Jinwu Financial News | According to CMB International Development Research Report, Yao Ming Kangde (02359/603259)'s 1Q performance was stable in a difficult environment. Revenue fell 11.0% year on year to 7.98 billion yuan. Excluding COVID-19 commercialization projects, revenue fell 1.8% year on year, and adjusted non-IFRS net profit fell 18.3% year on year to 1.91 billion yuan. Management maintains the 2024 performance guidelines. Revenue is expected to reach 383 to 40.5 billion yuan. Excluding COVID-19 commercialization projects, it will increase by 2.7 to 8.6%. At the same time, the non-IFRS net interest rate is expected to remain at a level comparable to 2023.
The bank maintained Yao Ming Kangde's purchase rating, and the target price for A-shares was lowered from RMB 67.3 to RMB 53.23. The bank expects the company's revenue to grow by -5.6%/+10.0%/+12.5% year on year in 2024E/25E/26E, and adjusted non-IFRS net profit up -12.4%/+10.5%/+16.4% year on year. The adjusted PE corresponding to the current stock price is 13.5x/12.2x/10.5x, respectively.