Haohai Biotech announced its 2023 performance report. In 2023, it achieved operating income of 2,654 billion yuan (up 24.59% year on year); realized net profit of 416 million yuan (up 130.58% year on year); realized net profit after deduction of 383 million yuan (up 141.52% year on year). By quarter: 2023Q4 achieved operating income of 672 million yuan (up 22.74% year on year), up 0.5 pct month on month; realized net profit of 89.32 million yuan (up 377.12% year on year); realized net profit after deduction of 78.83 million yuan (up 330.78% year on year).
Opinion: The dual axis of “ophthalmology+medical aesthetics” is driving steady revenue growth, and the increase in the share of high-margin hyaluronic acid products is driving the continuous rise in profitability. The company's continued repurchases show full confidence in future development.
The revenue side grew steadily, and the sharp increase on the profit side was mainly related to changes in product structure and the low base over the same period.
Strong demand for global cataract surgery recovery combined with strong demand for aesthetic products has driven steady revenue growth, while strong revenue growth in high-margin hyaluronic acid products has led to an increase in profit levels. In 2023, the company's net profit margin was 15.68% (up 7.21pct year on year), and the net profit margin after deduction was 14.45% (up 6.99pct year on year).
The buyback shows the company's confidence in development. According to the company's announcement, as of January 31, 2024, the company had repurchased a total of 1.2573 million A-shares, accounting for 0.73% of the company's total share capital. The highest transaction price was 113.50 yuan/share, the lowest transaction price was 86.58 yuan/share, and the total repurchase cost was 132 million yuan.
Driven by medical aesthetic+ophthalmology dual engines, consolidating the foundation for future growth:
In the field of medicine and aesthetics, the company has formed a business matrix covering the four major categories of hyaluronic acid, epidermal growth factors, radio frequency and laser equipment, covering the three major application scenarios of medical beauty, lifestyle beauty, and home beauty, which can meet the comprehensive medical and aesthetic consumption needs of end customers for the epidermis, dermis and subcutaneous tissue. The high-end hyaluronic acid “Sea Charm” continues to unleash growth potential to drive increasing profitability. Fourth-generation organic cross-linked hyaluronic acid products are in the registration and application stage, and are expected to contribute new growth points.
In the field of ophthalmology: The company has formed a full industry chain covering cataract surgery, myopia prevention and refractive correction, eye surface and fundus diseases, and optometry materials. As of June 30, 2023, there are 7 ongoing research projects in ophthalmology. Hydrophobic molded aspherical trifocal intraocular lenses, hydrophilic aspherical multifocal intraocular lenses, and second-generation aqueous aqueous permeable PRL are undergoing clinical trials, and the research pipeline continues to advance.
Profit forecast and investment suggestions: We expect the company to achieve net profit of 416 million yuan, 545 million yuan, and 677 million yuan in 2023-2025, with year-on-year increases of 130.5%, 30.9%, and 24.4%, respectively. The PE corresponding to the current stock price is 43x, 33x, and 26.5x, respectively. Maintain a “buy” rating.
Risk warning: Sales and promotion of new products fall short of expectations; risk of changes in industry policies, etc.