DIAN DIAGNOSTICS(300244) 东方证券·2024-04-26 01:02Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 20.00 CNY per share [3][14]. Core Insights - The company has shown a significant improvement in operating cash flow, with a net cash flow from operating activities of 1.921 billion CNY in 2023, an increase of 17.20% year-on-year [13]. - The conventional diagnostic services have demonstrated steady growth, with the diagnostic services segment generating revenue of 5.187 billion CNY in 2023, reflecting a year-on-year growth of 11.91% when excluding COVID-19 impacts [13]. - The company is expanding its business both domestically and internationally, with new projects and partnerships contributing to revenue growth [13]. Financial Summary - Revenue: The company reported revenue of 13.408 billion CNY in 2023, a decrease of 33.9% compared to 2022. Projections for 2024, 2025, and 2026 are 15.039 billion CNY, 16.925 billion CNY, and 19.106 billion CNY, respectively, indicating a recovery trend with expected growth rates of 12.2%, 12.5%, and 12.9% [2]. - Net Profit: The net profit attributable to the parent company was 307 million CNY in 2023, down 78.6% from 2022. Forecasts for the next three years are 785 million CNY, 989 million CNY, and 1.246 billion CNY, with significant growth expected in 2024 at 155.4% [2]. - Earnings Per Share (EPS): The EPS for 2023 was 0.49 CNY, with projections of 1.25 CNY, 1.58 CNY, and 1.99 CNY for 2024, 2025, and 2026, respectively [2][14]. - Profit Margins: The gross margin for 2023 was 31.3%, with projections of 32.3%, 32.8%, and 33.3% for the following years [2]. The net margin was 2.3% in 2023, expected to improve to 5.2%, 5.8%, and 6.5% in the next three years [2]. Business Development - The company has launched 1,023 new testing projects and increased the number of tier-three hospital clients by 238, with tier-three hospital revenue accounting for 32.8% of total revenue [13]. - The company is also expanding its international presence, with plans to establish its first overseas ICL laboratory in Vietnam [13].