Incident: The company announced its 2023 annual report. In 2023, it achieved operating income of 4.444 billion yuan, an increase of 0.05% year on year; realized net profit to mother of 1,217 billion yuan, an increase of 4.28% year on year. At the same time, the company announced its 2024 quarterly report. 2024Q1 achieved operating income of 1,089 million yuan, an increase of 5.09% over the previous year, and realized net profit of 324 million yuan to mother, an increase of 33.93% over the previous year.
The gross margin increased significantly, and the net profit margin was stable. The company's management expenses rate in 2023 was 4.1%, up 0.4 pct year on year; sales expenses rate was 17.2%, up 1.0 pct year on year; R&D expenses rate was 14.8%, up 2.0 pct year on year, financial expenses were 0.2%, up 0.2 pct year on year. The company's gross margin in 2023 was 65.1%, up 5.2 pcts year over year. The company's net interest rate in 2023 was 27.5%, up 0.8 pct year-on-year.
Excluding the impact of COVID-19, growth is faster, and biochemical, immunological, and microbiological product lines are growing steadily. Excluding the impact on revenue related to COVID-19 testing, the company's revenue in 2023 increased by about 16.64% compared to the same period last year. By product, the company's immunodiagnostic products achieved revenue of 2,483 million yuan, a year-on-year increase of 23.77%; microbiological testing products achieved revenue of 323 million yuan, an increase of 18.65%; biochemical testing products achieved revenue of 250 million yuan, an increase of 20.54%; molecular testing products achieved revenue of 17.38 million yuan, a year-on-year decrease of 79%; and testing instrument products achieved revenue of 302 million yuan, a year-on-year decrease of 30.47%.
The company has successively launched a variety of automated testing equipment to help the development of automation, IoT and intelligence in medical laboratories. In 2023, the company's fully automatic biochemical analyzer AutoChem B801 series obtained a medical device registration certificate, further enriching the company's testing product line; the fully automated microbial mass spectrometry testing system Autof MS series obtained the first EU IVDR microbial mass spectrometry testing system product registration certificate in China; and the Sikun 2000 series of gene sequencers launched by the company's wholly-owned subsidiary Sikun Biotech was launched in the non-clinical field.
Maintain a “buy” rating. Based on the gradual restoration of domestic hospital testing services and the further enrichment of the company's product line, EPS is estimated to be 2.62/3.22/3.88 yuan in the next three years, maintaining a “buy” rating.
Risk warning: Industry policy risk, increased risk of industry competition, risk of R&D falling short of expectations