$Sterling Check (STER.US)$Excluded from the fall 2022 invent...

Launched in 2021, mainly for background checks and drug testing services. 84% of the market is in the US, and the current price is 13.44.

Since listing, revenue has increased continuously for two years. In 2022, it increased 19.5% to 767 million yuan, and operating profit reversed losses after listing and reached 60 million in 2022. Affected by high interest expenses, net profit reversed losses to 19 million yuan in 2022. Interest expenses in 2022 accounted for 49.2% of operating profit, and the interest burden was extremely heavy. The gross margin fell from 44.3% to 40.3% in the past two years.

In the first three quarters of 2023, revenue shrank by 7.8%, operating profit shrank by 31.6%, and net profit shrank by 88%.

Currently, the price-earnings ratio is 67.2, and the price-earnings ratio TTM loss is unattractive for the time being, considering the contraction in both revenue and profit.