Event: on August 30, 2023, the company released its annual report for 23 years. 23H1 achieved a revenue of 523 million yuan (+ 41.76%), a net profit of 84 million yuan (+ 41.63%) and a non-return net profit of 92 million yuan (+ 56.51%). Single Q2 realized revenue of 270 million yuan (+ 41%), net profit of 47 million yuan (+ 38.92%), and non-return net profit of 53 million yuan.

The performance maintained rapid growth, with overseas income exceeding 50%:23H1 's revenue and return net profit of 523 million yuan, with an increase of 41.76%. From a business point of view, revenue from 23H1 molecular blocks was 454 million yuan (+ 38.8%) and revenue from scientific research reagents was 68 million yuan (+ 65.02%). From a regional point of view, 23H1 has overseas income of 266 million yuan (+ 45.21%) and domestic income of 257 million yuan (+ 38.35%). Overseas and domestic businesses have maintained rapid development, while the proportion of overseas income has increased to 50.82%, exceeding that of domestic income for the first time.

Continue to consolidate the advantages of multi-speed and good province, the domestic and foreign markets are expected to maintain a good growth trend: the company continues to consolidate the advantages of "multi-fast, good and provincial", including 1) more: molecular block product base continues to improve, customer base continues to expand, as of 23H1 spot varieties reached 103000, and the company's self-developed fluorine-containing boron-containing products have begun to take advantage of scale. In terms of the number of customers, as of 23H1, the company has supplied more than 10,000 customers in the past 12 months, an increase of 18% over the same period last year. 2) Fast: linkage of eight regions at home and abroad to quickly respond to customer needs. As of 23H1, the warehouse is located in three offshore regions of the United States, Germany and India, as well as five cities such as Shanghai, Shenzhen, Tianjin, Chengdu and Wuhan. 3) good: high brand recognition and guaranteed product quality. 4) Province: the company continues to reduce costs and increase efficiency, and the product performance-to-price ratio is excellent. On the one hand, through upstream supply chain management, the company achieves an overall price reduction rate of more than 40% for repeated procurement of raw materials; on the other hand, it continues to optimize inventory turnover. Despite the fierce competition in the industry, the company continues to give full play to its advantages, and the development of markets at home and abroad is expected.

Investment suggestion: from 2023 to 2025, we expect the company to achieve an operating income of 1.301,518,997 million yuan and a net profit of 1.996,355 million yuan. The corresponding PE is 33.39, 24.78 and 18.73 times, respectively, maintaining the "overweight" rating of the company.

Risk hints: the risk of loss of technical personnel, the risk of drug molecular block design, the risk of inventory price decline caused by the decline of inventory turnover, the risk of decline in gross profit margin caused by intensified competition, the risk of exchange profit and loss, and so on.