Event: mid-2023 reported income of 225 million yuan (- 2.99%, year-on-year growth rate, the same below), net profit of 110 million yuan (+ 5.53%), deduction of non-net profit of 109 million yuan (+ 6.04%), 23Q2 income of 115 million yuan (+ 1.51%), net profit of 56 million yuan (+ 15.04%), and non-net profit of 56 million yuan (+ 15.90%).

Oral repair film accounts for the main source of income, and is expected to resume growth in the second half of the year: in the first half of the year, oral repair film products achieved sales revenue of 106 million yuan (- 3.57%), accounting for 47.24%; absorbable dura mater patch products achieved sales revenue of 91 million yuan (+ 6.13%), accounting for 40.50%.

The income from other business was 28 million yuan, accounting for 12.26%. Through the June promotion of oral repair film, the company has achieved rapid growth compared with the same period last year, and the trend is expected to be maintained in the second half of the year.

With the steady progress of collection and acquisition, the company has further expanded its marketing map: as of the first half of the year, the company's products have been netted in 31 provinces across the country (including 10 provinces of active biological bone, 6 provinces of dura mater patch and 17 provinces of surgical packing sponge). There are more than 2600 products at each provincial level, compared with the end of 2022; the growing sales network has laid a solid foundation for the steady growth of future sales.

Continuously increase R & D and innovation, and reap a lot of new products: as of the first half of the year, applications for registration of phosphate etching agents and light-cured composite resins have been accepted, and bioremediation membrane products have submitted registration materials for the first time. Its research and development on the basis of the listed oral repair film (20153170386) process will better meet the clinical needs. The clinical trial of calcium silicate bioceramic bone repair material has successfully completed the national enrollment work and made key progress. The first case of uterine cavity repair membrane was randomly divided into the group and officially entered the clinical trial.

Profit forecast and investment rating: taking into account that the recovery of the main business in the first half of the year is not as expected and is optimistic about the steady recovery in the second half of the year, we will adjust the 2023-2025 net profit from 2.36 million to 2.71 million, the current market capitalization corresponding to 2023-2025 PE is respectively times that of 29-22-18, optimistic about the company's full-year restorative growth and maintain the "buy" rating.

Risk hints: the decline of collection collection is higher than expected, and the recovery of dental implant surgery is not as expected.