Incident: Recently, the company released its 2023 performance report. The company achieved total operating revenue of 1,153 million yuan, an increase of 14.29% over the same period last year; net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was 113 million yuan, an increase of 11.71% over the same period last year.
The equipment business continues to grow rapidly, and NASH is worth looking forward to in the New Year. The French holding subsidiary's medical device business continued to expand, achieving an overall net profit of about 175 million yuan. Meanwhile, Resmetirom developed by the US stock listed company Madrigal is expected to be approved by the FDA for listing before March 14, setting a new milestone in NASH history, and NASH is entering a hot period. If NASH products are successfully launched, it is expected to accelerate the sales volume of the company's products.
In the future, the company will be driven collaboratively through “pharmaceuticals+devices+services”. In 2024, the company will nearly increase FibroScan's market share at home and abroad, increase the installation of portable devices under the pay-per-use model; at the same time, help Astorg, the French equity investment fund, the minority shareholder of Echosens, carry out the equity withdrawal. It is looking forward to introducing partners with superior data, market, management, and strategic resources that are consistent with the company's goals and can produce synergistic effects. Make good use of products, brands, and academic advantages, and implement the company's managed medical model through “drug+device+service” collaboration.
Investment advice: We expect the company to achieve operating income of 11.53/16.70/2,375 billion yuan and net profit to mother of 1.04/1.85/282 million yuan in 2023-2025, maintaining a “buy” rating.
Risk warning: Fibroscan sales fall short of expectations; the company's product sales progress falls short of expectations; risk of policy fluctuations; NASH drug approval falls short of expectations.