Performance: in the first half of 2023, the company achieved operating income of 649 million yuan, an increase of 45.24% over the same period last year, a net profit of 74 million yuan, an increase of 43.88%, and a non-return net profit of 72 million yuan, an increase of 50.2% over the same period last year. In the 2023Q2 quarter, the company achieved operating income of 404 million yuan, an increase of 66.66% over the same period last year, a net profit of 52 million yuan, an increase of 53.18%, and a non-return net profit of 50 million yuan, an increase of 64.23% over the same period last year.
The field of intelligent manufacturing business has been expanded, and the products of rehabilitation medical service have been improved: from a business point of view, 2023H1's intelligent manufacturing business has achieved revenue of 512 million yuan (year-on-year + 53%) and return-to-home net profit of 42 million yuan (year-on-year + 40%); revenue of rehabilitation medical equipment business has achieved 137 million yuan (year-on-year + 22%) and return-to-mother net profit 32 million yuan (year-on-year + 50%). 1) Pharmaceutical intelligent manufacturing plate: 2023H1's first intelligent detection product, "online near Infrared Spectrometer", was launched, which can realize intelligent closed-loop monitoring of real-time data transmission, indicating that the company's intelligent equipment business field has been expanded to intelligent online detection and product system has been further improved. 2) Rehabilitation medical equipment plate: the company continues to increase investment in research and development, improve and upgrade the physiotherapy and exercise therapy product system, 2023H1 Longzhijie added 7 registration certificates and filing certificates (including low temperature impact analgesia device, limb pressure cover, upper limb joint rehabilitation device, etc.), 2 registration certificates and filing certificates are under application.
Technology enabling marketing, industry-university-research project to promote product launch: for pharmaceutical intelligent manufacturing business, the company promotes marketing with technology, launches a new "DP-EPC" model, realizes full coverage of processes and technical services, strengthens the company's ability to control and contract large projects, and enhances its core competitiveness. Aiming at the rehabilitation medical equipment business, the company cooperates with South China University of Technology and other universities to set up an intelligent rehabilitation laboratory to carry out a number of industry-university-research projects such as rehabilitation-related brain modeling software, transcranial magnetic navigation system and treatment system. It is expected to enrich the product matrix related to rehabilitation medicine.
The urban business department + foreign trade business is growing steadily, and the rural business is expanding rapidly: the company selects and signs the agents of the urban department and the rural department in line with the business development model, at the same time, through regular training to enhance agents' sense of identity with the company. 2023H1's urban business and foreign trade business have grown steadily, while the rural business has expanded rapidly, expanding its coverage to 10 provinces and cities. For the earliest layout of Guangdong and Guangxi markets, the company aims to quickly cover the market and increase market share, for new areas, such as Sichuan, Chongqing, Hebei, Shandong four provinces and cities, the company based on the model project to drive the rapid promotion of the region.
Profitability declined slightly and rates were relatively stable: in the first half of 2023, the company's sales gross profit margin was 37.58%, down 2.66 pct from the same period last year; net sales profit rate was 11.25%, 0.16 pct lower than the same period last year; management expense rate was 6.7%, 2.65 pct lower than the same period last year; sales expense rate was 8.38%, 3.05 pct lower than the same period last year; R & D expenses were 38 million yuan, up 28.23% from the same period last year The R & D expenditure rate was 5.88%, reducing 0.78pct compared with the same period last year.
[investment advice]
The company implements the development strategy of "one body, two wings and two-wheel drive", the original intelligent manufacturing business has been horizontally expanded, the emerging rehabilitation medical service product matrix has been gradually improved, and the technology continues to empower marketing, driving the rapid growth of urban and rural divisions. We estimate that the operating income of the company in 2023, 2024, and 2025 will be 1.345, 15.21, respectively, with a net profit of 1.65, 2.19, 0.66, 0.97 and 24.07, respectively, respectively. The net profit of the parent will be 0.66 million, 0.97 and 14.96 times, respectively, and will be rated as "overweight".