Pelvic floor rehabilitation: the leading enterprise of pelvic floor electrical stimulation equipment, Buqi Magnetic stimulation equipment Company has been focusing on the field of pelvic floor and postpartum rehabilitation since its establishment in 2013. The rapid development of the pelvic floor rehabilitation market has led to an increase in the company's revenue from 143 million yuan in 2018 to 342 million yuan in 2021, with a compound growth rate of 34% from 2019 to 2021.
In 2021, the sales amount of the company's electrical stimulation equipment is about 170 million yuan (including pelvic floor rehabilitation and postpartum recovery series). According to Sullivan 2021, the market scale of pelvic floor rehabilitation electrical stimulation equipment (ex-factory price) is about 910 million yuan, and the company's market share is about 18.68%. In April 2022, the magnetic stimulation instrument of Mattes, a subsidiary of the company, was approved to be put on the market to complement the echelon of products, and magnetic stimulation products are expected to be released quickly. In the future, driven by multiple positive factors, such as pelvic floor rehabilitation population expansion, multi-department expansion, channel sinking and self-produced magnetic stimulation, the company's pelvic floor and postpartum rehabilitation series will maintain steady growth.
Reproductive rehabilitation: 50 million infertile people have a large market space, and the lack of good products is strategically positioned to focus on women's health and beauty. reproductive health is a very important part after women enter puberty at the age of 14. The preservation of fertility is also particularly important. According to the investigation report on the current situation of infertility in China released by the China population Association, the number of infertility patients among couples of childbearing age in China has exceeded 50 million, accounting for 12.5% to 15% of the population of childbearing age, and the rate of infertility is on the rise. At the same time, the number of induced abortion in China is also very high. according to the expert consensus on promoting endometrial repair after induced abortion, the number of induced abortion in China reached 9.74 million and 9.76 million respectively in 2018 and 2019, almost the same as the current number of newborns every year. The company has developed electric ultrasound therapeutic apparatus, ultrasonic uterine involution instrument and other products, aiming at infertility, premature ovarian failure, postoperative endometrial repair and other people to help patients restore and preserve their reproductive ability. In 2021, the company's sales of electric ultrasound equipment increased from 4 in 2020 to 16, and ultrasonic uterine repair instruments increased from 14 in 2020 to 315. Both products achieved rapid volume expansion.
Omni-channel power: TO B+TO C + overseas market synchronous power
In the past, the company's business was mainly concentrated in the B-end business, especially at the level of grade hospitals dominated by medical institutions. In 2022, the company adjusts its marketing structure to tilt towards grass-roots health care institutions. Compared with hospitals, there are more primary health care machines and more market space to sink. Non-medical institutions outside the hospital, the company covers more month and child centers, mother and child centers, beauty institutions and so on through dealers. TO C-end, the company's household pelvic floor biological stimulation feedback instrument, sold online through JD.com and Taobao platforms, three prices adapt to different payment capacity groups, C-end customer base is large, 60-70 is the last wave of population fertility peak, online sales can also increase patients' sense of privacy in pelvic floor rehabilitation. In overseas markets, the company began to set up overseas teams in 2019, and some products were certified by CE in 2020. Overseas markets are expected to be an important growth point for the company in the future. Overall, the company's omni-channel efforts, TO B+TO C + overseas markets, to help the company continue to create a new growth curve.
Investment suggestion
It is estimated that the company's revenue from 2022 to 2024 is expected to reach 411 million yuan, 502 million yuan and 622 million yuan respectively, with year-on-year growth rates of 20.3%, 22.1% and 24.0%, respectively. The company's magnetic stimulation products have changed from agent to self-produced, and the gross profit margin of the magnetic stimulation instrument has increased from about 30% to 80%. It is expected that the gross profit margin of the company as a whole will also increase gradually. The company's sales gross profit in 2022-2024 is expected to be 73.5%, 73.9% and 74.1% respectively. The net profit of homing in 2022-2024 is 142 million yuan, 187 million yuan and 227 million yuan, respectively. The year-on-year growth rate reached 20.1%, 31.3% and 21.8%, respectively. In view of the friendly policy environment of the industry where the company is located, the company focuses on women's health, provides a complete range of rehabilitation solutions and products, and the product portfolio has strong synergy. The IPO raised a total of 1.007 billion yuan to help the company's long-term development, coverage for the first time, and give a buy rating.
Risk hint
The risk of research and development and promotion of magnetic stimulation equipment is not as expected.
Market competition aggravates risks.