Events:
On October 27, 2022, the company released its three-quarter report of 2022, with operating income of 482 million yuan in the first three quarters, an increase of 15.00% over the same period last year, net profit of 125 million yuan, an increase of 9.85%, and non-net profit of 109 million yuan, an increase of 21.15% over the same period last year. In the third quarter, the revenue in a single quarter was 185 million yuan, an increase of 17.18 percent over the same period last year, and the net profit returned to the mother was 47.96 million yuan, an increase of 11.58 percent over the same period last year, deducting 37.04 million yuan in non-net profit, an increase of 0.40 percent over the same period last year.
Comments:
The rapid growth of revenue led to the decrease of sales expense rate, and the steady increase of R & D investment. The sales expense rate of the company in the first three quarters of 2022 was 47.97%, which was 3.20% lower than the same period last year, 47.79% for Q3, and 1.99pcts for the same period last year. The management expense rate is 4.86%, the year-on-year increase of 0.27pctsQ3 is 5.53%, the year-on-year growth rate is 0.82pcts, the financial expense rate is-1.25%, the year-on-year decrease of 0.11pctsdQ3 is-1.04%, and the year-on-year increase is 0.70pcts. In the first three quarters of 2022, the R & D expenditure rate was 8.99%, an increase of 0.19% for Q3 and a decrease of 0.17pcts over the same period last year. The sales expense rate decreased significantly in the first three quarters, mainly because the operating income grew rapidly, the management expense rate, the financial expense rate remained stable, and the proportion of R & D investment remained stable.
Invest in Implanet of France to speed up the process of internationalization
The company reached a strategic cooperation intention with the French company Implanet and signed a relevant agreement to use its own funds of 5 million euros to make direct or indirect investment in Implanet. The investment is divided into two rounds. As of October 27, 2022, the company has completed the first phase of investment payments totaling 2.5 million euros, with 28.96% of shares held by Implanet. The second phase of the investment is expected to be completed by March 31, 2023 at the latest. After the completion of the above two phases of investment, the company's shareholding is expected to be 43.19%.
Collection and landing of the spine is expected to further develop and add to the hospital.
In September 2022, the selection results of the collection of orthopedic spinal consumables were officially announced, and Group An of the company's main products won the bid. The company will rely on this collection to win the bid and treatment innovation research and development to further develop new admissions, increase the number of hospital operations, enhance the company's market coverage, and promote the company's research and development and innovation of therapy.
Sports medicine gets another certificate, enriching the layout of medical products.
Q3 in 2022, the company's sports medicine product loop titanium plate was registered and approved by the State Drug Administration (registration certificate number: national equipment injection 20223131309), enriching the layout of sports medicine products.
Profit forecast: we expect the company's operating income from 2022 to 2024 to be 874max 12.70 / 1.554 billion, respectively, and the net profit to return to its mother is 2.12x304x396 million, maintaining the "buy" rating.
Risk hint: the risk that the progress of product research and development is not as expected, the sales and promotion of products is not as expected, and the core products fail to win the bid in volume procurement.