HAIER BIOMEDICAL(SH:688139) Guotou Securities·2024-04-26 04:00Investment Rating - The investment rating for the company is "Buy - A" with a 6-month target price of 43.27 CNY [7][22]. Core Views - The company has captured structural opportunities in the industry and continues to see rapid growth in new business segments [2][6]. - The domestic market achieved revenue of 4.99 billion CNY in Q1 2024, representing a year-on-year growth of 11% and a quarter-on-quarter growth of 80% [20]. - The overseas market generated revenue of 1.86 billion CNY, showing a quarter-on-quarter growth of 6%, although there was a year-on-year decline due to project execution cycles [20]. Financial Performance - In Q1 2024, the company reported revenue of 6.87 billion CNY, a year-on-year increase of 0.04% and a quarter-on-quarter increase of 51% [5][6]. - The net profit attributable to shareholders was 1.38 billion CNY, with a year-on-year growth of 0.06% and a quarter-on-quarter growth of 182% [5]. - The gross profit margin stood at 49.6%, with net profit margin and non-recurring net profit margin at 20% and 19% respectively, both showing significant quarter-on-quarter improvements [5]. Business Segments - The life sciences segment generated revenue of 3.5 billion CNY in Q1 2024, with a quarter-on-quarter growth of 79% [6]. - The medical innovation segment achieved revenue of 3.34 billion CNY, reflecting a quarter-on-quarter growth of 31% [6]. - New industries accounted for 39% of total revenue, with a year-on-year growth of 22% and a quarter-on-quarter growth of 36% [6]. Market Outlook - The company is expected to maintain strong revenue growth rates of 26.4%, 25.0%, and 23.5% for the years 2024 to 2026 respectively [22]. - Net profit growth rates are projected at 35.5%, 25.3%, and 25.1% for the same period, indicating robust growth potential [22].