Matters:
The company released financial reports. In 24Q1, the company achieved operating income of 687 million yuan, up 0.04% year on year and 51.12% month on month; net profit to mother was 138 million yuan, up 0.06% year on year, up 181.58% month on month; after deducting non-net profit of 133 million yuan, up 6.64% year on year and 250.89% month on month.
Commentary:
Domestic business is growing steadily, and overseas business is under phased pressure. Looking at domestic business, 24Q1 achieved revenue of 499 million yuan, an increase of 11% year-on-year and an 80% month-on-month increase. The company continued to promote market segmentation and decline, enhanced the synergy of various business lines, and promoted steady growth in domestic business. Looking at overseas business, 24Q1 achieved revenue of 186 million yuan. Although overseas revenue declined year-on-year due to issues such as project business execution cycles, it achieved a 6% month-on-month increase. It is expected that with the gradual transformation of the backlog of projects, the overseas market's performance will rebound in the next year.
The life sciences sector benefits from laboratory construction opportunities, and the medical innovation sector benefits from the structural recovery of the industry.
Looking at the life science sector, 24Q1 achieved revenue of 350 million yuan, an increase of 79% over the previous month. The company focused on laboratory construction opportunities. From automated sample banks and smart laboratories to pharmaceutical process user scenarios, the solutions are becoming more and more diverse and extended to core scenario applications. Looking at the medical innovation sector, 24Q1 achieved revenue of 334 million yuan, an increase of 31% over the previous month. The company closely followed new medical infrastructure, public health recovery, and continuous blood/plasma station recovery opportunities to serve vaccine city networks such as Guizhou and Henan and automated blood station user scenarios in Tibet and Shanghai. At the same time, the automated medication solution also broke through high-end users such as Zhejiang University Shaw Hospital and Zhongshan People's Hospital.
Continue to promote R&D and support the accelerated development of new industries. In 24Q1, the company's R&D expenses were 77 million yuan, accounting for 11.25% of the company's total revenue. The company maintained high R&D investment, continued innovation and iteration, and accelerated the launch of new product solutions. In the field of life science, 24Q1 launched new product solutions such as light/mold incubators, floor-standing high-speed refrigerated centrifuges, and fully automatic cell culture workstations. Laboratory consumables such as cultivation and centrifugation continue to be abundant; in the field of medical innovation, it has launched new product solutions such as general medicine dispensing robots and small ampoule dispensing robots. 24Q1's non-storage product serialization layout continues to be improved, and mergers and acquisitions continue to expand the application of automation in life science and medical innovation scenarios. 24Q1's new industry revenue increased 22% year on year and 36% month on month, accounting for 39% of total revenue, further consolidating the new pattern of multi-category development.
Investment advice: The company's 2024 quarterly report is in line with expectations. We keep our profit forecast unchanged. We expect the company's net profit to be 5.0, 6.1, and 750 million yuan in 24-26, with year-on-year growth rates of +22.2%, +23.5%, and +21.7%, respectively, corresponding to PE 24, 19, and 16 times, respectively. According to DCF model estimates, the company was given an overall valuation of 15.3 billion yuan, corresponding to a target price of about 48 yuan, maintaining a “recommended” rating.
Risk warning: 1. The release of downstream market demand for biomedical cryogenic storage did not meet expectations; 2. Revenue from the IoT business and biosafety business did not meet expectations; 3. The progress of globalization fell short of expectations.