Kingmed Diagnostics(SH:603882) Huachuang Securities·2024-04-29 00:02Investment Rating - The report maintains a "Recommended" investment rating for the company [1][2]. Core Views - The company's overall revenue for 2023 was 8.54 billion yuan, a decrease of 44.82% year-on-year, primarily due to reduced testing demand related to public health events. However, routine medical testing revenue showed a recovery with a 15.35% year-on-year increase, reaching 7.73 billion yuan [2][3]. - The company is accelerating its digital transformation, achieving significant results with its "Medical Testing 4.0" initiative, which includes the establishment of specialized disease databases and the implementation of automated and intelligent systems to enhance laboratory efficiency [2][3]. - Despite a short-term performance pressure in Q1 2024, with revenue of 1.84 billion yuan (down 13.05% year-on-year) and a net loss of 19 million yuan, the long-term growth momentum remains intact. The company plans to enhance its core capabilities through cost management, new product development, and digital transformation [2][3]. Financial Summary - For 2023, the company reported total revenue of 8.54 billion yuan, with a year-on-year growth rate of -44.8%. The net profit attributable to shareholders was 643 million yuan, down 76.6% year-on-year [3]. - The forecast for net profit attributable to shareholders for 2024, 2025, and 2026 is adjusted to 1.11 billion yuan, 1.34 billion yuan, and 1.61 billion yuan, respectively, with corresponding P/E ratios of 16, 13, and 11 times [2][3]. - The company's total market value is approximately 17.86 billion yuan, with a current share price of 38.10 yuan [6].