Tofflon(SZ:300171) Southwest Securities·2024-05-15 02:00Investment Rating - The investment rating for the company is not explicitly stated in the report, but it implies a neutral stance based on the performance expectations for the next six months [6][23]. Core Viewpoints - The company achieved steady revenue growth in 2023, with total revenue reaching 5.64 billion yuan, an increase of 3.2% year-on-year. However, net profit decreased by 29.1% to 600 million yuan [14][15]. - In Q1 2024, the company reported a revenue of 1.11 billion yuan, down 22.1% year-on-year, with net profit declining by 72% [14][7]. - The company is focusing on expanding its business and international market presence, leveraging its strong R&D capabilities and comprehensive sales network [8]. Summary by Sections Financial Performance - In 2023, the company's revenue from the formulation division was 3.07 billion yuan (+15.31%), while the bioprocess division saw a revenue drop to 1.33 billion yuan (-21.64%). The engineering division's revenue was 590 million yuan (-0.08%), and the food division generated 330 million yuan (+0.33%) [7]. - The company's gross margin for 2023 was 35.33%, a decrease of 3.72 percentage points year-on-year [7]. - Management, sales, and R&D expenses for 2023 were 340 million yuan, 550 million yuan, and 380 million yuan, respectively, reflecting year-on-year increases of 30.2%, 17.43%, and 14.03% [7]. Future Projections - For 2024, the company is projected to generate revenues of 4.89 billion yuan, a decrease of 13.34% compared to 2023. The net profit is expected to drop to 321.48 million yuan, a decline of 46.44% [10][15]. - The company anticipates a gradual recovery in revenue growth, with projections of 3.10% and 6.87% growth in 2025 and 2026, respectively [10]. Strategic Initiatives - The company is implementing the "M+E+C (AI)" strategy, focusing on the integration of drug manufacturing science and pharmaceutical machinery science, while continuing to push for internationalization [8]. - The company faces challenges in scaling and developing core technologies compared to leading foreign enterprises [8].