Events:
On August 25, the company released its mid-2023 report that the operating income in the first half of 2023 was 282 million yuan, down 4.86% from the same period last year, and the net profit was 62.9176 million yuan, down 17.92% from the same period last year. The net profit was 48.2627 million yuan, down 32.75% from the same period last year. In the second quarter, the single-quarter income was 121 million yuan, down 27.38% from the same period last year, and the net profit returned to the mother was 28.26 million yuan, down 35.01% from the same period last year. The non-return net profit was 17.61 million yuan, down 57.28% from the same period last year.
Comments:
The performance of Shuimu canopy is bright, and the collection of spine affects sales.
2023H1 achieved operating income of 282 million yuan, down 4.86% from the same period last year. Among them, the sales revenue of Shuimu canopy was 37.0173 million yuan, an increase of 100.50% over the same period last year. The ultrasonic bone knife of Shuimu canopy has obtained China Ⅲ medical device registration certificate, CE, FDA, ANVISA and ARTG registration, which will contribute new performance growth points for the company; trauma and spinal sales revenue totaled 245 million yuan, down 11.86% from the same period last year, mainly affected by the implementation of high-value spinal consumables procurement. The gross profit margin of 2023H1 was 83.53%, down 6.76pct from the same period last year. During the period, the expense rate was 54.94%, which decreased 4.70pct over the same period last year, including sales expense rate 41.45%, year-on-year decrease of 6.63pct rate, management expense rate of 5.54%, year-on-year increase of 1.09pct, R & D expense rate of 10.57%, year-on-year increase of 2.06pct, financial expense rate of-2.61%, decrease of 1.23pct over the same period last year, and increase of operating cash flow by 50.69%.
Lay out the whole industry chain of orthopaedics, rely on Implanet to promote the development of international business
2023H1 deeply explores the fields of orthopedic biomaterials, vertebroplasty PKP bags, spinal endoscopes and orthopedic robots, adding ultrasound power systems, vertebroplasty PKP bags, artificial cervical intervertebral discs and other products to contribute new profit growth points for the company. As of June 30, the company held 41.03% of Implanet, making it its largest single shareholder. The associated enterprises and Implanet have a total investment loss of 8.0233 million yuan under the equity method, which has an impact on the net profit.
The collection and extraction of spine is ideal, and the number of cooperative hospitals is increasing.
The company makes a comprehensive bidding plan and obtains better winning results in the first and second reports in the spine collection, which lays a good foundation for the company to expand its market share and sustainable development. With the advantage of relatively winning bid and high price, as well as the innovation of patented products and therapies, 2023H1 continues to expand sales and sink channels, increasing the number of dealers and cooperative hospitals, and increasing product sales.
Profit forecast: we expect the company's operating income from 2023 to 2025 to be 6.64 million yuan 8.96 / 1.106 billion yuan respectively (the previous value is 7.30 pound 920 million yuan 1.124 billion). The downward adjustment is mainly due to the impact of price reduction and the expansion of new business, and the net profit of return to the mother is 1.47 million million yuan (the previous value is 2.05pm 26933 million yuan), taking into account the steady growth of the spinal cord implant consumables market. The core competitiveness of the company's spine products is outstanding, maintaining the "buy" rating.
Risk hint: product research and development schedule risk, product sales promotion risk, core product failure risk.