Events: The company released its 2023 three-quarter report. The first three quarters achieved revenue of 249 million yuan, up 65.30% from the previous year; realized net profit of 55 million yuan; realized net profit of 55 million yuan; and realized net profit deducted from non-return mother - 67 million yuan. Among them, 23Q3 achieved revenue of 92 million yuan, an increase of 120.86% over the previous year; realized net profit of 21 million yuan; and realized net profit deducted from non-return mother of net profit of 26 million yuan.
Comment:
Revenue increased significantly year on year, and new business development was smooth: in the first three quarters of 2023, the company achieved revenue of 249 million yuan, up 65.30% year on year; Q3 achieved revenue of 92 million yuan, up 120.86% year on year. The rapid year-on-year increase in 23Q3 revenue mainly includes two factors. First, the bidding process in the field of 23Q3 environmental monitoring was carried out normally. The new contract signed in the first half of 2023, the normal execution project signed in 2022, and the deferred execution inspection project signed in 2022 were all gradually implemented, inspected, and confirmed revenue; second, the company's business development in new fields such as medicine and laboratories was smooth, and revenue in new business areas increased year on year.
Q3 Optimize investment in R&D resources and continue to advance medical products: In the first three quarters, the company invested 54 million yuan in R&D, an increase of 2.80% over the previous year, accounting for 21.63% of revenue. The 23Q3 revenue growth trend is good. At the same time, the company optimizes investment in R&D resources. The share of R&D investment in revenue is lower than in the same period last year. The medical field is one of the important growth points for the company's future performance in the medium to long term, and the company continues to launch new products. At present, the products that have obtained registration certificates in the medical field include the CMI series of fully automatic microbial mass spectrometry testing systems; existing hardware products and products that are applying or are applying for registration certificates include the NucMass series fully automatic nucleic acid mass spectrometry testing system, the LC-TQ series triple quadrupole liquid quality combination instrument (used for neonatal genetic metabolic disease screening, vitamin analysis, etc.); the new products being developed include a new generation of trace element detection systems (ICP-MS series).
It won the bid for the procurement project of the Chinese Academy of Sciences and reached a number of strategic collaborations: the LC-QTOF 7000, the first domestic high-resolution quadrupole flight time liquid quality combiner independently developed by the company, successfully won the bid for the procurement project of the Northwest Plateau Institute of Biology of the Chinese Academy of Sciences. This landmark event marks that domestic high-end mass spectrometry equipment has officially entered the competitive market, filled the gap in the domestic high-end mass spectrometry field, and achieved a “zero” breakthrough. The company signed a strategic cooperation agreement with the Guangdong Institute of Intelligent Medicine to jointly promote the establishment and implementation of major national science and technology projects; reached a strategic cooperation with Huayinkang Group to form a strong synergy to promote the innovation and development of the domestic in vitro diagnostic industry and the localization and replacement of in vitro diagnostic equipment; and signed a “new circuit enterprise integrating mathematics and reality” project with Changchun New Area.
Profit forecast, valuation and rating: Due to the impact of factors such as the decline in comprehensive gross profit levels on the profit side and continued investment in R&D, which will have a certain impact on the company's short and medium term profits, we lowered the company's net profit forecast for 2023-2025 to -0.64/-0.09/53 billion yuan (the original forecast was 0.63/0.90/127 million yuan, down 202%/110%/58% respectively), considering that the company is one of the few domestic enterprises that have fully mastered the core technology of mass spectrometry, and has built technical and product barriers, we are optimistic about the company's long-term Develop and maintain the “excess holding” rating.
Risk warning: failure of new product development or marketing falling short of expectations; failure of industrialization; intellectual property risks, etc.