Angus issued the results announcement of the 2023 semi-annual report: in 2023, H1, the company realized operating income of 205.5589 million yuan, an increase of 30.70% over the same period last year; realized net profit belonging to the parent company of 78.8017 million yuan, an increase of 44.16% over the same period last year; deducting non-return net profit increased by 33.22%, realizing basic earnings per share of 1.72 yuan per share.
Main points of investment
Excellent export performance and continue to expand new markets
In the first half of 2023, the sales revenue in the domestic market was 102.3865 million yuan, an increase of 21.10 percent over the same period last year, while that in the overseas market was 101.6983 million yuan, an increase of 42.42 percent over the same period last year. In the incremental part, the increment of the overseas market has exceeded that of the overseas market. At present, the overseas market is mainly in developed countries, of which sales revenue in North America is 30.5726 million yuan, up 36.19 percent over the same period last year, 49.4612 million yuan in Europe, up 36.96 percent over the same period last year, and 21.6644 million yuan in other overseas markets, up 68.68 percent over the same period last year. While stabilizing the North American and European markets, the company will also expand into emerging markets such as South America and Asia-Pacific.
The domestic market recovered in the second quarter, driven by both technology and policy.
Judging from the domestic growth data, the sales revenue of the domestic market decreased by 8.33% in the first quarter compared with the same period last year. With the gradual recovery of outpatient diagnosis and treatment in the second quarter, the number of surgeries increased rapidly, and sales revenue increased by 49.35% compared with the same period last year. During the reporting period, the company added more than 200 new products to the hospital. The scale of the domestic digestive tract diagnosis and treatment market will continue to maintain rapid growth, as early diagnosis and early treatment of cancer has become the trend of digestive tract diagnosis and treatment, the company can achieve rapid import substitution through its core products removable, replaceable hemostatic clamp, bipolar treatment system, ERCP surgical instruments in the field of early cancer treatment, biliary and pancreatic disease treatment and digestive tract hemostasis.
Launch an incentive scheme to boost confidence in development
The company launched the 2023 restricted stock incentive plan (draft). In accordance with the requirements of performance assessment, 2023-2025 income-end growth proposed a compound growth rate of about 30%, and net profit-side growth proposed a compound growth rate of about 25.88%. This round of incentives includes senior executives such as the general manager, as well as middle managers and core technical backbones, and the implementation of the incentives demonstrates confidence in future development.
Profit forecast
We forecast that the company's 2023E-2025E annual income is 4.91,6.43 and 848 million yuan respectively, the net profit is 1.93,2.56 and 332 million yuan, the EPS is 3.31,4.39,5.68 yuan respectively, and the current stock price corresponding to PE is 30.8,23.3,18.0 times respectively.
Risk hint
There are some risks, such as the risk of controlling the cost of medical insurance, the expansion of sales channels is not as expected, the promotion of research projects is not as expected, the overseas market expansion is not as expected, and the implementation of equity incentive plan is not as expected.