event: the company issued a semi-annual report in 2023, the first half of 2023 to achieve revenue of about 0.3 billion yuan (year-on-year +0.5%), net profit attributable to the parent of 31.828 million yuan (year-on-year -80.7%), net profit deducted from non-return of 19.342 million yuan (year-on-year -81.2%). Single Q2 achieved revenue of 0.16 billion yuan (YoY -6.6%), net profit of 0.02 billion yuan (YoY -81.3%), and net profit of 0.01 billion yuan (YoY -71.2%).

short-term performance pressure, optimistic about long-term growth space:(1) from the perspective of income: excluding the impact of magnetic bead products for nucleic acid testing, 23H1 operating income increased by about 14.0 year on year, the external environment was relatively unfavorable at the beginning of 23, 23Q1/Q2 realized operating income of 0.13 billion yuan/0.16 billion yuan respectively, Q2 increased by about 23.4 month on month, among them, the revenue of chromatography packing and chromatography media products increased by 31.5 month-on-month, and the overall recovery momentum was good. (2) From the profit side: after the impact of two factors, such as the amortization of the removal of shares to pay expenses and the investment income from the acquisition of the same period in 22 years, the 23H1 net profit attributable to the parent was 93.867 million yuan (-25.5% YoY), and the net profit attributable to the non-parent was 81.381 million yuan (-29.3% YoY).

2023H1 gross profit margin was 79.1, down 2.15 from the same period last year, mainly due to changes in the product structure after the company merged the competition spectrum instrument (23H1 competition spectrum instrument revenue was 30.557 million yuan, up 15.974 million yuan from the same period last year).

focus on the main business of biomedicine and continuously accumulate the scale of application projects: 23H1 biomedicine achieved operating income of 0.27 billion yuan, up 12.09 over the same period of last year, of which the sales income of chromatographic packing and chromatography media products was 0.211 billion yuan, up 5.45 over the same period of last year, and packing products accounted for 71.5 of the total revenue. in the first half of the year, the number of customers selling chromatographic packing and chromatography media products was 397, 9 more than the same period last year. (1) According to the application field, the sales revenue of chromatography packing and chromatography medium products used in the formal production of pharmaceutical enterprises or phase III clinical projects is about 0.104 billion yuan (accounting for 49.2 of the revenue of packing and medium), up 8.1 year on year; The sales revenue of affinity and ion exchange chromatography media used in the separation and purification of macromolecular drugs was 0.141 billion yuan, up 6.7 year on year; the sales revenue of polymers and silica gel chromatographic fillers used in the separation and purification of small molecule drugs was 0.058 billion billion yuan, down 9.9 percent year-on-year.

(2) In terms of the number of projects, 2023H1 company's chromatographic packing and chromatographic media are used in about 630 projects in the fields of antibodies and vaccines, accounting for about 22% of the total number of cumulative application projects. Among them, the number of antibody, vaccine and peptide/oligonucleotide projects is the largest, with 130,142 and 188, respectively. There are 12 clinical phase III projects and 3 commercial projects.

earnings forecasts and investment recommendations. Considering the company's semi-annual performance, we cautiously lowered the company's full-year performance forecast. We expect the company's net profit from 2023 to 2025 to be 1.0/1.6/0.21 billion yuan respectively, corresponding to the current stock price PE 126/107/82 times. Considering the current low domestic production rate in the field of packing and the general trend of domestic substitution, the company can grow as a leader of domestic packing and maintain the "overweight" rating.

risk warning: the risk of increased market competition, product sales are less than expected, and the risk of policy exceeding expectations.