Kingmed Diagnostics(SH:603882) Tai Ping Yang·2024-05-10 07:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase in stock price of over 15% compared to the CSI 300 index in the next six months [1][8]. Core Insights - The company's short-term performance has been negatively impacted by external factors and impairment provisions, but future growth remains promising [3][4]. - In 2023, the company achieved a revenue of 85.40 billion RMB, a year-on-year decrease of 44.82%, primarily due to reduced testing demand related to public health events [2][4]. - The company's net profit for 2023 was 6.43 billion RMB, down 76.64% year-on-year, with a non-recurring net profit of 3.65 billion RMB, reflecting an 86.53% decline [2][4]. - The company plans to distribute a cash dividend of 0.88 RMB per share to all shareholders, which represents 77.56% of the net profit attributable to shareholders [2][4]. Financial Performance Summary - The company’s revenue for 2024 is projected to be 95.17 billion RMB, with a year-on-year growth rate of 11% [4][5]. - The net profit for 2024 is expected to be 7.33 billion RMB, reflecting a growth rate of 14% [4][5]. - The company’s gross profit margin decreased by 6.65 percentage points to 36.48% in 2023, while the overall net profit margin dropped by 10.91 percentage points to 7.46% [2][4]. - The company’s accounts receivable decreased from 70.25 billion RMB in 2022 to 53.35 billion RMB in 2023, indicating improved cash collection trends [3][4]. Business Growth and Strategy - The company’s core business is showing signs of recovery, with regular medical diagnostic service revenue increasing by 15.35% year-on-year to 77.26 billion RMB in 2023 [2][4]. - Significant growth was observed in key disease areas, with diagnostic services for neurological and psychiatric diseases growing by 30.32%, infectious diseases by 49.74%, and cardiovascular and endocrine diseases by 28.78% [2][4]. - The company has established 49 medical laboratories in mainland China and Hong Kong, with a focus on high-end market development, as evidenced by a 4.73 percentage point increase in revenue from tertiary hospital clients [2][4].