Event: the company released its three-quarter report for 2023, with an operating income of 280 million yuan, an increase of 6.5% over the same period last year, a net profit of 55 million yuan for shareholders belonging to the parent company, a decrease of 16.6% over the same period last year, and a net profit of 52 million yuan after deduction, a decrease of 14.3% over the same period last year.

It is obvious to reduce cost and increase efficiency, and the growth rate at the profit end has achieved relatively rapid growth. From a quarterly point of view, the company's 2023Q1/Q2/Q3 single-quarter operating income is 0.9qqpx100 million yuan (- 5.9% Uniqpx 16% Universe 10%), and the net profit realized by its mother is 0.17max 0.14max 0.24 million yuan (- 44.4% Universe 29% Universe 56%). The rapid year-on-year growth of the company's profits in the third quarter is mainly due to the company's control of related expenses under the low base last year. From the perspective of profitability, the company's 2023 Q1-3 gross profit margin is 59.6% (+ 0.66pp), the sales expense rate is 8.3% (- 0.5pp), and the management expense rate is 17% (+ 3.8pp). This is mainly due to the rapid growth of managers and R & D personnel and the rapid increase of personnel salary expenditure. The net interest rate is 19.3% (- 5.3pp) and the R & D expense rate is 13.9% (+ 3.7pp), which is mainly due to the company's increased investment in R & D.

Self-research category gradually improved, looking forward to the recovery of demand after the rapid growth. The growth rate of the company's operating income slowed down in the Q3 quarter compared with the previous quarter. The sales revenue in January of this year was less, and the base figure was higher from June to August last year, resulting in a slowdown in the growth rate of Q3 income this year. In addition, the revenue of specific products such as streptavidin and guanidine isothiocyanate accounted for a relatively high proportion in the previous year, which also affected the growth rate of operating income this year. The follow-up company is expected to continue to invest in the research and development of the life science sector, looking forward to the future, the company is expected to achieve rapid performance growth under the continuous introduction of new varieties and the gradual accumulation of brand advantages.

Profit forecast and investment advice. It is estimated that the EPS from 2023 to 2025 will be 0.62,0.88 and 1.22 yuan respectively. In the long run, as a leading enterprise in domestic scientific research reagents, the company continues to expand its product categories and SKU, and its brand power continues to realize its achievements. There is a large import substitution space in the domestic market, and the foreign market is in urgent need of development. Maintain a "buy" rating.

Risk hint: new product research and development is lower than expected risk, product price reduction risk.