Incidents:
23H1 achieved operating income of 282 million yuan (-4.86%), net profit of 63 million yuan, (-17.92%), net profit of 48 million yuan (-32.75%); 23Q2 achieved operating income of 121 million yuan (-27.38%), net profit of 28 million yuan (-35.01%), net profit of 0.28 billion yuan (-35.01%), net profit of 118 million yuan (-57.28%).
Comment:
Short-term performance is affected by collection and pressure, and long-term optimism about core strengths boosts performance. The company's revenue and profit mainly come from spinal implant consumables. As procurement of high-value spine consumables is gradually implemented in various provinces and cities, the decline in admission prices for product terminals has put a lot of pressure on the company's performance. However, the company formulated a relatively comprehensive bid plan in the initial report and second report volume in spine collection, and obtained good bid results. Currently, the company has won the bid at a high price with a comparative advantage in Beijing and Jiangsu. Twelve provinces and cities including Henan and the Beijing-Tianjin-Hebei “3+N” Orthopedic Trauma Alliance have won the bid at a relatively high price. The market sales of the company's trauma business will further increase, and market share is expected to expand.
A number of orthopedic products have achieved breakthroughs in research and development, and the product layout has become more complete. In 23H1, 1) The company has updated and iterated general products for lumbar back spine, optimized implants and designed new supporting tools. The entire system is compatible with 4.5, 5.5 and 6.0 bars, and is equipped with staple strengthening screws. A system can solve a series of indications from vertebral fractures, deformities, and pediatric surgery. 2) The company's new PEEK intervertebral fusion device was registered and listed, further completing the spine product line layout. 3) The company completed the development of a new minimally invasive spinal surgery positioning guide product and obtained a registration certificate. The product has perfected the application of minimally invasive internal fixation, and plays a good role in improving surgical efficiency and optimizing surgical results. 4) Minimally invasive internal fixed system development project completed. 5) Completed the development project for spinal orthopedics, fusion devices, and bone cement screw internal fixation systems.
Cross-enterprise and multinational cooperation have been deepened, and overseas popularity continues to rise. The company within 23H1 has reached a strategic cooperation with SPINEARTSA. The two sides will cooperate in the field of non-integrated technology, focusing on BAGUERA-C artificial cervical disc replacement technology. This cooperation will improve Sanyou Medical's product line in the field of non-integrated cervical spine technology and enhance corporate competitiveness. In terms of multinational cooperation, the company relies on Implanet to continue to promote the development of international business. Based on patented innovative products, the company truly directly faces the market and customers, and makes every effort to promote the company's therapeutic innovation technology output.
Profit forecasts and investment suggestions:
The company is expected to achieve revenue of 580/650/810 million yuan in 2023-2025, net profit of 1.57/172/213 million yuan, corresponding earnings per share of 0.63/0.69/0.86 yuan/share. Covered for the first time, giving the company an investment rating for “increasing its holdings.”
Risk warning: There is a risk that the price of collection will be drastically reduced, and the valuation results will fall short of the expected risk.