Q3 Revenue grew steadily year over year, and profitability rebounded rapidly

In the first three quarters of 2023, the company achieved revenue of 283 million yuan (+6.45%), net profit of 54.69 million yuan (-16.56%), net profit of 54.69 million yuan (-16.56%), net profit of 51.89 million yuan (-14.26%); gross margin was 59.57%, +0.66 pct, net interest rate was 19.34%, and -5.33 pct. Looking at Q3 alone, the company achieved revenue of 97.33 million yuan (+10.22%), net profit of 23.77 million yuan (+55.58%), net profit of 2.07 million yuan (+50.75%), net profit of 2.07 million yuan (+50.75%); gross margin was 59.70%, +2.40 pct, +1.95 pct, net profit margin was 24.43%, +7.13 pct, and +10.62 pct month-on-month. The company's revenue in the third quarter was steady, profit elasticity increased, and profitability increased rapidly. At the same time, the company insists on independent research and development to expand the product line, and continues to strengthen channel-side construction, which is expected to open up space for future growth. We are optimistic about the company's long-term development and maintaining the original profit forecast. The estimated net profit for 2023-2025 is 0.93/1.17/145 million yuan, EPS is 0.47/0.59/0.73 yuan, and the P/E corresponding to the current stock price is 44.6/35.2/28.4 times. Given that the company's integrated “R&D, production and marketing” construction highlights its core competitiveness, it maintains a “buy” rating.

High R&D investment accelerates new product development, and the overseas layout is expected to contribute to additional volume. The company insists on independent research and development, conducts technical research on key types of scientific research reagents, and the integrated model of research, production and marketing is beginning to take shape. On the product side, the company accelerates new product development with a mature R&D process system and continues to expand its product line in the bioscience field. The product market share has gradually increased. Some products have reached the same international technical level and achieved some import substitution, gradually breaking the absolute monopoly of foreign companies. 2023H1, the company obtained a total of 6 patents, including 3 invention patents and 3 utility model patents; R&D investment reached 26.3557 million yuan, an increase of 56.86% over the previous year, accounting for 14.21% of total revenue (+4.74 pct); and 179 R&D personnel, an increase of 36.64% over the previous year, accounting for 30.29% of the total number of people in the company. On the channel side, the company used the e-commerce model to take the lead in achieving online sales. The number of newly registered users is increasing, and customer stickiness continues to increase. At the same time, the company actively promotes the construction of offline warehousing bases to ensure timely delivery, and actively lays out overseas markets through 3 overseas subsidiaries, and has a clear medium- to long-term growth path.

Risk warning: Increased market competition, loss of core members, failure in new product development, etc.