The company's revenue in 2023 was 4.444 billion yuan (up 0.05% year on year), the company's net profit to mother was 1,217 billion yuan (up 4.28% year on year), and net profit after deducting non-return to mother was 1,185 billion yuan (up 5.86% year on year).

2024Q1's revenue was 1,089 million yuan (up 5.09% year over year), and net profit attributable to mother was 324 million yuan (up 33.93% year over year). 2023Q4's revenue was 1.01 billion yuan (up 3.54% year over year), net profit attributable to mother was 317 million yuan (up 17.86% year over year), and net profit after deducting non-return to mother was 313 million yuan (up 20.61% year over year).

Among the company's main business in 2023, overseas revenue was 209 million (+60.53%), with a gross profit margin of 37.81%.

In Q1 2024, the company's sales expenses ratio was 16.60% (+0.15 pp), management expenses were 4.27% (-0.2 pp), R&D expenses were 13.88% (-0.83 pp), and financial expenses were 0.19% (+0.11pp). In Q1 2024, the company's gross sales margin was 64.51% (+3.46 pp) and net sales margin was 30.18% (+6.33 pp).

The company has a rich product line. In terms of application fields, it covers many directions from infectious diseases to non-infectious diseases, and can provide comprehensive clinical immunological testing, microbiological testing, molecular diagnostic testing and biochemical testing solutions. By the end of 2023, the company has obtained 705 product registration (filing) certificates and obtained EU CE certification for 470 products. The products cover many fields of immunological testing, microbiological testing, molecular diagnostic testing, biochemical testing, etc., and can meet the diverse testing needs of end users.

Profit forecast. We expect the company's 24-26 EPS to be 2.61, 3.18, and 3.81 yuan, respectively, and net profit growth rates of 25.8%, 21.8%, and 19.7% respectively. Referring to comparable company valuations and considering the company's high prosperity and leading position in the IVD industry, we will give the company 20-25 times PE in 2024, corresponding to a reasonable value range of 52.25-65.31 yuan, and give it a “superior to the market” rating.

Risk warning. The risk of valuation fluctuations, collection price reductions falling short of expectations, overseas development falling short of expectations, etc.