The company's 2023 revenue was 2.02 billion yuan (up 3.97% year on year), net profit from mother was 178 million yuan (up 0.47% year on year), net profit after deducting non-return to mother was 140 million yuan (down 8.92% year on year)

The company's Q4 revenue in 2023 was 573 million yuan (up 2.18% year on year), net profit to mother was 0.53 million yuan (year-on-year decrease of 18.02%), Q1 revenue in 2024 was 468 million yuan (up 6.32% year on year), and net profit to mother was 0.27 million yuan (up 21.40% year on year).

In 2023, the company's basic life science research services segment had revenue of 636 million yuan (down 0.94% year on year), medical research and technical services segment revenue of 269 million yuan (up 6.60% year on year), sequencing platform service segment revenue of 953 million yuan (up 14.05% year on year), and sold 178 sets of 6 gene kits (down 53.52% year on year).

The company's revenue in mainland China in 2023 was RMB 1,017 million (down 9.02% year on year), and revenue from Hong Kong, Macao, Taiwan and overseas was RMB 985 million (up 22.06% year over year).

The company's gross profit margin in 2023 was 42.73% (down 1.15 pct year on year), and net profit margin was 9.15% (down 0.28 pct year on year).

Profit forecasting and investment advice. We expect the company's EPS to be 0.52, 0.59, and 0.70 yuan respectively in 2024-2026, with net profit growth rates of 20.6%, 14.2%, and 19.0%. Referring to comparable company estimates and considering the company's leading position in the genetic sequencing industry, we give the company 25-30 times PE in 2024, corresponding to a reasonable value range of 12.90-15.48 yuan, and give it a “superior to the market” rating.

Risk warning: Domestic and overseas customer demand has declined, prices from core suppliers have increased, and gross margin has decreased due to increased competition.