Unconventional business is declining. The company released 23Q3 quarterly report that the company realized operating income of 516 million yuan (YOY-22.18%), gross profit margin of 60.77% (YOY+22.94pct), net profit of 65 million yuan (YOY+5.38%) and non-return net profit of 42 million yuan (YOY-0.31%), resulting in a decline in unconventional business.
We will focus on development in the three major areas. According to the company's half-yearly report in 2023, the company has completed a number of product research and development and listing work in the fields of chemiluminescence, immunochromatography and electrochemistry. The details are as follows: (1) the company has established a complete research, production and marketing system of tubular luminescence and single luminescence technology platform, which is further integrated and optimized at the raw material, process and production level. (2) while carrying out the systematic technical upgrading of instruments and reagents, the immunofluorescence platform, taking into account the improvement and addition of the old platform, has completed the relevant verification tests in the domestic head third-class hospitals. (3) in 23 years, the company's new wet blood gas electrochemical analyzer and its reagents were approved to further enhance the competitiveness of blood gas products.
Two major strategic breakthroughs. According to the company's 2023 semi-annual report, in the field of chemiluminescence, in the business line of tubular chemiluminescence, the company promotes the rapid development of tubular chemiluminescence business through conventional projects and characteristic projects "walking on two legs". In the field of molecular diagnosis, the fully automatic nucleic acid amplification and analysis system developed by the company actively helps in the fields of disease control and customs quarantine, and focuses on expanding the overseas infectious disease detection market. In the field of pathological business, the company formulates a long-term strategy to develop hypersensitive antibodies and full-process supporting reagents, and to enhance the ability to differentiate and compete with peer products through scientific research cooperation with third-class hospitals of the head.
Profit forecast and investment advice. We estimate that the company's EPS for 23-25 years will be 1.27,1.62,2.05 yuan per share respectively. With reference to comparable companies, we will give the company a 23-year 25-fold PE valuation and maintain a "buy" rating corresponding to a reasonable value of 31.64 yuan per share.
Risk hint. Research and development is not as expected; policy risk; sales of new products are not as expected.