Event: the company released its results for the first half of 2023. In 2023, H1 achieved operating income of 198 million (year-on-year + 48.4%), homed net profit of 39.87 million (year-on-year + 277.1%), and non-home net profit of 33.71 million (year-on-year + 338.9%). In 2023, Q2 achieved revenue of 125 million (year-on-year + 53.8%), net profit of 26.46 million (year-on-year + 224.0%), and non-return net profit of 22.33 million (year-on-year + 261.0%).
The profit growth rate far exceeds the revenue growth rate, and the contract debt lays the foundation for high annual growth: 23H1's net operating cash flow is 95 million (+ 490.78%), gross profit margin is 52.64% (- 0.62pct), sales expense rate is 5.13% (+ 0.93pct), and marketing efforts are intensified. The management expense rate is 22.74% (- 5.29pct), the financial expense rate is-2.14% (- 0.06pct), and the R & D expense rate is 7.24% (- 6.74pct). This is mainly due to the formation and sales of some R & D projects transferred from R & D expenses.
At the end of the second quarter, the contract debt reached a record high of 111 million yuan, laying the foundation for high growth in 2023.
The rapid growth of safe infusion + blood purification, the layout of injection pens and contact lenses opened the income ceiling: 23H1 safe infusion single machine income 31.01 million (+ 49.9%), safe infusion line machine income 110 million (+ 77.9%), blood purification single machine income 7.42 million (+ 101.2%). Currently, the company is working on projects including automatic assembly of injection pens and contact lenses (color lenses). The contact lens business plans to submit applications for three types of medical device registration certificates in September. At present, the first main line is in the process of debugging and optimization. Already has the production capacity, the target year-end yield of more than 80%, is expected to open a new round of growth curve of the company.
Profit forecast and investment suggestions: the company has orderly order production, high capacity utilization, steady growth in performance, continuous technological innovation, process improvement, opening up new markets, and continuously enhance competitiveness, with good development prospects. It is estimated that the company's operating income from 2023 to 2025 will be 6.04% and 7.92% respectively, with a year-on-year growth rate of 57.5%, 31.1% and 30.6%, respectively, and its net profit will be 1.2% and 1.6%, respectively, with a year-on-year growth rate of 79.6%, 32.9% and 31.6%, corresponding to PE of 30-23-17. Maintain a "buy" rating.
Risk hint: order confirmation is not as expected, technology development risk, contact lens registration approval progress is not as expected, market competition intensifies