SSSW(688399) Orient Securities·2025-01-21 14:06Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of 87.38 CNY [2][6]. Core Views - The approval of the innovative product for endometrial cancer detection by the company's subsidiary, Kaideweisi, opens new development opportunities in the market [9]. - The company is positioned as a leading IVD enterprise in China, with strong advantages in molecular diagnostics and active expansion in various fields including POCT and overseas markets [2][9]. - The company is expected to see a gradual recovery in its regular business revenue as the impact of COVID-19 diminishes, with projected EPS for 2024-2026 being 1.07, 1.68, and 2.26 CNY respectively [2][4]. Financial Information Summary - Revenue for 2022 was 5,535 million CNY, with a projected decline to 403 million CNY in 2023, followed by a gradual increase to 516 million CNY by 2026 [4][12]. - The company experienced a significant drop in net profit in 2023, with a forecasted recovery to 128 million CNY by 2026 [4][12]. - The gross margin is expected to improve from 63.9% in 2023 to 71.0% by 2026, indicating better cost management and pricing power [4][12].