WONDFO BIOTECH(300482) SINOLINK SECURITIES·2024-08-14 02:00Investment Rating - The investment rating for Wanfu Biology is "Buy" (maintained) [1][2][7] Core Views - The company achieved stable revenue growth in the first half of 2024, with total revenue reaching 1.575 billion RMB, a year-on-year increase of 6%. The net profit attributable to shareholders was 356 million RMB, also up by 6% year-on-year [1] - The company has set ambitious growth targets in its new stock incentive plan, aiming for a net profit growth rate of 30%, 60%, and 100% from 2024 to 2026, and a sales revenue growth rate of 70%, 175%, and 300% for its chemiluminescence business over the same period [2] - The company continues to invest in R&D, with an investment of 216 million RMB in the first half of 2024, accounting for 13.75% of its revenue, leading to breakthroughs in chemiluminescence and molecular diagnostics [1] Summary by Sections Performance Overview - In the first half of 2024, the company reported revenue of 1.575 billion RMB, a 6% increase year-on-year, and a net profit of 356 million RMB, also up 6% year-on-year. The adjusted net profit was 325 million RMB, reflecting a 10% increase [1] - In Q2 2024, revenue was 714 million RMB, a 9% increase year-on-year, with a net profit of 138 million RMB, up 5% year-on-year [1] Business Analysis - The infectious disease segment generated 481 million RMB in revenue, a 12.5% increase year-on-year. The chronic disease management testing segment brought in 762 million RMB, up 6.14%. However, drug abuse testing revenue fell by 15.02% to 139 million RMB, while prenatal testing revenue rose by 16.92% to 156 million RMB [1] - The overall gross margin reached 64.3%, an increase of 0.8 percentage points year-on-year, indicating continuous improvement in profitability [1] R&D and Future Growth - The company is focusing on R&D, with a 6.65% increase in R&D spending to 216 million RMB in the first half of 2024. This investment is crucial for advancements in chemiluminescence and molecular diagnostics [1] - The new stock incentive plan reflects the company's confidence in future growth, with specific targets set for profit and sales in the chemiluminescence business [2] Profit Forecast and Valuation - The company is expected to achieve net profits of 652 million RMB, 837 million RMB, and 1.037 billion RMB for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 34%, 28%, and 24% [2] - The estimated earnings per share (EPS) for the same period are projected to be 1.38 RMB, 1.77 RMB, and 2.20 RMB, with corresponding price-to-earnings (P/E) ratios of 18, 14, and 11 times [2]