Events:
Wo Xin Instruments recently released a report on the first half of 2023: the company achieved 160 million (+ 44.2%) in revenue in the first half of 2023. It is mainly due to: 1. The bidding process in the field of environmental monitoring has been carried out normally, and the newly signed projects in the first half of 2023, the normal execution projects signed in 2022 and the delayed implementation acceptance projects in 2022 have all been gradually implemented, checked and confirmed in the first half of 2023, and the operating income has increased year on year. 2. The company's business expansion in medical, laboratory and other new areas is smooth, and the revenue in the new business areas has increased compared with the same period last year. The net profit loss of 34.315 million yuan in the first half of 2023 was mainly due to a decline in the comprehensive gross profit margin in the first half of 2023, a large increase in R & D expenses over the same period last year, and delays in sales rebates and government subsidies to varying degrees, resulting in increased credit impairment losses and reduced other income. In the first half of 2023, the company realized a non-return net profit loss of 40.841 million yuan. From a quarterly point of view, 2023Q2 achieved an income of 100 million (+ 57.0%), a net profit loss of 17.953 million yuan, and a non-return net profit loss of 18.173 million yuan.
Maintain a high level of R & D investment, core key technologies can be independently controlled to help domestic alternative companies continue to invest in high-intensity R & D, 2023H1 R & D investment of 37.221 million (+ 19.2%). Attach great importance to the autonomous control of the core key components, including electrospray ion source, electron bombardment ion source, vacuum ultraviolet single photon, ion detector, time-of-flight mass analyzer and other key components.
In the aspect of high-end general-purpose parts (high-end laser, molecular pump, gas chromatography-mass spectrometry), the company continues to jointly tackle key technical problems with relevant domestic universities and scientific research institutions, gradually realize the autonomy and localization of the R & D and production of high-end general-purpose parts, and basically realize the independent control of the core key technologies.
In terms of products, the company released a triple quadrupole LC-MS instrument that meets the application needs of most users in the market in 2022, realizing the three stages of technological innovation, breakthrough in core components and machine industrialization made in China. it can be widely used in clinical diagnosis, food safety, public security safety, environmental testing, education and scientific research and other fields. The quadrupole time-of-flight liquid-mass spectrometer (LC-QTOF 7000) released by the company in May 2023 has successfully completed the development and verification of a number of core technologies and realized the domestic replacement of a number of key components.
Investment advice and profit Forecast
The company signed 160 million new orders in the first half of 2023, the business continued to recover, the continuous breakthroughs in the field of high-end mass spectrometer technology, the continuous introduction of new products, the vigorous development of clinical mass spectrometry and laboratory instruments, and the stack of broad import substitution space. The company's revenue from 2023-2025 is expected to be 4.0pm 5.5pm, a growth rate of 43.6%, 35.9% and 29.3%, respectively. The net profit of homing is 20.7 million yuan, EPS is-0.6 pound, and PE is-52.0, 159.3 and 110.1, respectively. Give a "buy" rating.
Risk hint
Clinical mass spectrometry and other new areas to expand less than expected risks, new technology research and development risks, industry policy risks and so on.