GemPharmatech (SH:688046) Guoxin Securities·2024-04-30 08:30Investment Rating - The investment rating for the company is "Accumulate" [2][35] Core Views - The company achieved a revenue of 622 million yuan in 2023, representing a year-on-year increase of 20.5%, while the net profit attributable to shareholders was 159 million yuan, down 3.5% year-on-year. The decline in profit is attributed to ongoing business expansion, high R&D investments, and increased depreciation from new capacity coming online [1][6] - In Q1 2024, the company reported a revenue of 157 million yuan, a 12.0% increase year-on-year, with a net profit of 29.48 million yuan, down 5.1% year-on-year. The gross margin improved to 66.0%, indicating potential for further improvement as new facilities ramp up production [1][6] Summary by Sections Financial Performance - In 2023, the company generated revenue of 622 million yuan, with a net profit of 159 million yuan. The revenue growth was driven by a 40% increase in overseas market revenue and a 17.7% increase in domestic revenue [1][7] - The company expects net profits for 2024 and 2025 to be 204 million yuan and 259 million yuan, respectively, with a new forecast for 2026 at 297 million yuan [35] Business Segments - The commercialization of mouse models generated 367 million yuan in revenue, accounting for 59% of total revenue, with a gross margin of 71.6%. The functional efficacy services segment achieved 132 million yuan in revenue, up 36.1% year-on-year [21] - Custom breeding services generated 79 million yuan, with a gross margin of 60.2%, while model customization services saw a revenue increase of 49.4% to 35 million yuan [21] Market Expansion - In 2023, the domestic market revenue reached 529 million yuan, with over 2,300 domestic clients served, including nearly 600 hospitals. The overseas market revenue was 92.95 million yuan, accounting for approximately 15% of total revenue, with sales in over 20 countries [7][1]