Event: The company released its 2024 annual report, achieving revenue of 1.378 billion yuan in 24 years (+7.15%, year-on-year growth rate in parentheses, the same below), and net profit attributable to the parent company of -18 million yuan (year-on-year loss of 53 million yuan; In 24 years, the share-based payment expense was recognized to be 43.85 million yuan, and the operating profit was realized after excluding the impact of the share-based payment expense), and the net profit not attributable to the parent company was -83 million yuan (a year-on-year loss reduction of 110 million yuan). The company reduced costs and increased efficiency, achieving a year-on-year increase in sales gross profit margin of -1.10 pct, a sales expense ratio of -1.09 pct, an administrative expense rate of -1.58 pct, and a research and development expense rate of -4.53 pct.

The growth rate of the life science segment is driven by new product series such as cell proteins and overseas sales, and the growth rate of the biomedical sector is contributed by GLP-1 and other businesses: (1) The life science business segment achieved revenue of 1.03 billion yuan (+19%, year-on-year, the same below), mainly driven by new products (doubling the sales of cell protein reagent equipment, and YOY+70% of the new nucleic acid extraction product line) and overseas sales. (2) The biopharmaceutical segment achieved revenue of RMB180 million (+6%), mainly due to the contraction of COVID-19 vaccine-related business; However, the sales of semaglutide business are about 50 million yuan, filling the performance gap. (3) The IVD segment achieved revenue of 166 million yuan (-30%), of which the conventional POCT business shrank, while the rapid detection of respiratory pathogens and Alzheimer's disease (AD) blood testing solutions were the key development directions. (4) Overseas business achieved revenue of 101 million yuan (+122%), overseas gross profit margin as high as 81%, 24 years of a number of enzyme raw materials completed DMF filing and activation, overseas sales increase is expected to drive gross profit margin.

We believe that the company's business highlights and future highlights are mainly as follows: (1) Consolidate R&D investment and achieve results: The company will invest 300 million yuan in R&D in 2024 (R&D expense rate of 21.8%), continue to launch new products on the market, and consolidate the company's leading position in China as a molecular reagent; At the same time, there is still a large space for import substitution of raw materials such as biological reagents and enzymes, and customers are more willing to substitute domestic products. (2) AD blood test products are expected to increase rapidly: the company has completed AD-related large-scale clinical trials in 24 years and increased academic promotion, formed strategic cooperation with clinical hospitals and large-scale physical examination institutions, and is expected to quickly seize the market with first-mover advantage in 25 years.

(3) Semaglupeptidase & intermediates business is expected to increase with downstream demand: After the launch of Semaglupteptase, the demand for related raw materials and enzymes will increase, and the company has the ability to scale up production and large-scale supply, which can ensure the batch production capacity of tens of kilograms. (4) The microfluidic platform was certified and listed overseas: it successfully obtained the EU access qualification in 24 years, and officially started the global commercialization in 25. (5) The business type continues to be enriched, and the prototype of the platform company is gradually emerging: since its establishment, the company has always focused on the horizontal expansion of the business, and has now formed a stable business - life sciences, growth business - in vitro diagnostics, biomedicine, exploratory business - laboratory consumables, microfluidic platforms, laboratory instruments, animal quarantine terminal reagents, etc., diversified business helps the company continue to broaden the growth space, and the prototype of the platform company is gradually emerging.

Profit Forecast and Investment Rating: Combined with changes in the market environment, we will lower the company's revenue from 2025 to 2026 from 1.982/2.386 billion yuan to 1.588/1.810 billion yuan, and the net profit attributable to the parent company from 366/465 million yuan to 1.12/164 million yuan, and forecast that the revenue and net profit attributable to the parent company in 2027 will be 2.106 billion yuan and 257 million yuan respectively; From 2025 to 2027, the corresponding current stock price PE is 79/54/34× respectively. Considering that the company is a leader in molecular reagents and has multiple growth lines, it maintains a "buy" rating.

Risk warning: changes in downstream demand, new product market expansion is less than expected, market competition is intensifying, etc.