Event: the company released its semi-annual report in 2023, with operating income of 5.073 billion yuan (+ 14.38%), net profit of 459 million yuan (+ 42.32%), and non-return net profit of 411 million yuan (+ 16.74%). The impact of non-recurrent profit and loss on the current net profit is 47.2164 million yuan (- 30.1639 million yuan in the same period last year), mainly due to changes in the fair value of transactional financial assets. From a quarterly point of view, single Q2 realized operating income of 2.634 billion yuan (+ 13.43%), net profit of 262 million yuan (+ 34.65%), and non-return net profit of 228 million yuan (+ 11.64%).
Comments:
In terms of business, in the first half of 2022, the company realized income of 2.014 billion yuan (+ 10.10%) for medical device manufacturing products, 1.064 billion yuan (+ 41.74%) for pharmaceutical equipment products, 456 million yuan (+ 3.76%) for medical services, and 1.539 billion yuan (+ 8.69%) for medical commercial products. In the pharmaceutical equipment business, the core subsidiary Chengdu Yingde achieved an income of 370 million yuan (+ 73.62%), a net profit of 25.21 million yuan (+ 226.35%), a significant increase in net interest rate, while Shanghai Yuanyue realized an income of 55.9047 million yuan (+ 12.45%) and a net profit of-7.8521 million yuan, gradually reducing losses.
In the first half of 2023, the company's gross profit margin was 27.41%, an increase of 1.23pcts over the same period last year, mainly due to the optimization of the company's revenue structure. The proportion of revenue from manufacturing products increased by 2.51pcts, and the net profit rate was 9.41%, an increase of 1.96pcts over the same period last year. In terms of expenses, the sales / management / R & D / financial expense rates of 23H1 are 8.66%, 4.71%, 3.52%, 0.17%, respectively, with year-on-year changes in 0.08pcts/0.21pcts/0.71pcts /-0.31pcts, of which R & D expenses are + 43.49% compared with the same period last year. We believe that the company continues to improve the level of product intelligence while launching new products. Carry on the product iteration to break through the high-end market and overseas market, and the profitability is expected to continue to improve.
The company continues to consolidate the two core businesses of medical devices and pharmaceutical equipment: 1) Medical devices: the focus of sensory control and third-class hospitals sign cleaning, disinfection and sterilization sales contracts related to "da Vinci" products. Radiation therapy X-ray image guidance system "obtains three types of medical device registration certificate in advance, reflecting strong product innovation and iterative ability." 2) Pharmaceutical equipment: Chengdu Yingde has made a breakthrough in overseas and biological fermentation customers, while introducing a new project of chromatography and purification equipment, and Shengben's membrane materials have also made a breakthrough. The company's medical services sector is gradually and orderly withdrawing from the non-performing assets of the medical services sector, and the medical business sector has the business of controllable risks, stable profits and low resource consumption. We are optimistic about the further optimization of the company's business structure.
Profit forecast. We expect the company's net profit from 2023 to 2025 to be 737 million yuan, 919 million yuan and 1.065 billion yuan, an increase of 46.7%, 24.6% and 15.9% respectively over the same period last year. We believe that the company will benefit from the incremental demand of the new pharmaceutical infrastructure and pharmaceutical machinery industry. In the future, the two major sectors of medical devices and pharmaceutical equipment will develop rapidly. Product upgrading and structural optimization are expected to further enhance the company's profitability. With reference to comparable companies, we give the company 2023 20X PE (originally 2022 15x), corresponding to the target price of 31.60 yuan (+ 47%), and continue to maintain the "better than the market" rating.
Risk tips: newly signed orders are less than expected risks; market competition aggravates risks; policy regulatory risks.