Exempted non-net profit grew rapidly, and operating results were evident in improving quality and efficiency

The company released its 2023 performance report: in 2023, it achieved revenue of 2.112 billion yuan (+10.82%); net profit to mother of 391 million (+18.58%); deducted non-net profit of 353 million yuan (+58.60%). The main reasons why the company achieved rapid growth after deducting non-net profit are: 1. The company continues to promote marketing innovation, seize market opportunities, increase sales efforts, and achieve steady growth in the company's performance; 2. The company actively carries out lean management, energy saving and consumption reduction projects to improve management efficiency and effectively control costs; 3. The amortization of management expenses confirmed by the company's first phase of the employee stock ownership plan decreased in the current period compared to the same period last year; 4. The biopharmaceutical sector was sorted out and optimized to achieve a certain degree of loss reduction.

By quarter, the company's Q1/Q2/Q3/Q4 revenue was 716 million yuan (+38.51%), 478 million yuan (-0.07%), 438 million yuan (-1.33%), and 540 million yuan (+3.65%); net profit to mother was 169 million yuan (+40.96%), 210 million yuan (+15.01%), 17 billion yuan (-19.16%), and -0.06 billion yuan (-219.45%), respectively; net profit after deducting non-return to mother was 164 million yuan (+42.86%), respectively , $203 million (+15.48%), $10 billion (-34.45%), and -024 million yuan (+71.53%). The company's inventory is expected to gradually return to normal levels, and the company's operations are expected to escape disruptive factors such as the epidemic and achieve steady development in 2024.

The chairman plans to increase his shareholding in the company, demonstrating confidence in development

According to the company's announcement, the actual controller, chairman and president, Mr. Zou Xun, plans to use his own capital based on confidence in the company's future development prospects and recognition of long-term investment value. The proposed increase in holdings is not less than 5 million yuan.

Profit forecasting and investment ratings

The company's revenue for 2023-2025 is estimated to be 21.72/24.09/2,672 billion yuan, and net profit to mother will be 3.91/5.02/562 billion yuan, respectively. The current stock price corresponding to PE is 21.36/16.65/14.87 times, respectively. Considering that the company's first-tier varieties will open up the in-hospital market in the future, second-tier and third-tier varieties are growing rapidly, and there is plenty of room for improvement, the biopharmaceutical sector is expected to further reduce losses and maintain a “buy” rating.

Risk warning:

Risk of channel promotion falling short of expectations; risk of drug development failure.