Angus publishes three quarterly reports for 2023. In the first three quarters, the operating income was 346 million yuan (up 31.59% from the same period last year); the net profit was 143 million yuan (up 47.58% from the same period last year); and the net profit was 140 million yuan (up 39.04% from the same period last year). Quarterly: 2023Q3 realized operating income of 140 million yuan (up 32.90% over the same period last year); net profit of 64 million yuan (up 51.99% over the same period last year); and net profit of 64 million yuan (up 46.77% over the same period last year).
Viewpoint: endoscopic diagnosis and treatment demand release led to a return to high growth; gross profit margin continues to improve, profitability continues to improve. Domestic and foreign markets simultaneously promote the expansion of business scale, the growth rate of overseas self-owned brands is eye-catching, and the market share of the company's products is expected to increase gradually.
The revenue side continues to grow at a high level, while the profit side grows more beautifully. Diagnosis and treatment demand recovery + endoscopic consumables market continuous expansion + domestic substitution promotion, the company's product demand is improving, the business scale continues to expand, and the income shows a good growth trend. The growth rate at the profit end is faster than that at the income end: 1) continuous optimization of automation-assisted costs; 2) economies of scale; 3) thickening of interest income.
With the simultaneous development at home and abroad, the potential can be expected. In the first three quarters, overseas income increased by 34.78% compared with the same period last year, while domestic income grew by 29.11%. In the third quarter alone, domestic income grew by 41.92% year-on-year, with an excellent growth rate. 1) domestic market: actively promote marketing upgrading, sales staff increased by more than 15% in the first half of the year compared with the same period last year, and plans to set up 12 new sales regional central city offices in China. 2) overseas market: products are sold to more than 40 countries and regions, 15 overseas registration certificates were added in the first half of the year, and the number of new overseas customers increased by 18%.
3) the gradual expansion of overseas independent products contributes to a new growth point: in the first half of the year, the sales of overseas own brands increased by 91.87% compared with the same period last year, accounting for 20% of overseas sales.
The gross profit margin continued to rise, and the expense rate remained stable during the period. 2023Q3 gross profit margin is 70.11% (year-on-year increase of 0.11pct), month-on-month increase of 2.70pct; sales expense rate of 10.06% (basically flat year-on-year), month-on-month decline of 2.52pct; management expense rate of 7.55% (down 0.25pct), month-on-month decline of 2.65pct; R & D innovation-based, R & D expenditure rate of 7.29% (year-on-year increase of 0.23pct); financial expenses-11.34 million yuan. Excluding the impact of financial expenses, deducting non-net profit margin is 37.23% (year-on-year increase in 0.36pct), month-on-month increase in 7.54pct, profit margin to maintain a good growth trend.
Profit forecast and investment advice: we expect the company's revenue from 2023 to 2025 to be 5.04,6.86 and 935 million yuan respectively, an increase of 35.77%, 36.08% and 36.41% respectively over the same period last year; the net profit of returning home is 1.93,2.51 and 324 million yuan respectively, an increase of 33.5%, 29.9% and 28.8% respectively over the same period last year; and the corresponding PE is 33x, 25x and 20x respectively, maintaining the "buy" rating.
Risk tips: industry policy changes; trade frictions and exchange rate fluctuations; R & D progress is not as expected.