Incident: The company released its 2023 report. During the period, it achieved revenue of 5.34 billion yuan, +18.3% year-on-year, and realized net profit of 1.48 billion yuan, +37.7% year-on-year, after deducting non-return net profit of 1.27 billion yuan, +41.8% year-on-year.

Full year results are in line with expectations. The company's revenue for the previous quarters was 8.8/7/23.3/1.43 billion yuan (+37.5%/-58.8%/+56.2), net profit attributable to mother was 3.5/1.7/5.4/4.1 billion yuan (+50.4%/-49.9%/+70.2%/135.9%), and net profit after deducting non-return to mother was 2.8/1.2/51/360 million yuan (+27.4%/-50.5%/+71.9%/+167%), respectively. The growth rate fluctuates greatly from quarter to quarter, mainly due to differences in the pace of batch issuance and delivery of influenza vaccines. By sector, the annual vaccine sector achieved revenue of 2.4 billion yuan (+32%) and net profit to mother of 580 million yuan (+65.5%). Vaccine sales in the fourth quarter were better than in the same period last year. Excluding the vaccine business, revenue was 2.93 billion yuan (+8.9%), net profit to mother was 900 million yuan (+24%), and the performance of the blood products sector grew steadily.

Fresh pulp stations are being mined one after another, and pulping increased by about 20% year-on-year in 2023. The company's pulping volume in 2023 was 1,342 tons, an increase of 19.6% over the previous year. The company's Huangchuan County, Shangshui County, Xiayi County and Yichuan County plasma stations were completed and successfully obtained the “Single Plasma Collection License” within 2023. Dengzhou obtained the “Single Plasma Collection License” in February 2024. The above plasma stations have all begun pulp collection. The plasma stations in Xiangcheng County and Qi County are proceeding with the construction of single plasma collection stations as planned. They are expected to be completed and approved in the first half of '24? Profit forecast: The company's net profit for 2024-2026 is estimated to be 1.68 billion yuan, 1.87 billion yuan and 2.07 billion yuan, respectively.

Risk warning: Risks such as the amount of pulp collected falling short of expectations, the release of the quadrivalent influenza vaccine falling short of expectations, and insufficient progress in research and development.