What happened: the company released its three-quarter report in 2023, with revenue of 6.89 billion yuan in the first three quarters, down 9.74% from the same period last year; net profit from home was 283 million yuan, down 7.38% from the same period last year; and net profit from non-return was 187 million yuan, down 35.23% from the same period last year. Of this total, 23Q3's revenue was 2.369 billion yuan, down 17.55% from the same period last year; the net profit from home was 108 million yuan, down 25.95% from the same period last year; and the net profit from non-return was 30.259 million yuan, down 78.60% from the same period last year.

Comments:

The base of the first three quarters of 22 is relatively high, and the apparent performance is under pressure: revenue in the first three quarters of 23 decreased 9.74% compared with the same period last year, mainly due to the influence of objective factors in the same period last year. The revenue base of the third-party laboratory and other related testing services is relatively high, and the sales scale of the company's main business except the third-party laboratory testing business returned to stability in the first three quarters of 23. The non-homed net profit of 23Q3 decreased by 78.60% compared with the same period last year, and decreased by 64.20% from the previous year. In addition to the greater impact of the profit base in the same period, it is mainly due to 23Q3's increased investment in information product development and new business development, which has an impact on the current profit. In the first three quarters of 23, the company's sales expense rate increased by 0.92pp to 9.93% compared with the same period last year; the management expense rate increased by 0.57pp to 4.85% compared with the same period last year; and the financial expense rate increased by 0.38pp to 3.49% compared with the same period last year.

Speed up the self-research of IVD products, layout depression diagnosis: in the first three quarters of 23, 103 million yuan was invested in R & D, actively laying out the upstream IVD production and manufacturing fields, and differentiated layout of products in some characteristic technical fields of IVD. Self-brand products cover saccharification, quality control, clinical mass spectrometer, molecular diagnosis, POCT, digital inspection information system and other fields. Runda Rongjia, a subsidiary, announced last year that it would lay out a blockbuster track-depression diagnosis in the self-developed product pipeline, and planned to launch a clinical diagnostic assistant testing tool for quantitative screening of depression based on the principle of nicotinic acid skin response. the product is in the registration stage.

"good Doctor Xiaohui" was launched to promote accurate diagnosis and health management: on September 26, the company and Huawei Cloud launched a new generation of comprehensive solution for intelligence testing-good Doctor Xiaohui. "good Doctor Xiaohui" combines Huawei Pangu's cutting-edge technology with the company's rich experience in the field of smart medicine, and will bring a more intelligent and efficient operation mode for the medical industry and help doctors improve the efficiency of diagnosis. to provide patients with convenient and accurate health management and medical support.

Profit forecast, valuation and rating: taking into account the continued improvement in the research and development capability of the company's IVD home-made products and the new growth of the AI product empowerment company, we maintain the company's homing net profit forecast of RMB 5.04 million for 23-25, with the current price corresponding to PE for 23-25 as times as much as 19-15-13. Taking into account the company's leading position in the IVD integrated services industry, maintain the "buy" rating.

Risk hint: the product promotion is not as expected, and the market competition aggravates the risk.