This report is read as follows:
Q3 company revenue maintained steady growth, exchange losses led to a greater increase in financial expenses, while increasing R & D investment to deduct non-net profits, rich product reserves continue to cultivate new growth points. Maintain the overweight rating.
Main points of investment:
Maintain the overweight rating. Considering the exchange gain and loss of foreign exchange and R & D investment, the forecast of EPS from 2023 to 2025 will be reduced to 0.62 yuan 0.78 yuan 0.96 yuan (originally 0.66 yuan 0.84 yuan 1.07 yuan). With reference to the valuation of comparable companies, the target price of PE 35X in 2024 will be reduced to 27.30 yuan, maintaining the overweight rating.
Exchange losses and R & D investment are a drag on non-profits, and the performance is in line with expectations. In 2023, the company's Q1-3 realized revenue of 708 million yuan (+ 18.08%), net profit of 174 million yuan (- 22.50%), and non-net profit of 154 million yuan (+ 27.09%), of which Q3 realized revenue of 249 million yuan (+ 20.38%), net profit of 47 million yuan (- 65.17%) and non-net profit of 45 million yuan (+ 0.30%). The year-on-year decline in homing net profit was mainly due to 2022Q3's completion of the technology transfer of SDC2 products, resulting in non-operating income of about 80.39 million yuan. Deducting non-homing net profit is flat compared with the same period last year, mainly due to the increase in financial expenses caused by exchange losses, while increasing investment in research and development, the performance is in line with our forward-looking expectations.
The sequencer has been officially approved and the product reserve is rich. In September, the company's domestic high-throughput gene sequencer ADx-SEQ200 Plus was officially approved, which can meet the needs of most of the molecular detection of tumors in the hospital. In accordance with Ⅲ IVD product development standards, the company has stored a rich LDT product line and registered for approval.
A new round of equity incentives shows confidence. On September 28, the company awarded 4.421 million restricted shares at a price of 11.77 yuan per share to 402 motivators. The company-level assessment target is not less than 1.02 billion yuan in revenue in 2023, no less than 2.264 billion yuan in two years from 2023 to 2024, and no less than 3.783 billion yuan in three years from 2023 to 2025. That is, the revenue target for 2023-2025 is 10.20 pound 12.441.519 billion (year-on-year + 21% "22%" 22%). Fully demonstrate confidence in future development. Encourage and promote the construction and stability of the company's core talent team, which is conducive to the long-term development of the company.
Risk hint: the listing and promotion of new products are lower than expected; the risk of price reduction in product collection