Core views:
The performance was in line with expectations. Recently, the company issued a 22-year performance announcement. The company's revenue during the reporting period was 1,097.3 million yuan, an increase of 13.96% over the same period in 2021. The increase in earnings was mainly due to increased earnings on lamellar stents and congenital heart disease blockers. Among them, overseas revenue increased 33.7% year-on-year in '22. Net profit was 325 million yuan in '22, an increase of 11.24% over the previous year. The gross margin was 79.6%, down 1.15 pp from the previous year.
The core product line is growing steadily. During the reporting period, the structural heart disease business contributed about RMB 394.6 million (YOY +19.2%), the peripheral vascular disease business contributed about RMB 644.3 million (YOY +17.5%), and the electrophysiology business contributed about RMB 58.4 million (YOY +27.8%).
Research and development continues to advance. The company's research and development of various products continues to advance, and R&D expenses increased by 3.18 pp over the same period last year. The ABSNOW absorbable atrial septal defect occlusion system and AcuMark measurement balloon are being registered and approved in China; the aortic arch stent system (including the Ankura Plus main aortic arch stent system and the cSkirt aortic arch branch stent system) has been approved as an innovative medical device in China; the Lambre Plus left ventricular ear blockage system initiated by researchers has been covered by US medical insurance, and all enrolled patients will receive full medical insurance coverage; the aortic arch stent system (including AnkuraPlus Master) Arterial arch main stent system and cSKirt aortic arch branch stent system) and Futhrough aortic ventricular stent rupture system have completed pre-marketing clinical enrollment in China.
Profit forecasts and investment recommendations. The company achieved EPS of 0.1, 0.13, and 0.16 yuan/share in 23-25, respectively. Considering the company's competitive pattern and position, the company was given a “buy” rating of 23 PE 35X, corresponding to a reasonable value of HK$4.05 per share.
Risk warning. Policy risks, new product sales falling short of expectations, and R&D falling short of expectations.