NANOMICRO(SH:688690) Guotou Securities·2024-04-25 02:00Investment Rating - The investment rating for the company is "Accumulate - A" with a 12-month target price of 24.00 CNY, while the stock price on April 24, 2024, was 20.10 CNY [3][20]. Core Views - The company's performance is showing signs of recovery, with Q1 2024 revenue increasing by 16.64% year-on-year, and net profit rising by 36.66% year-on-year [3][20]. - The decline in 2023 revenue and profit was attributed to macroeconomic fluctuations, tightening investment conditions in the biopharmaceutical sector, and intensified industry competition [2][20]. - The company is expected to achieve revenue of 8.21 billion CNY, 9.77 billion CNY, and 11.64 billion CNY for the years 2024 to 2026, respectively, with net profits of 1.16 billion CNY, 1.95 billion CNY, and 2.60 billion CNY [17][20]. Summary by Sections Financial Performance - In 2023, the company reported a revenue of 587 million CNY, a decrease of 16.86% year-on-year, and a net profit of 69 million CNY, down 75.08% year-on-year [1][2]. - The Q1 2024 results showed a revenue of 154 million CNY, up 16.64% year-on-year, and a net profit of 16.89 million CNY, up 36.66% year-on-year [1][3]. Business Segments - The biopharmaceutical segment generated 545 million CNY in revenue in 2023, a decline of 7.65% year-on-year, with the core products (chromatography fillers and media) seeing a 9.52% decrease [2][20]. - The in vitro diagnostics business experienced a significant drop of 93.42% in revenue due to the near-zero sales of nucleic acid testing magnetic beads [2][20]. Customer and Market Dynamics - The number of customers for chromatography fillers and media increased to 769 in 2023, up by 158, with strategic partnerships contributing approximately 1.7 billion CNY in sales [14][20]. - The company plans to enhance its strategic customer relationships and aims to increase the proportion of sales from strategic customers to over 50% in 2024 [14][20]. Future Outlook - The company anticipates a significant improvement in profitability as the amortization of stock payment expenses decreases over time [13][20]. - The international business development is expected to grow, with plans to establish application laboratories in North America and India, targeting a 100% year-on-year growth in international business [16][20].