Lifotronic(688389) 西南证券·2024-03-31 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 21.00 CNY over the next six months [1][15]. Core Insights - In 2023, the company achieved a revenue of 1.145 billion CNY, representing a growth of 16.6%, and a net profit attributable to shareholders of 330 million CNY, which is an increase of 30.7% [1][3]. - The fourth quarter of 2023 saw a revenue of 340 million CNY, up 8.7%, and a net profit of 120 million CNY, reflecting a growth of 25.5% [1]. - The company’s profitability improved significantly due to the implementation of an equity incentive plan, with a notable increase in gross margin to 65.8%, up 7.3 percentage points [1][11]. Summary by Sections Financial Performance - The company’s quarterly revenues for 2023 were 280 million CNY in Q1, 280 million CNY in Q2, 250 million CNY in Q3, and 340 million CNY in Q4, with respective growth rates of 32.3%, 18.5%, 10.6%, and 8.7% [1]. - The annual net profit growth rate exceeded revenue growth, indicating improved profitability [1]. Business Segments - The IVD (In Vitro Diagnostics) and treatment rehabilitation products are driving growth, with significant contributions from the medical aesthetics sector [1][11]. - The company has enhanced its competitive position in both domestic and international markets, particularly in the biochemical immunology product line [1][11]. Research and Development - High investment in R&D has led to a rich product line, including new high-end diagnostic and medical aesthetic products launched in 2023 [1][11]. - The company is focusing on consumer health products, leveraging existing technologies to meet market demands [1]. Profit Forecast and Valuation - The forecast for net profit attributable to shareholders for 2024-2026 is 430 million CNY, 540 million CNY, and 620 million CNY, with corresponding PE ratios of 17, 13, and 12 times [1][3]. - The expected revenue growth rates for the same period are 22.6%, 21.1%, and 20.5% respectively [1][10].