Incident: The company released the 2023 report & 2024 quarterly report. In 2023, it achieved revenue of 243 million yuan (-17.4%), net profit of 54 million yuan (-48.7%), net profit of 34.72 million yuan (-60.9%), 2024Q1 revenue of 79.71 million yuan (+17.4%), net profit to mother of 19.58 million yuan (-19.15), net profit of 1.61 billion yuan (-23.4%).
A higher performance base affects the apparent growth rate. The decline in the company's revenue in 2023 is mainly due to the high revenue contribution of COVID-19 test reagent customers last year and a major customer that temporarily purchased overseas. By region, overseas revenue in 2023 was 38.71 million yuan, accounting for 15.9% of overseas revenue, or -1.5pp. The gross margin of sales in 2023 was 58.9%, -5.1pp year on year. It is expected to be mainly due to a decline in revenue and a decrease in amortization of fixed costs. In terms of cost ratio, sales expense ratio is 6.7% (+2pp), management expense ratio is 24% (+8.2pp), and R&D expense ratio is 17.7% (+6.4pp). It is expected that the cost ratio will increase mainly due to the decline in revenue. Combining the above factors, the net interest rate due to mother in 2023 was 22.2% (-13.6pp).
Media revenue increased by more than 70% year over year in the first quarter of 2024. The company's 24Q1 medium achieved revenue of 71.55 million yuan (+71%). By region, overseas revenue in Q1 was 32.81 million yuan, an increase of nearly 8 times over the previous year. Major overseas customers and domestic commercial biopharmaceuticals are expected to drive a sharp increase in media in the first quarter.
Profit forecasting and investment advice. EPS is expected to be 0.81 yuan, 1.36 yuan, and 1.66 yuan respectively in 2024-2026. The company is a leading domestic medium. The volume of core customer products is expected to drive the company's medium sales. We are optimistic about the company's long-term development.
Risk warning: the risk of products falling short of expectations, the risk of investment and financing in the innovative pharmaceutical industry falling short of expectations, and the risk of market competition.