2022 Annual Report and 2023 Quarterly Report
In 2022, the company achieved operating income of 10.609 billion yuan, a year-on-year decrease of 0.47%; net profit attributable to shareholders of listed companies was 2,203 billion yuan, an increase of 28.12% over the previous year; net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was 2,142 billion yuan, an increase of 15.50% over the previous year. In the first quarter of 2023, the company achieved operating income of 2,437 million yuan, a year-on-year decrease of 4.39%; total profit of 731 million yuan, an increase of 7.57% over the previous year; net profit attributable to shareholders of listed companies of 597 million yuan, an increase of 9.45% over the previous year; net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was 562 million yuan, an increase of 2.78% over the previous year; basic earnings per share of 0.32 yuan, an increase of 4.94% over the previous year.
The regular business grew steadily. The gross margin of the three major business segments all increased the company's medical device business to achieve revenue of 5.879 billion yuan in 2022, a decrease of 4.71% over the previous year. After deducting the impact of emergency products in the same period last year, the conventional business in the medical device sector increased 35.64% year on year. The pharmaceutical business achieved revenue of 3.438 billion yuan, an increase of 5.52% over the previous year; among them, generic pharmaceuticals achieved revenue of 2,999 million yuan, an increase of 6.06% over the previous year; APIs achieved revenue of 449 million yuan, an increase of 2.06% over the previous year. The medical services and health management business achieved revenue of 1,293 million yuan, an increase of 4.91% over the previous year; after excluding the contribution of emergency products, the year-on-year increase was 11.73%. In terms of gross margin, the company's medical device business achieved a gross profit margin of 59.68%, an increase of 1.37 percentage points over the same period last year; the pharmaceutical business achieved a gross profit margin of 73.47%, an increase of 1.33 percentage points over the same period last year; and the medical service and health management business achieved a gross profit margin of 45.76%, up 0.66 percentage points from the same period last year. Overall, the company's regular businesses grew steadily in 2022, and gross margins of the three major business segments increased.
Innovative cardiovascular products are gradually being implemented, and consumer medical products are expected to become the new growth pole in 2022. The cardiovascular sector achieved rapid growth under the leadership of innovative implantation products. The company's revenue from cardiovascular implants into the innovative product portfolio increased 43.60% year-on-year. At present, the company's cardiovascular R&D pipeline has entered the harvest period. As of the report's disclosure date, the company's disposable pressure microcatheter, blood flow reserve score meter, biodegradable blocker, and peripheral cutting balloon were approved by NMPA. Continued listing. Among them, the vast majority of innovative products have a good competitive pattern, are unlikely to be included in large-scale collection in the short term, and products being developed are progressing steadily in the future. Currently, the company's R&D pipeline covers segmented fields such as coronary periphery implantation intervention, structural heart disease, cardiac rhythm management, and electrophysiology, with a rich product portfolio. As the company's products continue to innovate and iterate, innovative products are expected to mitigate the impact of collection and lead the company's performance to continue to grow rapidly. Furthermore, as the company's strategic emerging business, the medical consumer sector is expected to contribute to a new round of growth momentum starting in 2023 with the commercialization and promotion of products in the fields of ophthalmology and dentistry.
Take the lead in medical applications of artificial intelligence to solve clinical pain points
As a large-scale enterprise, the company pioneered artificial intelligence medical applications in the domestic pharmaceutical industry, and established the Artificial Intelligence Research Institute in 2020. The company's leading layout is expected to bring new growth and strengthen competition in the three fields of vital signs monitoring (ECG, blood pressure), blood biomarker testing (blood sugar, creatinine, urea nitrogen, etc.), and medical imaging applications related to cardiovascular implants (DSA, cardiac ultrasound). At present, the company's artificial intelligence related equipment and services have achieved cumulative revenue of 590 million yuan. AI technology breakthroughs have solved clinical pain points. The company's leading layout is expected to bring new growth and strengthen competition Advantages.
Investment advice
As an overall solution provider covering the entire life cycle of cardiovascular diseases, the company is expected to achieve long-term positive development, driven by the recovery of outpatient visits, the recovery of surgical volume, the increase in demand side brought about by population aging, and led by innovative products. We expect the company's EPS from 2023 to 2025 to be 1.34 yuan, 1.59 yuan, and 1.87 yuan; the corresponding PE will be 17.71 times, 14.99 times, and 12.72 times, maintaining the purchase rating.
Risk warning: risk of worsening competition pattern, risk of R&D progress falling short of expectations, risk of commercialization falling short of expectations