Goldman Sachs on SNIBE (300832.SZ): FY25 and 1Q26 Earnings In Line; Middle East Crisis Poses Headwinds to Overseas Growth; Buy
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Goldman Sachs maintains a Buy rating on SNIBE (300832.SZ) with a 12-month target price of Rmb67, revised down from Rmb72, offering 43.7% upside from the current price of Rmb46.62. The company's FY25 revenue reached Rmb4.577 billion, up 1% year-over-year, while net income fell 11% to Rmb1.62 billion, both aligning with Goldman's estimates. First-quarter 2026 revenue of Rmb1.129 billion and net income of Rmb442 million also met expectations. Domestic revenue declined 10% in FY25 due to DRG/DIP healthcare reforms, while overseas revenue grew 19%. However, logistics disruptions from the Middle East crisis negatively impacted overseas analyzer revenue during the first quarter. Reflecting ongoing domestic policy pressures and Middle East logistics headwinds, Goldman trimmed its 2026–2028 revenue forecasts by 3.0–3.6% and net income estimates by 5.7–6.2%. Despite short-term challenges, the firm expects a 15% earnings CAGR through 2034 driven by import substitution and international expansion. The current valuation remains attractive, trading below the five-year average forward P/E due to policy risks. Key catalysts include a recovery in testing volumes and further overseas expansion.