Incident: The company announced its 2023 annual report. In 2023, it achieved operating income of 403 million yuan, an increase of 6.55% over the previous year; realized net profit of 86 million yuan, a year-on-year decrease of 7.48%. Looking at Q4 alone, the company achieved revenue of 120 million yuan in Q4 of 2023, an increase of 6.79% over the previous year, and realized net profit of 31 million yuan to mother, an increase of 16.23% over the previous year.
Expense rates have increased, and net interest rates have declined. The company's management expenses rate in 2023 was 16%, up 2.0pct year on year; sales expenses rate was 8.0%, down 0.4 pct year on year; R&D expenses were 12.7%, up 2.4 pct year on year, and financial expenses were 0.1%, up 1.0 pct year on year. The company's gross margin in 2023 was 60.2%, up 1.5pct year-on-year. The company's net profit margin in 2023 was 21.3%, down 3.1 pct year-on-year.
Various businesses are steady, and investment in R&D continues. By section, in 2023, the company achieved revenue of 210 million yuan, a year-on-year increase of 15%; life science reagents achieved revenue of 96 million yuan, a year-on-year decrease of 11%; analytical chromatography reagents achieved revenue of 52 million yuan, an increase of 6%; material science reagents achieved revenue of 32 million yuan, a year-on-year increase of 29%; and revenue of laboratory consumables was 8.27 million yuan, an increase of 15% year on year.
The company increased R&D investment in 2023. The high-purity research reagent R&D center project, the high-purity research reagent research and development center construction and supporting project, and the Zhangjiang biological reagent R&D laboratory project were partially completed and put into use, and supporting personnel and R&D projects were promoted.
Acquired Yuanye Biotech to further expand the product line. The company announced on March 18 that it plans to acquire 51% of Shanghai Yuanye Biotechnology Co., Ltd.'s shares for 181 million yuan. Yuanye biological products have a complete range of products and sufficient stocks, and have obvious advantages in biochemical reagents, standard products, small molecule inhibitors, liquid reagents and other related products. Customers include research institutes at universities and universities across the country and research customers in the fields of pharmaceuticals, food hygiene, electronics, petrochemicals, bioengineering, etc. Yuanye Biotech's R&D capabilities and advanced R&D technology and testing methods accumulated in fields such as biological reagents can complement and collaborate with Aladdin, which is conducive to enhancing Aladdin's scientific and technological innovation capabilities.
Maintain a “buy” rating. Considering that demand on the college side is relatively stable, mergers and acquisitions are expected to bring business growth. EPS is expected to be 0.60/0.78/0.97 yuan over the next three years, maintaining the “buy” rating.
Risk warning: R&D falls short of expectations, competition increases risk, risk of information systems and network security