Kingmed Diagnostics(SH:603882) Guotai Junan Securities·2024-05-07 08:02Investment Rating - The investment rating for the company is "Buy" with a target price of 58.11 CNY, down from the previous target of 74.90 CNY [1][4]. Core Views - The report indicates that the company's short-term performance is under pressure but anticipates a recovery in profitability due to the rebound in routine medical testing demand, cost reduction, and efficiency improvements [1][4]. - The company achieved a revenue of 8.54 billion CNY in 2023, a decrease of 45% year-on-year, with a net profit attributable to shareholders of 643 million CNY, down 76.63% [1][4]. - The report maintains a "Buy" rating, reflecting expectations for gradual recovery in profitability as routine medical testing demand rebounds and operational efficiencies are realized [1][4]. Summary by Sections Financial Performance - The company reported a revenue of 8.54 billion CNY in 2023, a decline of 45% compared to the previous year, with a net profit of 643 million CNY, down 76.63% [1][4]. - The first quarter of 2024 saw a revenue of 1.84 billion CNY, a decrease of 13.05% year-on-year, with a net profit of 19 million CNY, indicating a transition to a loss [1][4]. Earnings Forecast - The forecast for EPS (Earnings Per Share) is adjusted to 1.49 CNY for 2024, 2.04 CNY for 2025, and 2.55 CNY for 2026, reflecting a downward revision from previous estimates [1][4]. - The report anticipates a gradual recovery in earnings driven by the resumption of routine medical testing and improved operational efficiency [1][4]. Market Position and Strategy - The company is positioned as a leading player in the third-party medical testing industry in China, with a focus on digital transformation and cost reduction strategies [1][4]. - The report highlights the company's ongoing efforts to enhance service efficiency and customer experience through the establishment of national disease alliances and precision medicine centers [1][4].