Core views:
23H1's performance was in line with expectations, and revenue from acute ischemic stroke products achieved high growth. The company released its 2023 mid-year report results, achieving revenue of 299 million yuan (YOY +45.08%) and net profit of 64 million yuan (YOY +169.34%), of which overseas business revenue was 15 million yuan (YOY +27.3%); gross profit margin of 77.75% (YOY+9.04pp), and operating profit of 82.2 million yuan (YOY +505.2%). Revenue mainly comes from hemorrhagic stroke products (YOY +76%), atherosclerotic stenosis products (YOY +17.1%), acute ischemic stroke products (YOY +1459.5%), and pathway products (YOY -27.7%).
Core products go hand in hand. Tubridge? Confidential network stents added more than 150 new admissions, driving Fastrack? The microcatheter system discharges quickly. NUMEN? Spring rings won the bid through collection, and more than 150 new admissions were added to 23H1. Bridge? The vertebral artery drug stent won the exclusive bid through collection, and clinical usage increased dramatically; Neurohawk? Plug holder and X-track? Remote catheters have all been connected to the Internet in 27 provinces, with a total of 250 and 100 admissions respectively; u-Track? Clinical usage of supporting catheters increased by more than 150% year-on-year, continuing to contribute new momentum to revenue growth.
Productive results have been achieved in the research pipeline. Tubridge Plus? Blood flow-guided dense net stents completed all pre-clinical trial enrollment cases; Tigertriever? intracranial embolization stent, W-Track? intracranial thrombus suction catheter, Q-track? Microcatheter and MetoVeyron? All guide wires have been approved for sale; balloon catheter tubes, Neurohawk? The registration application for the plug holder 2nd generation and the remote umbrella has been submitted for approval.
Profit forecasts and investment recommendations. It is estimated that in 23-25, the company's EPS will be 0.27 yuan/share, 0.36 yuan/share, and 0.5 yuan/share, respectively. Taking into account the company's industry position and business growth, PS 15X was given 23 years to maintain the company's corresponding reasonable value of HK$21.75 per share and maintain a “buy” rating.
Risk warning. Collection risks; sales promotion falls short of expectations; market competition intensifies.