Event: the company released its third-quarter results report in 2023, with revenue of 2.004 billion yuan (- 57.32%), net profit of 400 million yuan (- 67.75%), non-net profit of 337 million yuan (- 71.38%) and operating cash of-36 million yuan (- 103.37%). In 2023, Q3 realized revenue of 516 million yuan (- 22.18%), net profit of 65 million yuan (+ 5.38%), and non-net profit of 42 million yuan (- 0.31%).
Profitability has gradually rebounded, and the overseas layout has continued to improve. Affected by the sales of emergency products in the same period last year, the company's apparent revenue still declined, but the gross profit margin and net profit margin increased significantly. In 2023, Q3 company gross profit margin was 60.77% (+ 22.94pct), net profit rate 12.58% (+ 3.60pct), mainly due to revenue restructuring and the increase in the proportion of high gross margin regular business. In addition, the company continues to promote the localization of overseas key countries, strengthen the marketing of new fluorescent testing reagents, and move up to cover terminals through new product introduction and instrument upgrading; the company has completed a number of key national registration work, and accelerate the development of new chemiluminescence channels / terminals based on the existing overseas distribution system. At present, the company has successfully landed at the training center of Nairobi University in Kenya and signed a strategic cooperation agreement with Indonesian state-owned pharmaceutical company Kimia Farma (KAFF). In the field of drug testing, the company accelerates the localization of products and services and gradually covers the global market.
Adhere to the expansion of production lines and the development of new platforms, and be optimistic about innovation-driven long-term growth. The company continued to increase its investment in R & D capacity building and new product development. The company spent 259 million on R & D in the first three quarters, with a R & D expenditure rate of 12.95% (+ 6.36pct). It completed a number of new product development and product improvement, completed research and development and listing of several key categories in the three major fields of chemiluminescence, immunochromatography and electrochemistry, and continued to promote the rapid development of tubular luminescence routine and characteristic projects. And vigorously promote the layout of single-person luminous stripes at home and abroad. In addition, the company takes the joint inspection products of infectious diseases as a breakthrough to expand the overseas molecular diagnosis market of infectious diseases, and to enhance the differential competitiveness of pathology business through scientific research cooperation with the head third-class hospitals.
Investment suggestion: the company is the leader of POCT diagnosis in China, and has significant advantages in technical platform and product pipelines. With the gradual recovery of conventional business, the joint efforts of domestic and international markets, the steady progress of multi-field strategic layout, and good long-term prospects in the future. Taking into account the changes in industry policy, we downgrade the company's 2023-2025 net profit forecast to 5.03 PE 6.26 trillion yuan, compared with the same period last year. The year-on-year-58.01% bonus 24.55% bonus 25.70% bonus EPS is 1.13 PE 1.41 yuan respectively, and the current stock price is 2023-2025 times higher than 22-18-14, maintaining the "recommended" rating.
Risk hints: the risk of policy uncertainty, the risk that the promotion of new products is less than expected, and the risk of product price reduction exceeding expectations.