Overview of events

The company's 23Q1-Q3 realized revenue of 2.166 billion yuan (yoy+51.2%), net profit of 317 million yuan (yoy+237.5%), and net profit of 230 million yuan (yoy+153.7%) 23Q1-Q3 gross profit margin is 45.5% (+ 1.1pct), sales / management / financial expense rates are 16.0%, 12.1%, 2.1%, respectively,-2.6/-2.0/-0.6pct The gross profit margin of 23Q3 is 45.8% (+ 0.4pct) and the home net profit rate is 10.5% (+ 2.6pct). We speculate that it is mainly due to the increase of income scale, the reduction of costs caused by the improvement of purchasing bargaining power, and the decrease of expense rate brought about by the maturity of chain operation model.

The revenue / return net profit / non-return net profit realized by single 23Q3 is 0.82 billion yuan per yoy+45.1%/92.8%/94.5%, respectively.

The expansion plan is advancing steadily and the management momentum is good.

According to the layout strategy of "national chain + city integration", the company completed the acquisition of Dongguan **** Ophthalmology on January 5, 2023. Hubei Puri Eye Hospital and Shanghai Fengxian Puri Eye Hospital opened in May and June this year respectively. On September 4, the company plans to carry out share repurchase with a total repurchase capital of no more than 5-6kw and a maximum repurchase price of 151.74 yuan per share. The repurchased shares will be used for employee stock ownership plans or equity incentives at an appropriate time in the future, demonstrating management's confidence in long-term development and the company's value orientation.

Performance forecast and investment advice

We adjust our profit forecast and estimate that the company's revenue from 2023 to 2025 will be 28.0,36.0 and 4.5 billion yuan respectively (the original value is 28.0,33.4 and 4.1 billion yuan), and the corresponding growth rates will be 62%, 29% and 25% respectively. The net profit of homing is 3.4,3.6 and 460 million yuan (the original value is 3.1,3.2 and 410 million yuan), and the corresponding growth rate is 1556%, 6% and 29% respectively. The corresponding growth rate is 2.3,2.4,3.1 yuan (original value is 2.1,2.1,2.8 yuan); corresponding to the closing price of 99.4 yuan per share on October 31, 2023, the PE is 44Universe 4132X respectively; maintain the "holding increase" rating.

Risk hint

The speed of expansion is lower than expected; the risk of medical malpractice or industry negative events; the risk of intensified competition in the industry; the risk of underperformance caused by COVID-19 epidemic repeatedly; and the risk of industry policy.