Incidents:
Prius recently released a report for the first quarter of 2023 and 2024: in 2023, the company achieved revenue of 760 million (+29.7%), mainly due to the gradual elimination or weakening of interference from the external business environment with the development of clinical trial projects and a significant recovery in project business progress; realized net profit of 130 million yuan (+86.1%), mainly due to improvements in project execution efficiency during the reporting period; realized net profit of 110 million yuan (+70.6%). 2024Q1 achieved revenue of 180 million yuan (+17.4%); net profit attributable to mother was 22.737 million (-10.2%), mainly due to a significant year-on-year decrease in the amount of government subsidies received during the reporting period, after deducting 19.57 million net profit (+7.7%).
The company's SMO business achieved rapid growth, and its marketing capacity increased to build 760 million (+29.7%) of SMO business revenue in 2023. Since its establishment, the company has focused on formulating, accumulating and updating internal SOPs. Up to now, it has established a set of scientific and detailed SOP system documents covering more than 270 copies to guide and regulate employees in carrying out various operations in the SMO business. On the cost side, sales expenses in 2023 increased 49.3% year-on-year compared to the same period last year, and the sales expense ratio was 1.1%, mainly due to the increase in the company's sales team personnel and salary and increased investment in related market activities to expand the business; management expenses decreased by 5.4% year-on-year, and the management expense ratio was 5.5%, mainly due to the reduction in employee remuneration and service costs; R&D expenses increased 7.8% year over year, and R&D expenses rate 4.6%, mainly due to the increase in the company's R&D investment.
The number of projects continues to increase, and service capacity is constantly being strengthened
The company participated in more than 3,100 SMO projects in 2024Q1, an increase of about 100 over the end of 2023; the number of projects implemented was 1,885, an increase of 53 over the end of 2023. By the end of the 2024Q1 reporting period, the number of employees in the company continued to increase from 4,186 at the end of 2023 to 4,407, including more than 4,200 business personnel; serving more than 930 clinical trial institutions, the clinical trial institutions can cover more than 1,300, and the scope of services covers more than 190 cities across the country.
Investment advice and profit forecasting
The company's stock in 2023 was 1,881 billion yuan (+24.97%), and the amount of new non-tax contracts signed was 1,292 billion yuan (+23.89%), with sufficient orders. The company's revenue for 2024-2026 is expected to be 904/10.85/1,324 million, with corresponding growth rates of 19.00%/20.00%/22.00%; net profit to mother is 1.59/1.93/236 million, corresponding growth rates are 18.14%/21.25%/22.14%; corresponding EPS is 2.00/2.43/2.96 yuan/share, and corresponding PE is 23.40/19.30/15.80X. Maintain a “buy” rating.
Risk warning
Industry competition increases risks, such as the risk of uncertainty about new orders, the risk of uncertainty in investment and financing in the medical industry, and changes in industry policies.