Event: the company announced its semi-annual report of 2023 that 2023H1 realized operating income of 185 million yuan, an increase of 4.57% over the same period last year, and a net profit of 31 million yuan, down 38.49% from the same period last year. In 2023, the company's Q2 realized operating income of 99 million yuan, an increase of 15.9% over the same period last year, and a net profit of 14 million yuan, down 28.98% from the same period last year.

The gross profit margin is stable and the expense rate has increased significantly. The company's 2023H1 management expense rate (excluding R & D expenses) is 16.9%, an increase of 4.6pct over the same period last year, mainly due to a low base in the same period last year; sales expense rate of 8.2%, an increase of 1.0pct over the same period last year; financial expense rate of 0.2%, an increase of 1.3pct over the same period last year; and R & D expense rate of 14.2%, an increase of 4.7pct over the same period last year. The company's 2023H1 gross profit margin was 59.5%, down 0.2pct from the same period last year, and the net profit rate was 16.7%, down 11.7pct from the same period last year.

The revenue side is mainly affected by weak terminal demand, and the company's revenue growth rate is more than 20% after excluding the base. Since April 2023, the terminal demand of the industry has been weak, and the growth of the company's operating income has slowed down; the company's sales revenue was less in January this year, and the base was higher in June last year, resulting in a slowdown in revenue growth in the first half of this year compared with the same period last year; in addition, the income of specific products such as streptavidin and guanidine isothiocyanate accounted for a relatively high proportion in the previous year, which also affected the growth rate of operating income this year. Excluding revenue from the above-mentioned specific products, the real growth rate in the first half of 2023 was 21.22%.

The promotion of fund-raising projects leads to the rapid growth of short-term expenses, and equity payment also affects the growth rate of the profit side. Since the second half of 2022, with the promotion of fund-raising projects, the company's managers and R & D personnel have increased rapidly, resulting in a rapid increase in personnel compensation expenditure, and the share payment generated by equity incentives has also increased the corresponding expenses. among them, the share payment fee in the first half of 2023 is 3.62 million yuan, regardless of the impact of share payment, the net profit belonging to the shareholders of the listed company is 34.53 million yuan.

Maintain a "buy" rating. Based on the stable demand of colleges and universities, overseas business will gradually contribute to the increment. It is estimated that the EPS in 23-25 will be 0.490.65max 0.84 yuan, maintaining the "buy" rating.

Risk hint: research and development is less than expected risk, competition aggravates risk, information system and network security risk