Event: On August 23, 2022, the company released its 2022 semi-annual report. In the first half of the year, it achieved cumulative operating income of 828.0 million yuan, a year-on-year decrease of 2.2%; net profit of 179.9 million yuan, a year-on-year decrease of 43.3%; deducting non-net profit of 144.0 million yuan, a year-on-year decrease of 49.2%. Among them, Q2 Company's main revenue for a single quarter was 396.9 million yuan, a year-on-year decrease of 15.8%; net profit for a return of 68.4 million yuan, a year-on-year decrease of 63.4%; net profit of 47.4 million yuan after deducting non-net profit of 47.4 million yuan, a year-on-year decrease of 70.2%.
Comments:
Based on orthopedics, promote the development of multiple production lines for innovative consumables. In the first half of the year, the company's traumatic product revenue was 405.0 million yuan, business revenue was 48.9%, gross profit margin 84.5%; spine product revenue was 226.7 million yuan, accounting for 27.4%, gross profit margin 85.6%; minimally invasive surgery products: revenue of 95.3 million yuan, accounting for 11.5%, gross profit margin of 76.1%; joint products revenue 28.5 million yuan, accounting for 3.4%, gross profit margin of 41.6%; neurosurgical products revenue 19.5 million yuan, 2.4%, gross profit margin 85.9%; surgical instrument product revenue 9.8 One million yuan, accounting for 1.2%, gross profit margin of 43.3%; other income of 43.3 million yuan, accounting for 5.2%, gross profit margin of 66.6%. In the first half of 2022, spinal products, joint products, and minimally invasive surgical products maintained a good growth trend. Revenue increased by 23.8%, 216.3%, and 56.8%, respectively, over the same period last year.
Gathering is under pressure in the short term, and we look forward to further efforts. The company achieved cumulative operating income of 828.0 million yuan in the first half of the year, a year-on-year decrease of 2.2%; net profit of 179.9 million yuan, a year-on-year decrease of 43.3%; net profit of 144.0 million yuan after deducting non-net profit of 144.0 million yuan, a year-on-year decrease of 49.2%. The decline in revenue was mainly due to the pandemic and collection policies. Meanwhile, in the first half of the year, the company continued to increase investment in R&D, management and marketing. Expenses increased during the period, and short-term profits were under pressure. Under the premise of ensuring the quality of the company's products, the company is expected to further improve production and operation efficiency, reduce costs and increase efficiency, provide sufficient preparations to respond positively to volume procurement, and look forward to its later efforts.
R&D investment continues, and results are constantly being enriched. In the first half of the year, the company invested 102.3 million yuan in R&D, an increase of 53.5% over the previous year. It continued to increase investment in innovative product development, cultivate new product lines, and new profit growth points. The increase in R&D costs is mainly due to an increase in the number of R&D personnel and per capita salary, as well as an increase in direct investment in R&D. The company has obtained 494 patents, including 53 invention patents, 359 utility model patents, 82 design patents, 108 domestic Class III medical device registration certificates, 78 Class II medical device registration certificates, and 534 Class I medical device registration certificates. Some products have also passed the US FDA and EU CE certification.
Investment suggestions: As a leading domestic enterprise in the orthopedic field, Dabo Medical's performance declined in the first half of the year due to the epidemic and collection policies, but in the long run, industry concentration is expected to increase further, which is conducive to an increase in market share. Challenges and opportunities coexist. It is recommended to continue to pay attention.
Risk factors: Harvesting poses risk of product price reduction; risk of COVID-19; risk of industry policy changes; risk of overseas business and exchange rate changes; risk of product development; risk of intellectual property rights.