Event: the company released 2024Q1 results: achieve operating income 0Pennbattle38000hs. 2.7 billion yuanPennbattle38000hs, year-on-year-43.3%; return-to-mother net profit of 2.9 million yuan,-81.2%; deduction of non-return-to-mother net profit of 1.6 million yuan,-87.6% year-on-year. 24Q1 industry demand is under pressure, superimposed high base impact, revenue declined compared with the same period last year, due to the rigidity of personnel compensation, depreciation and amortization and other expenses during the period, the decline in performance is greater than income, 24Q1 performance is in line with our expectations. Investment points: 24Q1 comprehensive gross profit margin of 62.4%, a year-on-year decline of 7.6pcts, related to the change of product structure. The product category of the company is rich, and the gross profit margin of each major category is different due to different processes and technologies. Further divided into application fields, the gross profit margin of the scientific research type is high, while the production type is relatively low. Take the freeze dryer as an example, the gross profit margin of the non-production type is about 63%, and the production type is in the range of 30% to 45%. Due to the concentrated release of purchasing demand from university scientific research institutions, 23Q1's gross profit margin is significantly higher than that in other quarters. Continuously enrich the product matrix, adapt to the needs of multiple scenarios, and reduce dependence on a single industry. From the beginning, the company focuses on product development in the field of biological sample treatment (pretreatment, preparation, separation, purification, etc.). Downstream applications cover biomedicine, synthetic biology and industries that require high precision and high sensitivity for sample treatment. Up to now, the company has more than 100 products such as ultrasonic crushing and extraction, freeze drying, constant temperature water bath, ultrasonic cleaning, homogenate grinding dispersion, molecular biology and so on, which have formed perfect product solutions in the fields of synthetic biology, small molecular drugs, new materials & new energy, IVD, CDC and food science, and the anti-cyclical ability has been enhanced. Set up a team of application engineers to empower the national sales network and assist the development of key customers. The company's small value of instruments and equipment, many categories, extensive coverage and strong control of the sales network is the key to success. With the category expansion and technology upgrading, the importance of terminal application support has become increasingly prominent. In 23 years, the company set up an application service team led by Dr. Shuo to provide favorable support for the rapid promotion of new products, efficient demand response and customer maintenance. Take self-research as the basis, make use of mergers and acquisitions to accelerate the layout of the industrial market. The company announced the acquisition of 55% stake in Ningbo Avers Company in March 24, which is the first extension merger and acquisition since the establishment of the company. Avers products are mainly high and low temperature industrial temperature control, which can be used in pharmaceutical, new energy, chemical and other fields, complementary with the company's original laboratory products. Based on the core technology to acquire industrial products, one is to help quickly cut into the industrial market and form a new profit growth point; the other is to shorten the incubation cycle of the product line (laboratory-production) and enhance the competitiveness of Xinzhi brand. Maintain a "buy" rating. The company focuses on the life science instrument market, the product matrix continues to broaden, anti-cyclical has been enhanced, 23 years through mergers and acquisitions to accelerate the layout of the industrial market, income elasticity increases, we maintain the previous profit forecast, the company is expected to return to the home net profit for 24-26 years is 0.57 shock 0.65 prime 0.75 million yuan, the current stock price (2024-04-26) corresponding to PE respectively is 16-14-12 times, maintaining the "buy" rating. Risk tips: increased competition in the industry; lower-than-expected downstream demand, lower-than-expected progress of new product research and development, etc. [disclaimer] this article only represents the views of third parties and does not represent the position of Hexun. Investors operate accordingly, at their own risk.
[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.