Incident: The company released its semi-annual report for 2023. In the first half of the year, the company achieved operating income of 967 million yuan, an increase of 6.97% over the previous year; realized net profit of 346 million yuan, an increase of 6.79% over the previous year.
The gross margin of color sorters has increased markedly, and the net profit margin has declined slightly. Looking at a single quarter, in 2023, Q1 and Q2 companies achieved operating income of 407 million yuan and 560 million yuan respectively, +1.26% and +11.54%, respectively; net profit of 125 million yuan and 221 million yuan respectively, respectively, was +10.05% and +5.03%, respectively. In the first half of the year, the company achieved an overall gross profit margin of 52.50% and a net interest rate of 35.80%, +1.08 pct and -0.06 pct, respectively, over the previous year. By business, the gross margin of the color sorter business was +2.74 pct to 50.44% year on year, and the gross margin of medical equipment was -2.94 pct to 55.27% year on year.
Revenue has been growing steadily, and CBCT's growth rate has slowed due to the impact of the general environment. By business: ① The color sorter achieved revenue of 564 million yuan, an increase of 5.22% over the previous year. Currently, the domestic agricultural product sorting market has entered a stage of steady development, but overseas markets, especially those in developing countries and regions, are still in the development period and have great market potential. ② Medical equipment achieved revenue of 303 million yuan, an increase of 1.28% over the previous year. Currently, the domestic dental industry is in the development stage. Although the special environment has had a certain impact on the development of the industry, it will not change its future development trend. ③ X-ray industrial inspection machines achieved revenue of 81 million yuan, an increase of 50.27% over the previous year. Revenue from industrial inspection increased significantly, and demand in fields such as food inspection, general industrial product inspection, security inspection, and tire inspection continues to be discovered.
Overseas markets continue to increase investment, and the launch of new products further enriches the product matrix. The company continued to increase investment in overseas markets. While stabilizing exports of color sorters, it also increased its overseas medical market layout and marketing efforts. The company's overseas export business developed steadily in the first half of the year. The company is actively strengthening the pace of marketing new products. The spinal surgery navigation device, which obtained a registration certificate at the beginning of the year, has successfully completed the first operation, taking the first step in product marketization. In addition, the Pure-Detail image enhancement technology introduced by the company can more clearly restore bone tissue and soft tissue structure details to help physicians accurately diagnose and treat; the company has released a new high-end seated oral CBCT, which can more effectively meet the filming needs of different treatment groups. In addition, the company also officially released the “Meiya Dental” dental health digital cloud platform. The platform is based on truly solving the pain points of clinic management and meeting the needs of intelligent diagnosis and treatment, and helps the digital development of the dental industry.
Profit forecast: According to the company's performance in the first half of the year, we adjusted the company's net profit forecast for 2023-2025 to 800/907/110 billion yuan, corresponding to 25/22/18 times PE, maintaining the “increase in holdings” rating.
Risk warning: The development of the medical device industry falls short of expectations, overseas demand falls short of expectations, and market competition is intensifying.