Revenue grew steadily in the first three quarters, and profit elasticity was gradually released.
In the first three quarters of 2023, the company achieved revenue of 525 million yuan (+ 12.06%), net profit of 126 million yuan (+ 50.11%), net profit of 98 million yuan (+ 24.44%), gross profit of 39.25%, year-on-year + 1.80pct, net profit of 24.07% and + 6.05pct. Looking at Q3 alone, the company achieved income of 163 million yuan (+ 14.45%), net profit of 40 million yuan (+ 76.97%), net profit of 28 million yuan (+ 31.49%), gross profit of 37.87%, year-on-year + 3.31pct, month-on-month-4.76pct, net profit of 24.51%, year-on-year + 8.78pct, month-on-4.21pct. The performance of the company continues to be eye-catching, the flexibility of the profit side is gradually released, and the overall profitability remains stable. 2023H1 added 649 million yuan in contracts, an increase of 69.78% over the same period last year, providing a guarantee for rapid growth in future performance. We are optimistic about the long-term development of the company and maintain the profit forecast. It is estimated that the net profit from 2023 to 2025 will be 1.78, 2.30 and 2.95 million, respectively, and EPS will be 1.85, 2.39 and 3.07, respectively. The current stock price corresponds to 40.7, 31.5 and 24.6 times of PE, maintaining the "buy" rating.
Actively promote the equity incentive plan to protect the long-term development in August 2023, the company issued the "2023 restricted Stock incentive Plan (draft)". It is proposed to grant 2.4 million restricted shares to no more than 251senior managers, middle managers and core technical / business personnel, of which 2.016 million restricted shares will be granted for the first time. The company actively promotes the equity incentive plan, which will help to strengthen the stability of management and core technical personnel, and protect the long-term development of the company.
With the coordinated development of integrated services and special services, it is expected that incremental space companies will be able to provide customers with comprehensive clinical trial operation services from phase I to IV, and can also provide one or more special clinical trial services flexibly and efficiently according to customer needs. The clinical trial operation service covers all stages of the clinical trial project and is currently the core business of the company's development. 2023H1 achieved revenue of 181 million yuan, an increase of 7.55% over the same period last year. Among the special services, SMO and DM/ST account for a relatively large proportion of revenue at the present stage. 2023H1 achieved revenue of 0.88 million yuan respectively, an increase of 17.46% and 3.16% over the same period last year. Among them, the gross profit margin of SMO reached 29.62%, an increase of 7.44 pct over the same period last year, and profitability improved significantly. 2023H1's overseas revenue reached 23 million yuan, an increase of 158.70% over the same period last year, which is expected to contribute new increments to the company's future performance growth.
Risk tips: medical regulatory policy changes, exchange rate fluctuations, the loss of core members of the company, and so on.