Event: according to the company's semi-annual report of 2023, 2023H1 achieved operating income of 220 million yuan (yoy+63.87%), net profit of 71 million yuan (yoy+84.43%) and non-return net profit of 65 million yuan (yoy+141.60%).
Comments:
The business of the three cornerstones has fully recovered, the layout of magnetic stimulation products is comprehensive, and the growth is strong. With the recovery of routine diagnosis and treatment, the effect of the company's early investment in the market is gradually highlighted. 2023H1 achieved operating income of 220 million yuan (yoy+63.87%), of which the second quarter continued a high growth trend, achieving operating income of 124 million yuan (yoy+55.29%). According to the line of business, the three cornerstone businesses of pelvic floor rehabilitation, mental rehabilitation and neural rehabilitation recovered comprehensively, showing a good growth trend in the first half of the year, and new businesses such as medical beauty and urology continued to expand, laying the foundation for long-term development. In terms of products, with the successful collection of evidence from many products such as the second generation pelvic floor functional magnetic stimulator and the second generation transcranial magnetic stimulator, the 2023H1 income of magnetic stimulation products has increased significantly, reaching 98 million yuan (yoy+76.45%), making it the largest category. In addition, the revenue of electrical stimulation products is 31 million yuan (yoy+15.40%), and that of electrophysiological products is 29 million yuan (yoy+41.18%). Consumables and accessories to achieve revenue of 34 million yuan (yoy+35.08%), showing a good growth trend.
Profitability continues to improve, M & A + self-research two-wheel drive, growth is expected. 2023H1 achieved a net profit of 71 million yuan (yoy+84.43%) and a net sales interest rate of 32.10% (yoy+3.58pp), gradually improving its profitability. In terms of investment, on the one hand, the company strengthens its self-research ability and continues to increase its R & D efforts in advanced technologies such as electrical stimulation, magnetic stimulation, electrophysiology, rehabilitation robots and medical energy sources. 2023H1 invested 33.05 million yuan in R & D, accounting for 15.04% of business income. With the company's active R & D investment, the products continue to optimize and upgrade and the product line continues to be rich. Magnetic stimulation, laser, radio frequency and other new products have entered the registration and application stage one after another. On the other hand, the company pays attention to investment mergers and acquisitions, after the acquisition of Kruida laser, business integration is smooth. Through "M & A + self-research", the company's product pipeline is constantly enriched and growth is expected.
Profit forecast: we expect the company's operating income from 2023 to 2025 to be 4.82,6.06 and 751 million yuan respectively, with year-on-year growth rates of 49.8%, 25.8% and 23.9% respectively, and the return net profit is 1.64,2.10 and 259 million yuan respectively, an increase of 74.8%, 27.8% and 23.4% respectively over the same period last year, and the corresponding share price PE is 27,21 and 17 times respectively.
Risk factors: new product sales are less than expected risk, dealer management risk, R & D progress is not as expected risk.