Events:

2022H1, the company realized operating income of 156 million yuan, down 14.62% from the same period last year, and realized net profit of 22 million yuan, down 35.18% from the same period last year.

Main points of investment:

Under the influence of the epidemic, the performance declined in the second quarter compared with the same period last year, dragging down the performance in the first half of the year. 2022Q2, the company achieved revenue of 78 million yuan, down 23.95% from the same period last year, affecting the first half of the year. The main reasons are: in May, affected by the epidemic, all the staff could not be on duty for a period of time, and the delivery of the company was restricted to a certain extent; some raw materials could not be delivered in time due to the epidemic, which had a great impact on production; the location of customers has varying degrees of epidemic control policies, the door-to-door installation of maintenance engineers is restricted, and the progress of product acceptance is slow.

ICP-MS is recognized by customers. The inductively coupled plasma mass spectrometer LabMS 3000, a new product released by the company in May 2021, broke through the "low temperature cold flame ionization technology" and realized the application of domestic ICP-MS in the chip production line of the semiconductor industry for the first time, and obtained the trace, impurity analysis, detection and admission certification SEMIE78 and SEMI S2 in the semiconductor production line, which has been sold in semiconductor, medical and traditional fields, and the product performance has been further improved. And realized the repurchase of the head chip enterprises in the semiconductor industry.

Set up an automatic intelligent analysis and testing department to expand the business model. In 2022, the company established a new automatic intelligent analysis and testing department, which will highlight the technical characteristics of the integration of pre-processing and analytical instruments, on-line detection, mobile detection, automatic and intelligent, etc., has issued a product application manual for the element analysis of the lithium battery industry chain, and put forward an one-stop solution for some indigestible inorganic materials of lithium battery electrodes (especially carbon-containing materials such as graphite).

Profit Forecast and Investment rating We expect the company's net profit in 2022, 2023, and 2024 to be 0.78, 0.86 and 100 million respectively, corresponding to PE, which is multiple of 32-29-25, maintaining the "overweight" rating.

The risk indicates that the sales scale of the mass spectrometer is lower than expected; the landing progress of the research project is not as expected; the risk of increasingly fierce competition in the industry; the risk of product gross profit margin decline; and the risk that the progress of laboratory construction is not as expected.