The revenue side is solid, and the gross profit margin is down from the same period last year. In the first half of 2023, the company realized revenue of 2.951 billion yuan (year-on-year + 21.58%), net profit of 426 million yuan (+ 5.82%), and non-return net profit of 393 million yuan (+ 5.72%). Of this total, 2023Q2 has revenue of 1.528 billion yuan (year-on-year + 28.43%), net profit of 195 million yuan (+ 2.01%), and non-return net profit of 167 million yuan (+ 3.56%).
The gross profit margin fell 4.12 percentage points in the first half of 2023 compared with the same period last year, mainly due to the decline in prices caused by intensified competition, and the superimposed overseas layout was in the pre-investment stage. Affected by the decline in gross profit margin, the growth rate at the profit end is lower than that at the income end.
Sub-sector performance: preparation Division, Food Division performance is eye-catching. In the first half of 2023, the company is divided into four major business departments: preparation, biotechnology, engineering and food based on the function of the product. Preparation Division: benefiting from the rapid development of testing and packaging machines and systems, it maintained steady growth in the first half of 2023, with an income of 1.581 billion yuan (year-on-year + 26.63%). Biotechnology Division: the income in the first half of 2023 was 800 million yuan (+ 7.18% compared with the same period last year). Among them, the business of single machine and system of API increased rapidly, while the business of bioengineering and life sciences was under pressure. Engineering Division and Food Division: the income in the first half of 2023 was 265 million yuan (+ 11.77% compared with the same period last year) and 149 million yuan (+ 59.49% compared with the same period last year) respectively.
Overseas income has declined in stages, but the long-term development trend remains unchanged. In the first half of 2023, the company's overseas business revenue was 581 million yuan (year-on-year-6.93%), accounting for 19.70% of the total revenue. Due to the high product complexity and long overall delivery cycle in overseas markets, the revenue recognition of delivered orders and after-sale technical support are still in the perfect stage, superimposed with a high base in the same period in 2022, overseas revenue declined slightly in the first half of 2023. With the gradual improvement of the company's overseas layout, we think it is expected to inject new momentum into the company's development.
Investment advice: there is plenty of room for overseas markets to maintain a "buy" rating. In the first half of 2023, the revenue end of the company is sound, and the growth rate of the preparation Division and Food Division is eye-catching. Taking into account the decline in gross profit margin and the declining prosperity of the industry caused by intensified competition, the company's profit forecast is lowered. It is estimated that the net profit of homing in 2023-2025 is 8.99 billion yuan (1.337 billion yuan), with a year-on-year growth rate of + 6.2%, 14.9% and 17.7%. With the completion of the previous investment layout, technological innovation drives internationalization, and the share of overseas income is expected to increase. Provide a new engine for the company.
Risk tips: overseas competition risk, supply chain recovery is not as expected, R & D failure risk.