Event
According to the company's semi-annual report of 2023, the operating income of the company in the first half of 2023 was 4.301 billion yuan, down 19.35 percent from the same period last year, and the net profit from its mother was 961 million yuan, down 24.17 percent from the same period last year. The non-net profit was 905 million yuan, down 28.38 percent from the same period last year.
In 2023, Q2 realized operating income of 1.864 billion yuan, down 33.05% from the same period last year, and the net profit returned to its mother was 365 million yuan, down 49.55% from the same period last year. The net profit from non-return to home was 342 million yuan, down 52.19% from the same period last year.
Event comments:
Affected by the income base of products related to the epidemic in the same period last year, the company's 2023Q2 revenue growth is under pressure 2022Q2 due to the spread of the epidemic, the company novel coronavirus antigen testing reagents, PCR instrument, nucleic acid testing reagents, etc., we expect the total income to be about 1 billion yuan, after deducting other business income of 2022Q2 about 1.784 billion yuan, 2023Q2 company income of about 1.864 billion yuan, a slight increase over the same period last year.
Innovative medical devices still grew steadily, and anaesthesia surgery benefited from the high growth of collection in the first half of 2023. In the first half of 2023, the company's medical device sector revenue was about 2.016 billion yuan, down about 32.58% from the same period last year. Excluding antigens and PCR laboratory-related instruments and equipment products, conventional business Q1 in the medical device sector grew 5.6% year-on-year and 14% year-on-year, and achieved 10-11% growth in the first half of the year. (1) Cardiovascular intervention, the operating income of 2023H1's innovative product portfolio increased by 13.27% compared with the same period last year. New products such as disposable radial artery compressors and disposable guide sheaths in the coronary field have been put on the market one after another. The fourth generation of atrial septal defect occluder and MemoSorb biodegradable patent foramen ovale occluder are also expected to be approved in 2023. In addition, the clinical progress of dozens of new products laid out by peripheral drug balls, electrophysiology, neuroregulation and other plate companies is advanced as scheduled, and it is expected to maintain rapid growth in the future. (2) Surgical anesthesia, anesthesia revenue increased by 21.16% in the first half of 2023. The company's electric stapler and other products have rapidly increased their market share with the help of the collection policy, and have now entered hundreds of medical institutions. Other products, such as absorbable material tissue clips, have entered the clinic and are expected to continue the trend of rapid growth in the future.
Pharmaceuticals and services business developed steadily, actively expanding new products and increasing business growth points Pharmaceuticals: in the first half of 2023, the pharmaceutical sector earned 1.6 billion yuan (yoy-8.5%), of which 1.404 billion yuan was earned from preparations (generic drugs) and 195 million yuan from raw materials, of which 2023Q1 increased by 4% compared with the same period last year. 2023Q2 decreased by 22%, mainly because the secondary collection price of clopidogrel in Jiangsu Province was too low to abandon the bid. The inventory of the channel circulation company needs to be digested and withdrew, so the drugs fell by 8% in the first half of the year. The company focuses on innovative research and development in cardiovascular, endocrine, metabolic and other fields, and three-target GLP-1 products have entered clinical phase I. at the same time, the company's Dura glycopeptide injection bioanalogues have carried out phase III clinical studies, and Simigrup bioanalogues have completed pilot production verification. It is expected to apply for IND in the first quarter of 2024, and the approval of diabetes drugs is also expected to promote good growth of pharmaceutical business.
Medical services: the company's income from medical services and health management reached 686 million yuan in the first half of 2023, an increase of 15.23% over the same period last year. 2023Q1 increased 16% year-on-year, daiji2023Q2 increased 14% year-on-year, of which Hefei Cardiovascular Hospital's revenue in the first half increased by 70% over the same period last year, basically offsetting the decline in nucleic acid testing revenue from independent third-party laboratories. The company also continues to accelerate the promotion of artificial intelligence medical application, the multi-parameter non-invasive blood glucose meter has submitted an application for registration, and the invasive blood glucose detector AICGM has completed its clinical application, which is expected to be declared in the early fourth quarter of 2023.
Investment suggestion
The total revenue of the company from 2023 to 2025 is expected to be 10.054 billion yuan, 11.757 billion yuan and 13.691 billion yuan (the previous forecast is 11.132 billion yuan, 131.07 billion yuan and 153.17 billion yuan), an increase of-5.2%, 16.9% and 16.5% over the same period last year. The corresponding net profit of returning mother was 2.206 billion yuan, 2.668 billion yuan and 3.124 billion yuan (the previous forecast was 2.536 billion yuan, 2.984 billion yuan and 3.482 billion yuan), an increase of 0.1%, 20.9% and 17.1% over the same period last year. The EPS is 1.17,1.42,1.66 yuan, and the share price PE before the corresponding price is 13 times, 11 times and 9 times respectively. The company is a leading enterprise of medical devices in China, with stable profitability and continuous promotion of new products, with a relatively cheap valuation and a "buy" rating.
Risk hint
Market environment risk.
Product research and development is not as risky as expected.
The quantity of innovative products is less than the expected risk.