Event: On October 31, 2023, the company released its report for the third quarter of 2023. In the 2023Q3 quarter, the company achieved revenue of 1,322 billion yuan, +11.93% year-on-year; net profit of the mother - 119 million yuan; net profit after deduction of 126 million yuan, +37.75% year-on-year. In the first three quarters of 2023, the company achieved revenue of 3,584 billion yuan, -4.56%; net profit of net income of 356 million yuan, -145.76%; net profit after deduction of net profit of 442 million yuan, -7.15% year-on-year.
Comment:
Management is effective and steady, and performance is gradually improving. As a leading global company in the field of PVC gloves, Lanfan Medical's comprehensive strength ranks among the top medical device companies in China. The main reason for the decline in the performance of the protective division to which glove products belong is that terminal demand began to decline after the rapid expansion of production capacity in the glove industry during the epidemic, and product prices fell, resulting in a large amount of overcapacity in the glove industry. However, the third quarter showed a continuous and obvious narrowing trend. The comprehensive sales volume of glove products increased by more than 11% year on year, gross margin increased markedly, and export volume gradually increased, making every effort to expand sales.
Overseas business continues to expand, and the performance of the Cardiovascular Division is improving. Due to oversupply in the glove market, the Cardiovascular Division carried the company's performance banner. Sales revenue in the Chinese market increased by more than 80% year on year, the Southeast Asian and North Asian markets grew by more than 20%, and Europe and emerging markets also grew. Puteng, a new product approved in the past two years? Graceful Moss-coated Coronary Balloon Dilation Catheter and BioFreeDOM? The volume of polymer-free drug-coated coronary stents has increased this year. and Allegra? A total of 28 countries and regions have achieved sales of transcatheter aortic valves in 28 countries and regions around the world, and first sales were achieved in 11 countries and regions this year, including Chile, Greece, Israel, Mexico, and Turkey. The overseas market layout effect is remarkable, and the influence of global brands continues to increase.
Profit forecast: The company's revenue for 2023-2025 is expected to be 5076, 5916, and 6966 million yuan, respectively, up 3.6%, 16.5%, and 17.7% year on year; net profit is -422, -78, and 214 million yuan, respectively, and EPS is -0.42, -0.08, and 0.21 yuan, respectively.
Risk factors: R&D risk of innovative technology and products; business channel management risk; product quality and potential liability risk; market competition risk; exchange rate fluctuation risk.