Jiangsu (SH:688426) Soochow Securities·2024-05-07 13:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to face short-term pressure on revenue and profits due to a slowdown in demand within the molecular diagnostics industry. However, there is optimism regarding the potential of the Helicobacter pylori (Hp) antibiotic resistance testing series, which is anticipated to become a leading product in 2024 [2][12] - The company has a strong position in the nucleic acid preservation and extraction business, with an integrated industry chain advantage and faster growth compared to peers. The target market capitalization for 2024 is estimated at approximately 3 billion yuan [3] Summary by Sections Financial Performance - In 2023, the company reported total revenue of 171.34 million yuan, a decrease of 67.15% year-on-year, and a net profit attributable to shareholders of -84.41 million yuan, down 153.00% year-on-year. The first quarter of 2024 saw revenue of 29 million yuan, a decline of 62.57% year-on-year, with a net profit of -29 million yuan, down 826.09% year-on-year [1][12] - Revenue forecasts for 2024 and 2025 have been adjusted to 240 million yuan and 350 million yuan, respectively, with a projected net profit of -69.53 million yuan in 2024 and 5.23 million yuan in 2025 [3][12] Product Development - The company has received patents for six common Hp antibiotic gene typing kits (PCR method) and has launched new products such as the Dundu Jiatm fecal occult blood test kit and the Dunli Jiatm Hp antigen test kit, which are expected to contribute to sales growth [12] Market Position - The company is the only one in the market utilizing the fecal nucleic acid method for Hp testing, which is expected to gain approval for sale in 2024. The pricing for Hp positive detection and resistance testing is estimated at 298 yuan and 798 yuan, respectively [2][3]