What happened: recently, the company released its mid-2022 report that the company's income in the first half of 2022 was 156 million yuan, down 14.62% from the same period last year, and the net profit returned to its mother was 22 million yuan, down 35.18% from the same period last year.

Comments:

As a result of the epidemic, the delivery side was affected and there were more orders on hand. On the revenue side, the company's income in the first half of 2022 was 156 million yuan, with a decrease of 14.62%. Quarterly growth rates of 2021Q1-Q4 and 2022Q1 were 77.62%, 9.18%, 0.32%,-18.96%,-2.60% and-23.95%, respectively. The main reason for the change in growth rate is that the delivery of orders has been affected by the multi-point spread of the domestic epidemic since April. At the profit end, the company achieved a net profit of 22 million yuan in the first half of 2022, with a decrease of 35.18%, a decrease of 35.18%, and a growth rate of-1.66%, 15.14%,-44.87%, 18.02%,-47.93%, 49.22%, 18.14%, 10.61%, respectively, for sales expenses, 5.00pct, R & D and 4.32pct, respectively. The rate of management expenses is 7.75%, with an increase of 1.04pct. By the end of the report, the company had more orders on hand, and the inventory increased by 36.53%. We believe that there are a wide range of downstream applications of the company's products, although the delivery side is affected during the epidemic, but the production side and orders are less affected, the delivery pace is expected to accelerate in the second half of the year, the expense rate is also expected to be low, and the annual performance is guaranteed.

Sample pre-processing equipment business continues to expand the product line, driving long-term steady growth. In the first half of 2022, the company's sample pretreatment equipment business continues to expand new product lines, at the same time to achieve iterative upgrading of old products, and constantly enhance market competitiveness. In the first half of the year, the company released a new product PT2000 automatic solid-liquid purge and trap instrument, which originated from CDS Company in the United States, which is used for the enrichment and preparation of volatile organic compounds (VOC) in liquid and solid samples, the new product improves the problems of cross-contamination and residue, and optimizes the software function to improve the adaptability of the domestic market. In addition, as a leading domestic sample pre-processing equipment company, the influence of the international market is increasing, and it is expected to speed up the expansion of new fields and foreign markets. Last year, rapid progress was made in the field of radionuclide analysis in the nuclear industry, with an income of 5.5135 million yuan. In May this year, the company launched an one-stop solution for element analysis of the lithium battery industry chain, which can effectively solve the problem of difficult digestion of some materials in lithium battery electrodes. We believe that there are many product categories of sample pre-processing and analytical instruments, and there is a large market space, and the company will expand more categories and new areas through R & D drive, and is expected to achieve steady growth in the long run.

The mass spectrometer plate is expected to open the second growth curve, and the localization process of high-end mass spectrometry will be accelerated. The company released inductively coupled plasma mass spectrometer LabMS 3000 in the first half of 2021. Last year, it achieved a number of sales in semiconductor, medical and traditional fields, which is the first application of domestic ICP-MS in the semiconductor industry chip production line. In the first half of this year, it also realized the repurchase of the semiconductor industry head chip manufacturers. The company has further increased its investment in the research and development of the mass spectrometer, and two new projects under research last year are progressing smoothly: 1) Inductively coupled plasma quadrupole-time-of-flight mass spectrometer (ICP-Q-TOF-MS), which can realize the basic function of simultaneous detection of single cell and multi-elements, is a high-end analytical instrument developed for scientific research and development of cells and elements. there are no mature related products in China, and there are a wide range of downstream applications. It includes toxicology research, drug development and other fields, with a total planned investment of 12 million. At present, the assembly of the principle prototype, preliminary debugging and functional confirmation have been completed, and the spectrum is stable, and further debugging will improve the sampling speed and sensitivity. 2) Inductively coupled plasma tandem quadrupole mass spectrometer (ICP-MS-MS) is mainly aimed at solving the requirements of higher detection sensitivity, stronger anti-interference ability and lower detection limit in semiconductor and other fields, with a total planned investment of 20 million. At present, two sets of principle testing platforms have been built, and the function of tandem mass spectrometry has been completed. The preliminary test indicators basically meet the requirements, and the hardware will be further improved. We believe that the mass spectrometer has been monopolized by foreign investors for a long time, and domestic enterprises are constantly narrowing the technological gap between domestic and foreign investors. under the background of reverse globalization, the domestic substitution of high-end analytical instruments is expected to speed up, and there is more room for localization. The company's high-end mass spectrometry products have achieved the first domestic application in the domestic chip production line, the technical strength has been recognized by semiconductor head manufacturers, and the mass spectrometry plate is expected to become the company's second growth pole.

Profit forecast: we expect the company to achieve a net profit of 87 million yuan, 110 million yuan and 137 million yuan in 2022-2024, with a corresponding EPS of 1.30,1.64 and 2.04 yuan per share, respectively, and the corresponding share price PE is 30 times, 23 times and 19 times respectively.

Risk factors: the risk of industry policy change, the risk of intensified competition in the industry, the risk of fluctuation of raw material prices, the risk of new business expansion falling short of expectations, etc.