chronic disease management testing business has expanded both domestically and internationally, achieving a revenue growth of 19.11% year-on-year, driven by a recovery trend in domestic hospital diagnosis and treatment [7][27]. - The drug abuse testing business has maintained a strong core customer base, with revenue of 1.12 billion yuan, a year-on-year increase of 12.68%. The company has successfully stabilized its core customer base in the North American drug testing market through optimized R&D processes and enhanced local marketing [7][27]. - The reproductive health testing business has focused on providing comprehensive solutions domestically and accelerating product iterations overseas, achieving a revenue growth of 10.08% year-on-year [7][27]. Financial Summary - The company expects net profits attributable to shareholders for 2024, 2025, and 2026 to be 652 million yuan, 851 million yuan, and 1.086 billion yuan, respectively, with year-on-year growth rates of 33.8%, 30.5%, and 27.5% [7][27]. - The projected earnings per share (EPS) for the same years are 1.38 yuan, 1.80 yuan, and 2.30 yuan, with corresponding price-to-earnings (P/E) ratios of 19, 14, and 11 [7][27]. - The total revenue forecast for 2024, 2025, and 2026 is 3.359 billion yuan, 4.112 billion yuan, and 5.045 billion yuan, with year-on-year growth rates of 21.5%, 22.4%, and 22.7% [7][27].