every AI newsletter, on December 26, 2023, northeast securities issued a research report to review pumen technology (688389).

pumen technology: at the beginning of its establishment in 2008, the company focused on the research and development, production and sales of therapeutic and rehabilitation devices; After 2013, the company will lay out the in vitro diagnostic business and realize the rapid development of in vitro diagnostic business through continuous investment in product research and development. The company will gradually enter the skin medicine and beauty industry in 2020 and enter the consumer health field in 2022, taking advantage of its deep technical barriers, overlay continuous product push new and brand building, from the medical sector quickly cut into the consumer sector.

In vitro diagnostics: domestic electrochemical luminescence leader, IVD laid the company's core performance. The company has been deeply engaged in technical research and development in the field of in vitro diagnosis for a long time. It has been widely distributed in the fields of electrochemiluminescence, saccharification and specific protein detection. As the first electrochemiluminescence enterprise in China, it has obvious technical barriers. Under the trend of domestic substitution, it has realized rapid installation of equipment, further driven the sales of matching high-margin reagents, and is expected to show good performance in various rounds of centralized collection.

Treatment and rehabilitation: clinical medical development is stable, consumer business momentum is sufficient.

1) Clinical medical: industry scale stable growth, continue to push new build a perfect product matrix. With the intensification of aging and the strengthening of residents' health awareness, the clinical medical device market is growing rapidly, the company's product matrix is complete, covering multi-directional treatment needs, and the company continues to improve its product line through mergers and acquisitions to promote steady business growth.

2) Skin medical beauty: relay to create the core large single product, the achievement of anti-aging equipment leader. Through the combination of acquisition and self-research, the company has gradually improved the skin medical and beauty pipeline, focusing on building the core large single products "Lenglati" and "Ultrasonic V Latin America", and continuously promoting the advancement of product technology to achieve both therapeutic effect and user experience. In addition, the company has continuously strengthened the user's mind and deep binding downstream institutions to promote the rapid laying of equipment and long-term stable installation.

3) Consumer Health: The first-mover advantage of technology is outstanding, and the C- side business is rapidly advancing. The company expanded from B- side to C- side, in the technical level has significant innate advantages, product quality and effect is fully guaranteed, the company also continues to strengthen product promotion and brand building, new photon mask once launched will be a good response, the company will continue to iterate to push new, deepen the consumer side of the business layout.

Investment advice: The company's in vitro diagnosis and treatment rehabilitation business two-round development, photoelectric medical beauty and consumer health business potential, continue to drive the company's performance growth. The company's operating income for 2023-2025 is expected to be 12.40/16.09/2.043 billion yuan, and the net profit attributable to the parent company is 3.35/4.31/0.551 billion yuan, respectively, and the corresponding PE is 28/22/17 times. First coverage, give a "buy" rating.

Risk Warning: The performance of the collection is less than expected, the industry regulatory policy is tightening, the consumption is less than expected, the performance of new medical products is less than expected, the performance forecast and valuation judgment is not expected.

(Source: Huibo Investment Research)

Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Please verify before use. Operate accordingly at your own risk.

(edited by Zeng Jianhui)