Sustained high performance growth, global business layout opens up incremental space

2023H1, the company realized operating income of 523 million yuan, an increase of 41.76% over the same period last year, a net profit of 84 million yuan, an increase of 41.63% over the same period last year, and a non-return net profit of 92 million yuan, an increase of 56.51%. Looking at Q2 alone, the company achieved operating income of 270 million yuan, an increase of 41.00% over the same period last year, an increase of 7.14% over the same period last year, a net profit of 47 million yuan, an increase of 38.92% over the same period last year, an increase of 27.03% over the previous year, and a non-return net profit of 53 million yuan, an increase of 55.88% over the same period last year and 35.90% month-on-month growth. With the continuous improvement of the breadth and depth of the products, the company's business scale continues to expand, and both the revenue end and the profit end are growing rapidly. At the same time, the company actively promotes the global business layout, enhances the brand influence of independent brands "Bidder", "BLD" and "AmBeed" at home and abroad, and the brand recognition is improving year by year. Considering the fierce competition in the industry, we downgrade our profit forecast for 2023-2025. It is estimated that the net profit of return to the mother will be 185,244,333 million yuan respectively (the original estimate is 2.04x279max 382 million), and that of 2.03 EPS 2.69max 3.66 yuan. The current share price corresponds to 37.4pm, 28.3pm, 20.8 times, in view of the company's leading position in the industry, and is expected to continue to increase the market share. Maintain a "buy" rating.

Actively build a new product line of molecular blocks and serve the steady growth of the number of customers. The company adheres to the business philosophy of "multi-speed, good and saving" and is committed to creating the most complete and innovative molecular block product library in China; by the end of June 2023, the number of spot products has reached 103000, far exceeding the abundance of domestic competitors. At the same time, the company continues to expand new lines, 2023H1 R & D investment reached 27 million yuan (+ 45.02%), R & D personnel reached 146people (+ 18.70%); boric acid and borate esters, fluorinated block product lines continue to expand and continue to grow, has initially shown a scale advantage. In addition, the company has supplied more than 10,000 customers in the past 12 months, an increase of about 18% compared with 2022, and continues to provide customers with quality and efficient services.

With the active layout of the eight major regional centers in the world, during the period of rapid development of overseas business, the company has laid out three overseas regional centers in the United States, Germany and India, and set up positions in Shanghai, Shenzhen, Tianjin, Chengdu and Wuhan. through the global regional linkage to greatly improve operational efficiency, greatly shorten the customer's new drug research and development cycle, the global supply chain system has begun to take shape. 2023H1's overseas revenue reached 266 million yuan, an increase of 45.21% over the same period last year, and its overseas business is in a period of rapid development.

Risk hints: the decline of market demand for drug discovery, the loss of core members, the deterioration of industry competition, and so on.