Event
The company released its mid-2023 report: in the first half of 2023, the company achieved revenue of 204 million (yoy+11.6%), net profit of 58.84 million (yoy+26.1%) and non-net profit of 49.74 million (same as yoy+20.2%). The gross profit margin of 2023H1 sales is about 68.31%, and the net sales profit margin is about 29.68%.
2023Q2 realized operating income of 95.28 million (yoy-12.2%), net profit of 26.46 million (yoy+3.4%) and non-net profit of 22.73 million (yoy+7.8%). 2023Q2's gross sales margin rebounded to 74.26%, with a net sales margin of about 28.62%.
Event comment
2023Q2 revenue declined compared with the same period last year, and the gross profit margin increased due to the increase in the proportion of new products. 2023Q2 achieved operating revenue of 95.28 million (yoy-12.2%). In the same period last year, the company had part of the revenue from antigen test kit moulds, which increased the revenue base. The gross profit margin of 2023Q2 sales is about 74.26%, which is significantly higher than 2023Q1's 63.12%.
In May 2022, the company's own pelvic floor magnetic stimulation products were promoted and put on the market, and in August 2022, the company's reproductive rehabilitation products such as uterine rejuvenation instrument (automatic version) and high frequency evaluation electrocautery (which can be used in pelvic floor and medical beauty) were launched. we expect these products to have good sales performance in 2023. The income of the company's reproductive rehabilitation sector in 2023 is about 25 million yuan, close to the level of the whole year in 2022. The introduction of these new products and the increase in the proportion of sales revenue have promoted the increase of 2023Q2's gross profit margin.
In the first half of 2023, the company's core category, basin bottom products reached 108 million yuan, consumables and accessories 46 million yuan. We expect that the out-of-hospital production and health market has not yet effectively recovered, and the in-hospital market has relatively recovered quicker. And led to the company's electrical stimulation, magnetic stimulation and conventional supplies procurement growth.
In overseas markets, the company also began to make efforts in the first half of 2023. The company aims at Southeast Asian markets and gradually advances in Asia-Pacific markets such as Indonesia, Malaysia and the Philippines. Chinese culture and habits are similar to those in China. It is expected that overseas markets will also become another increment of the company's performance in the future.
The company has strong barriers and outstanding competitive advantages in the field of pelvic floor.
The company's long-term vision is to focus on women's health and beauty. in the field of women's health, the company has spent nearly 10 years building competitive barriers in the field of pelvic floor rehabilitation, and has the opportunity to expand into the field of "beauty" in the future. At present, the product line of the company is also very rich. The self-developed product color ultrasonic diagnosis and evaluation system Mederola series has obtained the domestic registration certificate and entered the stage of trial production and clinical evaluation. The 64-channel pelvic floor ultrasonic intelligent diagnosis system has been confirmed by the II medical registration certificate. The trial production stage is being confirmed and is scheduled to be put on the market in 23 years. The launch of pelvic floor intelligent diagnosis equipment will further improve the product layout of the company in the pelvic floor field. "Intelligent image diagnosis + diagnosis + electricity + magnetism + radio frequency" to achieve the use of scene closed loop, but also to enhance the attractiveness of customers.
In addition, the company has also launched a medium-and long-term equity incentive plan, which examines the homing net profit for the four fiscal years 2023-2026. Based on the 2022 net profit, the growth rate of the homing net profit in 2023-2026 is not less than 30%. The company's equity incentive goal is long-term, but also continue to encourage management to expand the area of business, the future reproductive rehabilitation is expected to achieve the same income scale as the pelvic floor business.
Investment suggestion
It is estimated that the company's 2023-2025 revenue is expected to reach 479 million yuan, 622 million yuan and 834 million yuan respectively (the previous forecast is 518 million yuan, 687 million yuan and 933 million yuan), with year-on-year growth rates of 27.1%, 29.7% and 34.1%, respectively. The net profit from 2023 to 2025 reached 137 million yuan, 193 million yuan and 255 million yuan respectively (the previous forecast was 138 million yuan, 193 million yuan and 258 million yuan), with year-on-year growth rates of 12.8%, 40.1% and 32.5%, respectively. The EPS from 2023 to 2025 is 1.37,1.91,2.54 yuan respectively, and the corresponding PE estimates are 25x, 18x and 13x, respectively. Based on the strong synergy of the company's product portfolio, the company's medium-and long-term equity incentives point out the direction for performance growth and maintain the "buy" rating.
Risk hint
The risk of new product development and promotion is not as expected.
Market competition aggravates risks.