Event: on October 19, 2023, the company released its third quarterly report for 2023. In the first three quarters of 2023, the company's total operating income was 129 million yuan, down 42.29% from the same period last year; the net profit was 2 million yuan, down 95.99% from the same period last year; and the net profit was-13 million yuan, down 135.91% from the same period last year.
Affected by the pace of project delivery, performance continued to decline in the third quarter. Due to the lack of major project planning and acceptance nodes in 2023, the company's revenue and profits continued to decline in the second quarter. In the third quarter alone, the company achieved 36.425 million yuan in revenue, down 51.44% from the same period last year. The net profit returned to the home was-8.508 million yuan, down 160.7% from the same period last year.
① profitability remained stable: in the first three quarters of 2023, the company's gross profit margin was 50.04%, an increase of 0.48% year-on-year, and the overall gross margin level was not affected by the decline in revenue.
② expenses continued to grow: the company actively opened up the market and invested in R & D. in the first three quarters, sales expenses and R & D expenses increased by 25.1% and 21.1% respectively compared with the same period last year.
③ contract liabilities increased month-on-month: contract liabilities in the third quarter were 125 million yuan, up 39% and 7% respectively over the second quarter of 2023 and the end of 2022, indicating that the company's current orders have increased to a certain extent compared with the previous quarter.
The isotope production project starts construction, and the preparation of radionuclides is expected to create a new growth curve. The domestic demand for nuclides has accelerated, with the annualized demand for eight commonly used nuclides maintaining a growth rate of 5% and 30%. In this context, the National Atomic Energy Agency jointly issued the medium-and long-term Development Plan of Medical Isotope (2021-2030) in 2021, which requires the improvement of the capacity of localization of medical isotopes. According to the official account of the company, the construction of the high-end nuclear technology and equipment manufacturing base in Haiyan County, Zhejiang Province in the first half of the year began in October this year and is expected to be completed in January 2025. The base focuses on the development and production of intelligent equipment for the application of nuclear chemical industry and nuclear technology, provides equipment automation solutions for isotope and nuclear drug production lines, and expands the whole production line automation equipment for equipment production and isotope production. We believe that under the background of the localization of medical isotopes, the company will be the first to benefit by making full use of its technological advantages in the nuclear industry and laying out the track in advance to expand related equipment and production lines.
Maintain the "overweight" rating. The company's short-term performance fluctuation does not change the company's core position in the industrial chain, benefiting from the intelligent trend of nuclear power and nuclear fuel cycle industry, the nuclear industry intelligent equipment market is improving for a long time. However, due to the seasonal fluctuations in the delivery rhythm of large projects, the company's performance has been affected to a certain extent. We reduced the return net profit of the company from 2023 to 2025 to 1.33 billion yuan, 2.01 billion yuan and 2.49 billion yuan respectively, corresponding to a PE of 31. 5%.
4, 20.8, 16.8 times. The company is still one of the highest "nuclear" targets in the share of revenue in the secondary market, with scarcity and sustained growth, and maintains an "overweight" rating.
Risk prompt events: the risk of policy change; the risk of high customer concentration; the risk of performance fluctuations caused by discontinuous acquisition of orders; the risk that the promotion of fund-raising projects is not as expected; the seasonal risk of performance; the risk that the information used in research and reporting is not updated in a timely manner; the risk of deviation in industry scale measurement.