Event: on August 28, 2023, the company released its semi-annual report 2023. In the first half of 2023, the company achieved operating income of 2.951 billion yuan, an increase of 21.58% over the same period last year, a net profit of 426 million yuan, an increase of 5.82% over the same period last year, and a non-net profit of 393 million yuan, an increase of 5.72% over the same period last year.
The business achieved rapid growth in the first half of the year and is optimistic about the recovery of orders for the whole year. Income grew rapidly in the first half of 23, while contract liabilities of 3.622 billion yuan (- 7.48%) remained at a high level. The annual performance trend was good, and newly signed orders were resilient. From a quarterly point of view, 23Q2 achieved revenue of 1.528 billion yuan (+ 28.43%) and net profit of 195 million yuan (+ 2.01%). The proportion of sales in the high-margin sector reduced and the preparation for impairment of superimposed assets led to slower profit growth than income growth.
The injection business drives performance growth, and the domestic growth rate is obvious. From a business point of view, the company was adjusted into four major business departments, namely, preparation, biotechnology, engineering, food, etc., with income of 1.581 billion yuan (+ 26.63%, 53.38%), 800 million yuan (+ 7.18%, 27.12%), 265 million yuan (+ 11.77%, 9%) and 149 million yuan (+ 59.49%, 5.06%) respectively. Among them, the injection revenue in the preparation sector was 1.309 billion yuan (+ 22.23%), accounting for 44.36% of the revenue (+ 0.24pp), driving the company's performance growth. In October 22, the company was approved to actively expand the production capacity of back-end equipment such as freeze-dryers, and the injection business continued to give full play to its leading advantages and sustained rapid growth. at the same time, it cut into new businesses such as CGT and consumables to further lay the foundation for industrialization. From a regional point of view, domestic income is 2.369 billion yuan (+ 31.46%), accounting for 80.30% (+ 6.04pp), and overseas income is 581 million yuan (- 6.93%), accounting for 19.70% (- 6.04pp). The reduction of overseas COVID-19 business and delayed delivery of orders lead to fluctuations in overseas revenue, but in the medium and long term, the company actively develops the global high-end market, especially the European and American high-end market, to further open up the market space.
The gross profit margin has declined and the rate of the three fees has remained stable. In the first half of 2023, the company's gross profit margin was 38.94% (- 3.23pp). The decline in the proportion of high-margin sectors led to a significant decline in gross profit margin. In the first half of 23, the company's sales expenses were 147 million yuan (+ 34.43%), and the sales rate was 4.99% (+ 0.48pp), which was caused by the increase in sales staff and marketing. The management fee is 255 million yuan (+ 18.91%), the management rate is 8.63% (- 0.19pp), and the rate remains stable. The R & D cost is 164 million yuan (+ 8.43%), and the R & D rate is 5.56% (- 0.67pp). Financial expenses-48 million yuan (- 511.36%), financial rate-1.63% (- 2.12pp).
Profit forecast and investment advice: combined with the results in the first half of the year and the development of various business segments, we adjusted the company's operating income from 2023 to 2025 to 65.77,79.30 and 9.599 billion yuan (before the adjustment was 66.98,82.49 and 10.179 billion yuan). Year-on-year growth of 20.25%, 20.56% and 21.06% The net profit of homing was 9.64,11.33 and 1.34 billion yuan respectively (the pre-adjustment value was 10.39,12.84 and 1.585 billion yuan), an increase of 13.84%, 17.52% and 18.32% over the same period last year.
Considering that the company is a rare leader in the integration of equipment and consumables, there is a wide space for domestic alternatives, and the superimposed overseas business will further open up the market space and maintain the "buy" rating.
Risk hint: the product volume is not as expected, the product export is not as expected, the capacity expansion is not as expected, the public data used in the research report may have the risk of lagging behind or not updating in time, and the industry scale measurement deviation risk.