Regular business revenue increased 29.5% year over year, putting pressure on the profit side in the short term. In 2023, the company achieved revenue of 544 million yuan (+14.6% YoY). After deducting products related to specific acute respiratory infectious diseases, the regular business achieved sales revenue of 499 million yuan (YoY +29.5%), including overseas conventional business revenue of 330 million yuan (+37.1% YoY), domestic routine business revenue of 169 million yuan (YoY +16.8%); net profit attributable to mother of 154 million yuan (YoY -24.6%), net profit of 140 million yuan (YoY -23.4%).
On a quarterly basis, 2024Q1/2023Q4 respectively achieved revenue of 131/146 million yuan, +7.6%/+6.7%, respectively; net profit to mother of 0.25/31 billion yuan, respectively, and -31.9%, respectively. The estimated profit side pressure was mainly due to the high revenue share of COVID-related products with high profit margins in the same period last year, the corresponding increase in cost investment after the company's team size was expanded, and the impact of exchange gains and losses due to foreign exchange fluctuations, and preparation for bad debts due to accounts receivable and inventory price reduction preparations.
By product line, the company's core recombinant protein varieties achieved sales revenue of 457 million yuan (YoY +15.9%), gross profit margin of 94.7% (YoY -0.4pp); antibodies, kits and other reagent products achieved sales revenue of 61 million yuan (+5.2% YoY), and a gross profit margin of 91.3% (YoY +2.9 pp).
The GMP production site in Suzhou is about to be put into operation. Based on the GMP quality management system platform and combined with cell therapy drug production standards, the company has successfully developed nearly 30 high-quality GMP grade products, including cytokines, cell-activated antibodies and magnetic beads, omnipotent nuclease and Cas enzymes, etc., which are suitable for large-scale production and clinical research of CGT drugs. The company is currently actively building a GMP grade production plant in Suzhou. It is expected that the production base will be put into operation in the second half of 2024. At that time, the company's development and production capacity for GMP grade biological reagents will be further enhanced.
Investment suggestions: Bepsis is the world's leading provider of recombinant protein reagents. It is deeply involved in industrial customers and has high product quality barriers; accelerates global layout and high overseas revenue growth; and expands the range of GMP-level products around cell gene therapy R&D and production scenarios. According to the company's 2023 annual report and 2024 quarterly report, we have adjusted our profit forecast. We expect the company's net profit for 2024-2025 to be 1.90/246 million yuan (the previous value was 235/301 million yuan), and the net profit forecast value for 2026 was 327 million yuan. Currently, the PE corresponding to the stock price is 23/18/14x, respectively, maintaining the “increase” rating.
Risk warning: the risk of new product development falling short of expectations, the risk of fierce market competition, etc.