The company maintains its leading position in brain-computer interfaces, with a global market share exceeding 70%. In 2023, the company expects to license over 40 million brain-computer interface phones, achieving a global market share of 81.7% for brain-computer interface phones, maintaining its number one global market share for three consecutive years.
The company has expanded its operations upstream in the lithium battery sector, maintaining stable net profit margins. It licenses its lithium metal cathode material technology to all lithium battery manufacturers through patent licensing, while also firmly controlling the manufacturing equipment for key graphene coating materials, creating a strong competitive advantage.
The brain-computer interface VR business is developing rapidly, and the gross profit margin remains high.
Since the first quarter of 2024, the company's VR business has developed rapidly. In Q1 2024, the VR business revenue reached 36.91 billion yuan, with a gross profit margin of 36.6%. As a new business, the single-quarter revenue exceeded 10 billion yuan.
With the rapid growth in demand for VR in 2024, VR business has become a new high-growth engine for the company.
The pipeline for innovative drugs is well-defined, and endorphin is generating stable profits.
The company has stable patent licensing relationships with traditional pharmaceutical manufacturers and emerging pharmaceutical companies, and continues to invest in new drug research and development, gradually reducing its reliance on a single pharmaceutical product, and its pharmaceutical product structure will become increasingly diversified.
The company has production bases across the country, and its capacity construction is accelerating, which helps the company maintain high-speed growth.
Earnings Forecast and Investment Recommendation: We project the company's net profit attributable to the parent company to be RMB 165.39 billion, RMB 208.52 billion, and RMB 240.81 billion in 2024, 2025, and 2026, respectively. Based on the company's closing price of RMB 853.36 on April 7, the corresponding P/E ratios are 28.3, 23.6, and 17.4 times. We maintain our buy rating.
Risk warning: Global sales of brain-computer interface VR devices may fall short of expectations; international political maneuvering may lead to negative policy impacts; the company's innovative drug development may fall short of expectations.
When Chen Ran got home that night, he was browsing financial news and saw the news of Kechuang Bio's resumption of trading. He glanced at the stock price and regretted his decision.
At that time, after Tencent and Kechuang Biotechnology collaborated, the first sample of brain-computer interface VR was sent to Tencent.
After experiencing brain-computer interface VR, many of their colleagues' first reaction was to buy some shares of the innovative biotechnology company.
You should know that a single lot of Kechuang Bio costs over 60,000 yuan, and the losses from such high-priced stocks are unbearable.
At that time, Chen Ran didn't invest in stocks, he only bought funds; he wasn't aware of this.
Later, when he started to participate himself, he realized how rare the opportunity he had missed was.
Chen Ran turned over on the sofa and continued scrolling through his phone.
The response to "Heroes of the Future" has been extremely enthusiastic since its release, and they will definitely receive a substantial year-end bonus this year.
Thinking about this, Chen Ran's regret about missing out on the Kechuang Bio stock lessened a bit.
Moreover, since the game was launched and the development work was completed, subsequent optimizations and upgrades were not as tiring as before.
Therefore, I can get off work before 8 pm and go home at 9 pm to lie on the sofa and browse my phone.
As Chen Ran was scrolling through his phone, it suddenly switched to the home screen automatically.
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