Under the influence of multiple factors, short-term performance was under pressure. The “product+channel” two-wheel drive widened the moat 2023H1. The company's revenue was 185 million yuan, up 4.57% year on year; net profit returned to 3091 million yuan, down 38.49% year on year; net profit after deducting non-return net profit of 29.81 million yuan, down 35.01% year on year. Looking at Q2 alone, the company achieved revenue of 98.91 million yuan, up 15.90% year on year; net profit of 13.66 million yuan, down 28.98% year on year; net profit after deducting non-return net profit of 12.54 million yuan, down 28.79% year on year. The company's performance was under pressure in the short term, mainly due to weak demand for industry terminals, promotion of fund-raising projects, personnel expansion and equity incentives. At the same time, specific products such as streptomycin and guanidine isothiocyanate accounted for relatively high revenue during the same period, which affected the revenue growth rate of 2023H1. After excluding related products, the actual revenue growth rate for 2023H1 reached 21.22%. The company insists on independent research and development to expand the product line, and continuously strengthens channel-side construction, which is expected to open up space for future growth. Considering the slowdown in downstream demand and the high pressure on the company's cost side, we lowered our profit forecast for 2023-2025. We expect net profit to be 0.93/1.17/145 million yuan (originally expected to be 132/174/233 million yuan), EPS is 0.47/0.59/0.73 yuan, and the current stock price corresponding P/E is 40.0/31.6/25.4 times. Given that the company's integrated “R&D, production and marketing” construction highlights its core competitiveness, we maintain the “buy” rating.
High R&D investment accelerates the development of new products, and the overseas layout is expected to contribute to additional volume. The company insists on independent research and development, conducts technical research on key scientific research reagent varieties, and the integrated model of R&D, production and marketing is beginning to take shape. On the product side, the company has accelerated the development of new products with a mature R&D process system and continues to expand its product line in the field of bioscience. Currently, there are more than 40,000 products in stock, and the product market share is gradually increasing. Some products have reached the same international technical level and achieved some import substitution, gradually breaking the trend of absolute monopoly of foreign companies. 2023H1. The company has obtained a total of 6 patents, including 3 invention patents and 3 utility model patents; R&D investment reached 26.3557 million yuan, up 56.86% year on year, accounting for 14.21% of total revenue (+4.74pct); 179 R&D personnel, up 36.64% year on year, accounting for 30.29% of the company's total number of people. On the channel side, the company used the e-commerce model to take the lead in achieving online sales. The number of newly registered users is increasing, and customer stickiness is constantly increasing. At the same time, the company actively promotes the construction of offline storage bases to ensure timely delivery, and actively lays out overseas markets through 3 overseas subsidiaries, with a clear medium- to long-term growth path.
Risk warning: Increased market competition, loss of core members, failure in new product development, etc.