Performance: in the first three quarters of 2023, the company achieved operating income of 928 million yuan, an increase of 33.57% over the same period last year, a net profit of 128 million yuan, an increase of 69.68%, and a non-return net profit of 122 million yuan, an increase of 71.18% over the same period last year. In the 2023Q3 quarter, the company achieved an operating income of 280 million yuan, an increase of 12.59% over the same period last year, a net profit of 53 million yuan, an increase of 126.07%, and a non-return net profit of 50 million yuan, an increase of 114.88% over the same period last year.
Intelligent manufacturing: business model upgrade enabling projects, large project contracting capacity enhanced. Aiming at the pharmaceutical intelligent manufacturing business, the company promotes marketing with technology, enhances the project service capability through the "DP-EPC" new mode, realizes the full coverage of process and technical services, strengthens the company's ability to control and contract large projects, and enhances the core competitiveness. 2023H1's first intelligent detection product, "online near Infrared Spectrometer", which can realize intelligent closed-loop monitoring of real-time data transmission, marks the expansion of the company's intelligent equipment business to intelligent on-line detection and further improvement of the product system.
Rehabilitation medical treatment: vigorously expand the field of grass-roots rehabilitation, industry-university-research project to help product launch: the company selected and signed in line with the business development model of urban business department, rural business department agents, at the same time, through regular training to enhance the identity of agents to the company. By the end of 2023H1, the company's urban business and foreign trade business have grown steadily, while the rural business has expanded rapidly, expanding its coverage to 10 provinces and cities. For the earliest layout of Guangdong and Guangxi markets, the company aims to quickly cover the market and increase market share, for new areas, such as Sichuan, Chongqing, Hebei, Shandong four provinces and cities, the company based on the model project to drive the rapid promotion of the region. The company cooperates with South China University of Technology and other universities to set up an intelligent rehabilitation laboratory to carry out a number of industry-university-research projects related to rehabilitation, such as brain modeling software, transcranial magnetic navigation system and treatment system, which is expected to enrich the product matrix related to rehabilitation medicine.
Increase R & D investment and improve the product matrix: in the first three quarters of 2023, the company's R & D expenditure was 48 million yuan, an increase of 6.68% over the same period last year; the R & D expenditure rate was 5.19%, a decrease of 1.31 pct over the same period last year; the company continues to increase R & D investment and improve and upgrade the physiotherapy and exercise therapy product system. By the end of 2023H1, Longzhijie has added 7 registration certificates and filing certificates (including low temperature impact analgesia device, limb pressure sleeve, upper limb joint rehabilitation device, etc.), and 2 registration certificates and filing certificates are under application.
The rate fell steadily, and the net interest rate increased: in the first three quarters of 2023, the company's management expense rate was 7.11%, down 2.32 pct from the same period last year; sales expense rate was 9.66%, 1.52 pct lower than the same period last year; financial expense rate was 1.33%, up 0.1 pct from the same period last year; sales gross profit margin was 40.41%, down 0.28 pct from the same period last year; sales net profit rate was 13.65%, an increase of 2.51pct over the same period last year.
[investment advice]
The company implements the development strategy of "one body, two wings and two-wheel drive", the original intelligent manufacturing business has been broadened horizontally, the product matrix of emerging rehabilitation medical service has been gradually improved, and the upgrading of business model has led to the improvement of project service ability. the ability to undertake large projects has been enhanced, and at the same time, the field of grass-roots rehabilitation has been vigorously expanded. We maintain our previous profit forecast that the company's operating income in 2023, 2024, and 2025 is 1.345, 15.21, respectively, 1722 million yuan, 1.65, 219, and 0.97 million, respectively, and the corresponding PE is 26.69, 20.11 and 16.58 times, respectively, maintaining the "overweight" rating.
[risk Tip]
The risk of talent shortage
The risk of increased competition in the industry
The progress of research and development is not as good as expected.