Matters:
The company released financial reports. The company's revenue in '23 was 1,378 million yuan (+12.96%), net profit attributable to mother was 276 million yuan (+5.26%), after deducting non-net profit of 262 million yuan (+5.36%). 24Q1 The company's revenue was 663 million yuan (+99.60%), net profit attributable to mother was 122 million yuan (+56.73%), after deducting non-net profit of 119 million yuan (+55.53%).
Commentary:
Focus on R&D and innovation, and the product line continues to expand. In 2023, the company's R&D expenses were 129 million yuan, accounting for 9.33% of revenue. The company continues to promote R&D investment, drive product upgrades through technological innovation, and build an R&D platform that supports the company's strategy. In 2023, the company's CS-690 fully automatic urine biochemical analyzer, CM-640 fully automatic chemiluminescence immunoassay analyzer, BCA-4000 fully automatic coagulation analyzer, and updated products LA-60SE and LA-90 fully automatic sample processing systems were launched, and the product line continued to expand. Furthermore, on the basis of existing technology accumulation, the company has focused on increasing investment in the design of high-speed urine analyzers and high-speed chemiluminescence instruments to form a good product pipeline under development.
Domestic business was consolidated, and domestic revenue was growing steadily. In 2023, the company's domestic business revenue was 831 million yuan (+3.31%), accounting for 60.3% of revenue. In 2023, the company increased the investment of after-sales service teams in the domestic marketing system, enhanced customer service responsiveness, and promoted the installation of high-speed series products such as the CS-2000 fully automatic biochemical analyzer, fully automatic biochemical free assembly line, and the CM-640 fully automatic chemiluminescence immunoassay analyzer in the first two and top three hospitals.
Expand overseas business and grow overseas revenue rapidly. In 2023, the company's overseas business revenue was 547 million yuan (+31.61%), accounting for 39.7% of revenue. In 2023, the company launched overseas registrations for several product lines, enriching the product portfolio. At the same time, the company launched a major overseas customer strategy, optimized distribution channels, and the localization business of instruments and reagents is gradually progressing. In addition, the company has also initiated special training for international complex talents to prepare for later business development and management output. In 2023, the operation of the company's many subsidiaries achieved the expected results, with significant growth in Russia, Indonesia, India and other places.
24Q1 performance grew rapidly. In 24Q1, the company's revenue increased 99.60% year over year, and net profit to mother increased 56.73% year over year. Taking advantage of product diversification, 24Q1 focused on key markets and concentrated the company's superior resources based on the principle of balanced development of instruments and reagents, strengthened cooperation with large-scale customers, and achieved phased results. At the same time, with the management empowerment of controlling shareholders and the introduction of outstanding sales talents, the company's direct sales capabilities and academic influence in domestic and overseas markets have all been enhanced, contributing to the growth of the company's revenue scale.
Investment advice: Based on the company's 23-year performance, considering that there is some uncertainty about industry policies, we expect the company's net profit to be 4.3, 6.1, and 760 million yuan respectively (the original forecast values for 24 and 25 years were 450 million yuan and 61 million yuan), with year-on-year growth rates of +56.4%, +40.7%, and +26.1%, EPS of 1.57, 2.21, and 2.78 yuan, respectively, and 15, 11, and 9 times PE, respectively. According to DCF model estimates, the company was given an overall valuation of 9.7 billion yuan, corresponding to a target price of about 35 yuan, maintaining a “recommended” rating.
Risk warning: 1. The light-emitting business growth falls short of expectations; 2. Assembly line volume falls short of expectations.