通过LTC 流程建设，公司打通了“线索到回款”端到端流程，优化“线索到合同合同执行、客户管理”三个阶段和层面的销售相关制度共18 项，实现销售效率进一步提升。Incident: The company released its 2023 annual report and 2024 quarterly report. In 2023, the company achieved revenue of 787 million yuan, an increase of 16.5%; realized net profit of 44 million yuan, a year-on-year decrease of 8.37%; and realized net profit of 25 million yuan after deduction, an increase of 139.31% over the previous year. Among them, 2023Q4 achieved operating income of 282 million yuan, an increase of 21.18% over the previous year; achieved net profit of 26 million yuan, an increase of 16.17% over the previous year; and realized net profit of 15 million yuan after deduction, a year-on-year decrease of 23.47%. 2024Q1 achieved revenue of 115 million yuan, a year-on-year decrease of 14.77%; realized net profit of -34 million yuan, a year-on-year decrease of 2357.25%; and realized net profit after deduction of -0.39 million yuan, a year-on-year decrease of 2866.2%. The decline in net profit due to the 24Q1 net profit decline was mainly due to a year-on-year decline in revenue, and the company continued to increase investment in R&D.
The three major businesses went hand in hand, and the industrial testing instrument business increased 60% year over year. By business, the industrial testing instrument/online monitoring instrument/laboratory analytical instrument business achieved revenue of 4.62/2.48/47 billion yuan respectively, +59.75%, -15.63%, and +26.18% compared with the same period last year. The sharp year-on-year increase in revenue from industrial testing instruments is mainly due to the company's dominant product, leak detection instruments, benefiting from the high boom in the new energy sector. In addition to being deeply involved in the field of new energy, the company is also exploring semiconductor and overseas market space to accumulate energy for long-term development. Revenue from the online monitoring instrument business declined year-on-year. We judge that it was mainly due to increased market competition and a decline in demand.
The results of fee control are beginning to show, and the sales expense ratio decreased by 3.75 pct year on year. The company has been actively building an LTC (Lead to Cash) sales system since 2023 to achieve cost reduction and efficiency of the sales system. The sales/management/R&D expenses in 2023 were 19.99%, 5.67%, and 21.15%, respectively, compared with -3.75pct, +0.12pct, and +1.28pct compared to the previous year.
Through the LTC process construction, the company has opened up the “lead to payment” end-to-end process, optimized a total of 18 sales-related systems at the three stages and levels of “lead to contract execution and customer management” to further improve sales efficiency.
Continue to promote new product research and development, and make concerted efforts in various fields to accumulate long-term development. In 2023, the company's R&D expenses were 166 million yuan, yoy +24%. Years of high R&D investment helped the company achieve new product development and product field expansion. In 2023, the company successively launched various environmental monitoring instruments such as TOF2000 and CEMS1900, covering various fields such as flue gas emission monitoring and volatile organic matter monitoring; as well as various experimental analysis instruments such as IC6300, AA2300, and LCMS-TQ9200 series triple quadrupole liquid quality combination systems. In addition, the company's layout in the field of life and health has progressed. In the field of medical devices: the ultrasound scalpel project has officially begun registration of three types of medical devices; the dialysis machine project is about to begin normal development and design conversion work; the dialyzer project has achieved sample batch production, and sample delivery work will be carried out. In terms of molecular diagnosis: quantitative fluorescence PCR, digital PCR, etc. are carried out in an orderly manner.
Investment advice and valuation: According to the company's 2023 performance, we adjusted the 2024-2025 profit forecast and added the 2026 profit forecast. The company is expected to achieve sales revenue of 10.03/12.73/1,587 billion yuan in 2024-2026, respectively, an increase of 27.5%, 26.9%, and 24.7% over the previous year. Net profit attributable to mother was 0.83/1.19/141 million yuan, up 89.7%, 43.4%, and 18.2% year-on-year. Corresponding PE is 31X, 22X, and 18X, respectively. Maintain an “overweight” investment rating.
Risk warning: Risk of cyclical fluctuations in the industry, risk of unstable demand in the downstream market, risk of market competition, risk of project construction falling short of expectations.
