BOJI CRO(300404) 光大证券·2024-04-29 03:02Investment Rating - The report upgrades the investment rating to "Accumulate" based on the company's strong growth prospects and improving profit margins [17][18]. Core Insights - The company has shown significant improvement in various expense ratios in Q1 2024, with sales, management, and R&D expense ratios at 6.52%, 8.74%, and 6.77% respectively, compared to 6.87%, 14.08%, and 9.67% in the same period last year [2]. - The company achieved a revenue of 5.56 billion yuan in 2023, representing a year-over-year growth of 31.19%, while the net profit was 0.24 billion yuan, down 12.04% year-over-year [8]. - In Q1 2024, the company reported a revenue of 1.67 billion yuan, a 62.08% increase year-over-year, and a net profit of 0.17 billion yuan, up 40.67% year-over-year, slightly exceeding previous expectations [8]. - The clinical research services segment generated revenue of 4.15 billion yuan in 2023, with a year-over-year growth of 49.58%, indicating robust demand in this area [16]. - The company has a total contract value of approximately 11.65 billion yuan for new business, with a notable 347% increase in contracts related to traditional Chinese medicine [16]. Financial Summary - The company's revenue growth rates for the past five years have been consistently above 28%, with a peak of 31.19% in 2023 [3]. - The net profit margin has fluctuated, with a significant increase of 187.12% in 2024E, following a decline in 2023 [3]. - The company's P/E ratio has decreased from 97 in 2022 to a projected 22 in 2026, indicating a more favorable valuation [3][17]. - The overall gross margin for 2023 was 33.3%, down 4.6 percentage points from the previous year, primarily due to increased labor costs in the preclinical and consulting services [9].