Overview of events

The company released the mid-2023 report: in the first half of 23, the operating income was 749 million yuan, an increase of 12.18% over the same period last year, and the net profit was 134 million yuan, an increase of 30.13% over the same period last year. The deduction of non-net profit was 131 million yuan, an increase of 29.32% over the same period last year.

The performance growth is in line with market expectations, and the 12-dimensional core products maintain steady growth.

In the first half of 23 years, the company achieved operating income of 749 million yuan, an increase of 12.18% over the same period last year, and realized deduction of non-net profit of 131 million yuan, an increase of 29.32% over the same period last year. The growth of performance was in line with market expectations. From the perspective of business, the company's service business achieved revenue of 546 million yuan, an increase of 13.6% over the same period last year, and the core benefited from the continuous growth of varieties such as multivitamins (12) for injection. Drug income was 202 million yuan, an increase of 8.3% over the same period last year, of which the income of various trace elements was 87 million yuan, an increase of 3.68% over the same period last year, and that of children's multivitamin injection (13) was 22 million yuan, an increase of 8.61% over the same period last year.

Looking to the future, with the increase in parenteral nutrition demand brought about by aging, the company's core products, injection multivitamins (12), other trace elements, children's multivitamin injections (13) and reserve products under development, lay the foundation for the company's medium-and long-term performance growth.

Profitability increased month-on-month, continuously increasing R & D investment to enable future performance growth

The company's gross profit margin and net profit margin in the first half of 23 years were 50.89% and 17.88% respectively, compared with the same period of 22H1, the gross profit margin remained relatively stable, and the net profit margin showed an improvement trend. According to the analysis, the increase of net interest rate is affected by the decline of management expense rate and sales expense rate. In addition, the company continues to strengthen R & D investment and reserve potential core pipelines to lay the foundation for future performance growth.

Investment suggestion

Considering the local collection of some provinces, adjust the company's profit forecast: the expected operating income of the company in 2023-2025 will be adjusted from 2.32 billion yuan to 2.480 billion yuan, and the EPS will be adjusted from 0.71 pound 1.36 yuan to 0.79 pound 1.01 yuan, corresponding to the closing price of 10.41 yuan per share on 22 August 2023, PE will be times that of 17-13-10.

Risk hint

Core product health insurance price reduction risk, new product promotion less than expected risk, collection risk