Incident: The company released the 2023 report and the 2024 quarterly report. In 2023, it achieved revenue of 6.85 billion yuan, +6.3% year-on-year, and realized net profit of 320 million yuan to mother, -44.1% year-on-year, after deducting net profit of 310 million yuan, or -42.4% year-on-year. The first quarter of 2024 achieved revenue of 1.39 billion yuan, -10.4% year on year, net profit to mother of 20.87 million yuan, or -115.7% year on year, net profit without return to mother of 24.56 million yuan, -117.3% year on year.
Steady growth on the revenue side. The company's revenue grew steadily in 2023. In terms of profitability, in 2023, the company had a gross sales margin of 32.1% and a net sales margin of 4.5%. The company's overall expense ratio remained stable. The fee rate for the 2023 period was 26.9%, an increase of 0.3 pp over the previous year. Among them, the sales expense ratio was 10.7%, a year-on-year decrease of 1.2 pp, a year-on-year increase of 6.9%, a year-on-year increase of 0.7 pp, a year-on-year increase of 8.6%, and a year-on-year decrease of 0.2 pp.
The industrial chain layout continues to improve, and new product development results continue. The company continues to improve the industrial chain layout. The company established Chutian Technology in April 2023, and its main business is high-end centrifuges and other scientific instruments; in June 2023, the company established Chutian Jingbang, whose main business is purification engineering, EPC engineering, etc. In August 2023, the company established Chutian Paite and Chutian New Materials. Chutian Piter's main business is peptide synthesis, peptide cracking equipment and solutions, and Chutian New Materials's main business is R&D and sales of medicinal non-metallic material parts (ceramic pump equipment). In September 2023, the company established Chutian Boyuan, whose main business is continuous production of solid formulations.
The company has formed a complete pharmaceutical industry chain from design, engineering, equipment and service. At the same time, Chu Tiansi released three main equipment for automated cellular drug preparation systems — intelligent cell centrifugation systems, intelligent cell magnetic sorting systems, and intelligent cell culture plants — to provide equipment solutions for the entire process of cell drugs from R&D to production.
Profit forecast: Net profit for 2024-2026 is expected to be 200 million yuan, 230 million yuan, and 350 million yuan, respectively.
Risk warning: the risk of downstream customer demand falling short of expectations; the risk of increased industry competition; the risk of the company's new product development falling short of expectations.