Chutian Science and Technology issued a semi-annual announcement for 2023: in the first half of 2023, revenue reached 3.356 billion yuan, up 16.92% from the same period last year; net profit from home was 267 million yuan, down-10.82% from the same period last year; and net profit from non-return was 268 million yuan, down 8.81% from the same period last year.

Main points of investment

Revenue is growing steadily, and profits are expected to continue to rise.

In the first half of 2023, the company achieved revenue of 3.356 billion yuan, an increase of 16.92% over the same period last year. Among them, the business scale of bioengineering solutions such as liquid distribution, chromatography equipment, ultrafiltration systems and microspheres increased significantly, and the revenue of bioengineering solutions and individual machines reached 602 million yuan, an increase of 32.8% over the same period last year. In addition, the company's aseptic preparation, pharmaceutical water, solid preparation and other production equipment have excellent performance, high customer recognition and sufficient on-hand orders. During the reporting period, aseptic preparation solutions and stand-alone, pharmaceutical water equipment and engineering system integration, solid preparation solutions and stand-alone contributed revenue of 898 million yuan / 451 million yuan / 304 million yuan respectively, an increase of 30.04% 102.33% and 67.5% respectively over the same period last year. During the reporting period, the company's return net profit was 267 million yuan, down-10.82% from the same period last year. With the release of the procurement scale effect of the company group and the improvement of cost competitiveness, product profitability is expected to further improve.

The development of overseas markets has achieved remarkable results, and the promotion of new products has been actively promoted.

During the reporting period, the company gave full play to the advantages of international SSC overseas markets, through the use of global customer centers, holding international customer open days and other activities, to achieve a significant increase in the frequency of on-site visits to customers at home and abroad, and a steady increase in overseas orders.

In the first half of 2023, the European region achieved revenue of 384 million yuan, an increase of 62.1% over the same period last year, and overseas markets opened up smoothly. At the same time, Chutian Siyou has established order cooperation with dozens of customers. Chutian Microsphere and Chutiansi have all achieved further order growth for Kang. A variety of products in the field of complex preparations have been introduced to the market, and the domestic layout of nuclear drugs is leading, which is expected to achieve the extension of the medical end to the medical end.

The competitiveness of biological front end has been continuously improved, and the pace of the construction of pharmaceutical industry chain has been accelerated.

In the first half of 2023, the construction of the company's biomedical and life sciences plate is progressing smoothly. Among them, the company set up Chutianke instrument in April, mainly engaged in high-end centrifuges and other scientific instruments, focusing on the front-end neck project of bioengineering; at the same time, Chutiansi launched three main equipment for Kang: intelligent cell centrifuge system, intelligent cell magnetic sorting system and intelligent cell culture factory, which provide equipment solutions for the whole technological process for cellular drugs. In addition, the company has set up a biopharmaceutical process center to further consolidate its competitive advantage in the field of biomedicine.

In June 2023, the company also set up Chu Tian Jing Bang, mainly engaged in purification project, EPC project and so on. As of the release date of the China News, the company's business covers nine sectors, such as pharmaceutical water production, bioengineering, aseptic preparation, solid preparation, testing package, etc., and has formed a complete pharmaceutical industry chain from design, engineering, equipment and services. With the overall solution capabilities of water agents and solid preparations, the product layout of "one vertical, one horizontal and one flat platform" has been continuously improved.

Profit forecast

It is predicted that the income of the company from 2023 to 2025 is 76.91,91.92 and 10.94 billion yuan respectively, and the EPS is 1.11,1.37,1.66 yuan respectively. The current stock price corresponds to PE 11.3,9.2,7.6 times respectively. The company is one of the leading domestic pharmaceutical equipment enterprises, the pharmaceutical industry chain is complete, the front-end competitiveness of bioengineering is outstanding, and it is optimistic about the volume of follow-up new products. Coverage for the first time, giving a "buy" investment rating.

Risk hint

Market competition aggravates risks, technological innovation falls short of expectations, product delivery falls short of expectations, downstream demand recovers slowly, new orders fall short of expectations, industry policy and government regulatory risks, geopolitical risks