Event: The company released its three-quarter report for 2023. The company achieved revenue of 870 million yuan, -62.3% year-on-year, net profit of 76.39 million yuan, -110.2% year-on-year, net profit of -140 million yuan, net profit of 1.4 billion yuan after deducting non-return net profit of -140 million yuan, -120% year-on-year.

The results for the first half of the year were under short-term pressure. On a quarterly basis, 2023Q1/Q2 achieved revenue of 3/27/300 million yuan, respectively, of -69%/-58.3%/-56.5% of the same period; net profit of the mother was -5062/-304/4.7 million yuan, respectively, and Q3 achieved profit in a single quarter. The gross profit margin for sales in the first three quarters was 70.9%, down 1.9pp from the previous year. In terms of expense rates, sales expense rates/management expense rates for the first three quarters. /The R&D expense ratio was 37.9%/19.9%/28.3%, respectively. The company strictly controlled expenses, and the cost rate for the third quarter fell significantly month-on-month, thus achieving profit in a single quarter. With future revenue growth, the company is expected to achieve continued profit growth.

Continue to recommend product research and development in various fields. In 2023, the company will focus on its main business, improve R&D efficiency and resource utilization, and continue to promote product research and development. In the field of life science, the company launched a chemical magnetic bead purification kit, a methylated single-chain library kit, and a double chain library kit this year, and also launched a complete automated library building solution; in the biomedical field, the company's in vitro diagnosis division has achieved a number of R&D results: 1) Respiratory product line project development and client verification work has been completed, and the mycoplasma pneumoniae test kit has been approved; 2) The company and Mindray Medical have cooperated on the overall automated solution for respiratory pathogen detection and infection screening, and related verification work has been carried out; 3) Chemiluminescence Platform Alzheimer's Disease Series The product has made a major breakthrough in raw material research, and the product has completed feasibility verification.

Profit forecast and investment recommendations: The company's 2023-2025 EPS is expected to be 0.05 yuan, 0.58 yuan, and 1.05 yuan respectively, and the corresponding valuations for 2024-2025 are 56 times and 31 times, respectively.

Risk warning: the risk that downstream customer demand does not meet expectations; the risk of increased competition in the industry; the risk that the company's new product development does not meet expectations.