This report is read as follows:
2023H1 achieved full coverage of inorganic testing products, and revenue increased by 26% compared with the same period last year. It is expected that the new products of quadrupole-time-of-flight mass spectrometer and gas chromatography-mass spectrometry will broaden the business of organic detection.
Main points of investment:
Maintain the "overweight" rating. We maintain the forecast of the company's vested net profit from 2023 to 2024 and increase in 2025 to 0.67 soybean 0.92 trillion yuan, respectively, and the corresponding EPS is 0.990.38 pound 1.70 yuan respectively. The company has achieved full coverage of the inorganic detection product line, and the subsequent launch of quadrupole-time-of-flight mass spectrometry and gas chromatography-mass spectrometry is expected to expand the organic detection business. Maintain the target price of 57.73 yuan and maintain the overweight rating.
2023H1's revenue rose 26% year-on-year, in line with expectations. 1) 2023H1 achieved a revenue of 196 million yuan, an increase of 26% over the same period last year, and a net profit of 22.83 million yuan, an increase of 3% over the same period last year. 2023H1's consolidated gross profit margin fell 3.55 per cent year-on-year, mainly due to costs such as rising raw materials and increased depreciation in new production lines, which led to a 35 per cent increase in operating costs in absolute terms. 2) the net operating cash flow narrowed to-8.4304 million yuan, an increase of 73% over the same period last year, mainly because the company increased its inventory reserves and reduced the cash paid for goods and services in order to cope with the rising prices of raw materials and the long procurement cycle.
New research and development projects of full-spectrum direct reading spectroscopy and gas chromatography-mass spectrometry have been added, and the investment in research and development has increased year by year.
The company continues to research and develop projects to expand the product layout of high-end analytical instruments. 2023H1, the company added full-spectrum direct-reading ICP spectrometer, gas chromatography-single quadrupole mass spectrometer and other experimental analytical instrument research and development projects, 2023H1 R & D expenditure of 21.72 million yuan, an increase of 27% over the same period last year, and R & D investment increased year by year.
The inorganic detection product line has been fully covered, and the new products of gas chromatography-mass spectrometry and quadrupole-time-of-flight mass spectrometer are expected to expand the organic detection business. In May 2023, the company launched ICP emission spectrometer, atomic absorption spectrometer and atomic fluorescence spectrometer, realizing the comprehensive coverage of inorganic element detection product line. The high-end product ICP-Q-TOF-MS function machine has been completed and is expected to be accepted by the end of 2023, and the GC-MS hyphenated instrument has been established. We believe that the launch of new products is expected to improve the organic testing business.
Risk hint: the risk of technology iteration and the risk of raw material price fluctuation.