Core Viewpoint - Aladdin plans to acquire 35% equity in Youke for a cash payment of 61.25 million yuan, which will enhance its product line in laboratory general analytical instruments and improve customer procurement convenience and loyalty [1][2]. Group 1 - Aladdin has signed a share transfer intention agreement with Shanghai Youke Instrument Co., Ltd. for the acquisition [2]. - The investment will make Youke a subsidiary of Aladdin, allowing for better integration of resources [2]. - Youke specializes in the research, production, sales, and service of laboratory general analytical instruments, and is a supplier of "Made in China" analytical instruments in the international market [2]. Group 2 - The main products of Youke include UV spectrophotometers, pH meters, conductivity meters, biological microscopes, and gas chromatography instruments [2]. - Aladdin aims to leverage its customer resources, channel resources, e-commerce platform resources, and warehousing resources both domestically and internationally to empower Youke [2].

Investment Rating - The report assigns a "Buy" rating for Aladdin (688179) based on its strong potential for growth and strategic acquisitions [10]. Core Insights - The investment in Shanghai Youke is expected to enhance Aladdin's product line in laboratory instruments, allowing for bundled sales of reagents and instruments, thus creating a synergistic effect [2]. - The valuation for the stake in Shanghai Youke is considered reasonable, with a PE ratio of approximately 7.8 times and a PB ratio of about 1.8 times, indicating a solid investment opportunity [3]. - Aladdin's revenue and profit forecasts for 2025-2027 show significant growth, with projected revenues of 6.49 billion, 8.60 billion, and 9.64 billion respectively, and net profits of 0.96 billion, 1.46 billion, and 1.70 billion [3]. Financial Summary - Total revenue for 2023 is reported at 403 million, with a year-on-year growth rate of 6.6%. This is expected to increase to 534 million in 2024, representing a growth rate of 32.4% [4]. - The net profit for 2023 is 86 million, with a projected decline of 7.5% year-on-year, but is expected to recover to 99 million in 2024, reflecting a growth of 15.1% [4]. - The gross margin is forecasted to remain stable around 62.6% to 62.9% from 2025 to 2027, indicating strong operational efficiency [4].