Incidents:
The company released its 2023 annual report, with revenue of 544 million yuan, a year-on-year increase of 14.59%, and net profit to mother of 154 million yuan, a year-on-year decrease of 24.61%, after deducting non-net profit of 140 million yuan, a year-on-year decrease of 23.42%.
The company released its report for the first quarter of 2024, with revenue of 146 million yuan, a year-on-year increase of 6.67%, and net profit to mother of 31 million yuan, a year-on-year decrease of 31.91%, after deducting non-net profit of 0.3 billion yuan, a decrease of 32.12% year-on-year.
Excluding revenue from products related to specific acute respiratory infectious diseases, the regular business growth trend is better, and the company's regular business revenue growth is better. After deducting products related to specific acute respiratory infectious diseases in 2023, sales revenue reached 499 million yuan, an increase of 29.46% over the previous year, and an overall increase of more than 35% overseas.
Of these, the domestic, American, European, and Asia-Pacific regions were $169 million, $229 million, $72 million, and $29 million, respectively, broken down by region.
In the first quarter of 2024, after deducting products related to specific acute respiratory infectious diseases, sales revenue reached 139 million yuan, an increase of 16.00% over the previous year.
Continuous investment in R&D, increasing product types
In 2023, the company continued to invest in R&D. The company invested 125 million yuan in R&D, an increase of 9.72% over the previous year. At the same time, the number of R&D personnel in the company and subsidiaries increased to 247, an increase of 30.69% over the previous year.
In terms of products, the company continues to improve the product system and expand related products and technical services to support clinical applications such as cell and gene therapy, companion diagnosis, clinical sample analysis, and clinical medication monitoring. In the CGT field, the company has developed a series of recombinant proteins and anti-unique antibody products, targeting CD19, BCMA, Her2, etc. For CD19, which is currently the most widely used target in the field of CAR-T cell therapy, the company launched an anti-unique antibody that specifically targets the FMC63 scFv antigen recognition epitope. Furthermore, the company has launched nearly 30 high-quality GMP grade products, including cytokines, cell-activating antibodies and magnetic beads, omnipotent nucleases, and Cas enzymes, which are suitable for CGT drug CMC, commercial production and clinical research.
Profit Forecasts and Investment Ratings
Considering the impact of the decline in revenue from specific acute respiratory infectious disease-related products on the company's overall revenue growth, we lowered 2024 revenue from 863 million yuan to 626 million yuan, and net profit attributable to the parent company from 345 million yuan to 172 million yuan. We expect the company's revenue from 2025 to 2026 to be 759 million yuan, 916 million yuan, and net profit to mother of 210 million yuan and 233 million yuan. Maintaining a “buy” rating, considering that the company's regular business growth trends are good.
Risk warning: Sales volume falls short of expectations, R&D progress falls short of expectations, risk of changes in the international environment