AmoyDx (300685.SZ): Earnings review: 3Q26 revenue slightly miss while NP in line; TP down to Rmb25; Buy

AmoyDx released its 3Q26 results on Oct 22, 2026. Its revenue (Rmb310mn, +8% yoy) slightly missed GSe (Rmb331mn). The company attributed the miss in part to price reductions following new pathology billing guidelines issued by the National Healthcare Security Administration, and in part to foreign currency settlement of overseas revenue, particularly from Japan, where continued JPY depreciation resulted in lower-than-expected revenue when translated into RMB. Net profit (Rmb81mn, +10% yoy) was in line with GSe (Rmb81mn), supported by an effective tax rate below our estimate. We revise our model: revenue of Rmb1,242mn/1,429mn/1,643mn and net profit of Rmb365mn/431mn/483mn for 2026E-28E. Our updated 12-month target price is Rmb25 (previous Rmb26), based on a two-stage DCF assuming a 10.5% discount rate and 3% terminal growth. Maintain Buy. AmoyDx is a leading player in China's cancer companion diagnostics industry;