The company released its three-quarter report for 2023. In the first three quarters of 2023, the company achieved operating income of 1,982 million yuan, an increase of 25.23% over the previous year; net profit of 327 million yuan, an increase of 102.04% over the previous year; and net profit after deducting non-return mother of 305 million yuan, an increase of 116.86% over the previous year. In 2023Q3, the company achieved operating income of 669 million yuan, an increase of 8.80% over the previous year; net profit of 122 million yuan, an increase of 34.00% over the previous year; net profit after deduction of 117 million yuan, an increase of 33.84% over the previous year.
Hyaluronic acid continues to be rapidly released, driving increased profitability. The company's hyaluronic acid 2023H1 revenue increased 114.35% year over year, and the 2023Q3 revenue growth rate is still over 50% year over year. Among them, “Haima”, which is positioned as high-end, is not easy to deform and shift after injection and has long-lasting effects. It has been recognized by the market. 2023H1 sales increased 337% year over year. We estimate that it will maintain high growth in 2023Q3, driving the company's performance growth and profitability. 2023Q3, the company's gross sales margin was 72.84%, up 2.43pp year on year, net sales margin was 17.68%, up 2.69pp year on year. The company's fourth-generation organic cross-linked hyaluronic acid is expected to be approved by the end of 2023 or 2024H1, and the growth momentum of hyaluronic acid performance is strong.
The sales volume of high-end intraocular lenses is worth looking forward to, and the ophthalmology product line continues to expand. The company's intraocular lenses increased 58.15% year over year in the first half of 2023. As the backlog of demand for cataracts is gradually released, we estimate that the growth rate in Q3 will slow slightly. The company's innovative hydrophobic molded aspherical intraocular lens, which was approved for registration and listing in China in June 2023, is expected to usher in growth in 2024 with marketing promotion and channel development. At the same time, clinical trials of the company's key R&D projects, such as hydrophilic aspherical multifocal intraocular lenses, hydrophobically molded aspherical trifocal intraocular lenses, and aqueous water-permeable PRL, are progressing in an orderly manner.
Profit forecast and investment advice: The company's hyaluronic acid volume is expected to continue, and the market share of high-end crystals is expected to continue to increase. We have adjusted our profit forecast. It is estimated that the company's net profit from 2023-2025 will be 4.56, 5.71, and 686 million yuan respectively, and the stock price corresponding to PE on November 2, 2023 will be 36.6, 29.2, and 24.3 times, respectively, maintaining the “increase in holdings” rating.
Risk warning: New product release falls short of expectations; R&D progress falls short of expectations; risk of medical policy changes