Sample pre-processing instrument leader, business covers the laboratory analysis of the whole industry chain. The company's three main businesses are experimental and analytical instruments, clean and environment-friendly laboratory solutions, consumables and customer service, covering drug quality testing, new drug development, new material research, radionuclide separation, medical diagnosis, disease control, life science and many other national key development areas. The company has many advantages, such as rich product line of its main business, cost advantage of one-stop service, stable structure of downstream customers, high gross profit margin, etc., and as the proportion of agency business income decreases year by year, the proportion of independent R & D products increases year by year, and the gross profit margin is expected to further increase. At present, the company's products have been sold to more than 90 countries around the world, serving nearly 30,000 customers.

Professional teams build high-tech barriers, and R & D investment grows for a long time. Dr. Hook, Chairman of the Board, was the Chief researcher of TJA and General Manager of Greater China, and presided over and led the first commercial inductively coupled plasma mass spectrometry (ICP-MS) design in the United States. The core R & D team accounts for more than 20% of the company, all from well-known universities and scientific research institutes, and R & D investment is increasing year by year. By the end of 2021, the company has obtained 85 authorized patents, 29 software copyrights and 40 trademarks, among which D-MASTER automatic digestion instrument has won the BCEIA Gold Award in 2021 for its innovation in automation and intelligence.

Independent research and development of ICP-MS contributes to a new increment, and there is a huge room for domestic substitution. In 2019, the company set up a mass spectrometry technical team and independently developed ICP-MS mass spectrometer. The product performance is internationally competitive and has been officially launched on the market on May 20, 2021, focusing on the promotion of medical / pharmaceutical / semiconductor testing field. According to SDI data, the market share of mass spectrometers accounts for about 8% of the global market share of experimental analytical instruments in 2019. As an irreplaceable high-end equipment, the permeability of mass spectrometers is expected to be further improved in the future. According to Zhiyan consulting data, the market size of mass spectrometer in China is about 14.2 billion yuan in 2020. Calculated according to the average annual compound growth rate of 7.70%, it is predicted that the market size of mass spectrometer will exceed 20 billion yuan by 2025, and the market prospect is good in the future. At present, mass spectrometers still rely on imports, and the market of experimental analytical instruments is basically occupied by international giants such as Semefeld and Agilent, and there is a huge space for domestic substitution. The demand for downstream applications will promote the steady growth of the global mass spectrometer market. The domestic mass spectrometer market started relatively late. With the development of science and technology and the establishment of high-tech industry in our country, it will provide a powerful technical guarantee for the development of high-end instruments and equipment in the experimental analytical instrument industry, so as to achieve product upgrading and win more market and development space for experimental analytical instruments in China.

Drawing lessons from the development road of Saimufei, Leibotec endogenesis & M & An is expected to become the dark horse of domestic instrument industry. The company has acquired American veteran instrument brands CDS, 3M Company Empore solid phase extraction product line, horizontally expanded volatile gas detection sample pre-treatment products, vertical layout of high-end consumables production line, with sales and after-sales technical service centers in major large and medium-sized cities across the country, and wholly-owned subsidiaries in the United States and Hong Kong, China, established a domestic-based, extended United States and Europe extensive sales network. Referring to the growth path of Seamofei, Leibutec is expected to become the dark horse of domestic instruments in the future by strengthening product R & D and production and localized service capabilities, and with the help of capital epitaxial mergers and acquisitions.

Investment suggestion and valuation: as the leader of sample pre-processing, the company covers the whole industry chain of laboratory analysis, technical barriers attach great importance to research and development, and the three business sectors go hand in hand. With the new increase in the contribution of independent research and development of ICP-MS mass spectrometer, the company's performance is promising in the future. We estimate that the company's income from 2022 to 2024 will be 440 million yuan, 530 million yuan and 630 million yuan respectively, with a growth rate of 18.7%, 20.1% and 20% respectively, and its net profit will be 80 million yuan, 95 million yuan and 116 million yuan respectively, with a growth rate of 15.5%, 18.9% and 22.2% respectively. Cover for the first time, give "overweight" investment rating.

Risk tips: product research and development is not as expected, cross-border operation is not as expected, agency business change risk, market competition intensifies, the risk of the impact of COVID-19 epidemic.