The results grew steadily in 2023, and the Q1 growth rate slowed in 2024. High expenses affected short-term profits
The company achieved operating income of 544 million yuan in 2023, a year-on-year increase of 14.6%, net profit of 154 million yuan, a year-on-year decrease of 24.6%, net profit after deducting non-return of 140 million yuan, a year-on-year decrease of 23.4%; in Q4 of 2023, the company achieved operating income of 131 million yuan, a year-on-year increase of 7.6%, net profit to mother of 0.25 million yuan, a year-on-year decrease of 49.3%; the company achieved operating income of 1.46 million yuan in Q1 2024 100 million yuan, up 6.7% year on year, net profit to mother was 0.31 million yuan, down 31.9% year on year. Net profit from non-return to mother was 0.3 billion yuan, down 32.1% year on year. The company's revenue side growth was steady in 2023. The Q1 of 2024 was affected by a slowdown in downstream demand, a slowdown in performance growth, and rapid cost-side growth affected phased pressure on the profit side. We lowered our 2024-2025 profit forecast and increased our 2026 profit forecast. The estimated net profit is 1.57/1.91/241 million yuan (originally estimated at 2.08/258 million yuan), EPS was 1.31/1.60/2.00 yuan, respectively. The P/E corresponding to the current stock price is 28.6/23.5/18.7 times, respectively. As the company is actively deploying overseas markets, we maintain a “buy” rating.
The company's regular business maintained high growth. Overseas revenue growth was impressive. The company's regular business revenue in 2023 was 500 million yuan, up 29.5% year on year; Q1 2024 regular business revenue was 138 million yuan, up 16.0% year on year. In 2023, the company further exploited the international market and established a number of new overseas subsidiaries in Europe and Japan. Currently, the sales network covers major countries and regions such as North America, Asia Pacific and Europe. In 2023, overseas regular business revenue was 330 million yuan, up 37.0% year-on-year, accounting for 66.1%.
Among them, in 2023, regular business revenue in the American region was 229 million yuan, up 29.8% year on year; regular business revenue in Europe was 72 million yuan, up 69.5% year on year.
Continue to deepen product development and horizontally expand emerging business areas
The company continues to increase investment in R&D, comprehensively strengthen laboratory and team building, and enrich product categories. In 2023, the company spent 125 million yuan on R&D, an increase of 9.72% over the previous year. In 2023, the company sold and applied more than 4,500 kinds of biological reagent products such as recombinant proteins and antibodies. The company plans to establish overseas production bases, enhance supply capacity in many countries and regions around the world, strengthen supply chain advantages, and ensure that it maintains a leading position in global market competition.
Risk warning: domestic policy changes, loss of core members, failure to develop new products, etc.