The company announced that during the reporting period, the company achieved operating income of 480 million yuan (yoy+15%) and net profit of 120 million yuan (yoy+10%), deducting non-return net profit of 110 million yuan (yoy+21%), of which Q3 realized operating income of 180 million yuan (year-on-year + 17%), net profit of 47.96 million yuan (yoy+12%) and non-return net profit of 37.04 million yuan (yoy+0.4%).
The company grows steadily and continues to invest in research and development. During the reporting period, the company overcame the influence of repeated epidemic and other factors to achieve stable growth. At the same time, the company continues to invest in corporate governance and R & D, firmly promoting therapeutic innovation with the mode of medical-industrial cooperation.
Expense rate: during the reporting period, the company's sales expense rate, management expense rate and R & D expense rate were 48.0%, 4.9% and 9.0%, respectively, compared with the same period last year-3.2pct, + 0.3pct, + 0.2pct.
Profitability: the company's gross profit margin in the first three quarters was 26.7%, year-on-year-0.4pct, and net profit rate was 26.7%, year-on-year-0.4pct.
Domestic: the collection situation is better than expected, and the withdrawal of foreign enterprises provides incremental space. On September 27, 2022, the results of the national spine collection were announced, and the company's main products won the bid in Group A. With the strategy of winning the bid and therapy innovation, the company is expected to further develop new hospital admissions, increase the number of hospital operations, enhance the company's market coverage, and drive the sales of km therapy innovative products in relevant hospitals, which will have a positive impact on the company's long-term development. In this collection, due to the withdrawal of Stryker and the partial loss of the bid of Medtronic PLC, it provides a certain incremental space for domestic enterprises and accelerates the progress of domestic substitution.
Overseas: invest in Implanet to realize the double empowerment of technology and overseas channels. The company intends to use its own funds of 5 million euros to directly or indirectly invest in Implanet and enter into a strategic partnership. As of the date of disclosure in three quarters, the company holds 28.96% of Implanet shares, making it the largest single shareholder of Implanet. After the completion of the investment, the company's shareholding ratio is expected to be 43.19%. Implanet, as a French company specializing in degenerative orthopedics, its Jazz PF braided ribbon (Braided) technology is highly consistent with the company's innovative concept of therapy, and the company's products can also become an effective supplement to Implanet.
In addition, Implanet's overseas channels can effectively accelerate the company's overseas market promotion progress.
New products: during the reporting period, the company made important progress in the research and development of sports medicine products, and the titanium plate with loops was successfully approved.
Maintain the "highly recommended" investment rating. The company insists on promoting therapy innovation in orthopaedics with excellent independent research and development capabilities, collection helps to accelerate the share of domestic products, overseas investment in Implanet not only attracts high and new technology, but also accelerates the layout of overseas markets. From 2022 to 2024, we expect the company to achieve a homing net profit of 217, 267, 340 million yuan, EPS of 0.96, 1.18, 1.50 yuan, and PE of 36, 29, 23X, respectively, maintaining the "highly recommended" investment rating.
Risk tips: price reduction risk, new product research and development related risk, epidemic related risk and so on.