Introduction to this report:
Driven by new products, the company's various product lines are growing rapidly, advancing in the research pipeline, providing lasting growth momentum and maintaining an increase in holdings rating.
Key points of investment:
Maintain an increase in holdings rating. Maintain the 2024-2025 forecast EPS of 7.77/10.17 yuan, add the 2026 forecast EPS of 13.07 yuan, give the 2024 target PE 29X according to the sector center, maintain the target price of 227.40 yuan, and maintain the increase rating.
The performance was in line with expectations. In 2023, the company achieved revenue of 1,187 billion yuan (+32.4% year over year, same below), net profit of 492 million yuan (+38.0%), after deducting non-net profit of 462 million yuan (+42.7%). Under a complex external environment, the company still achieved strong growth throughout the year, and its resilience was outstanding.
Driven by new products, various product lines grew rapidly, and overseas performance was outstanding. As Castor chest owners and Minos owners continued to grow rapidly and the new Talos chest owners gradually released, the aortic stent category achieved revenue of 940 million yuan (+28.1%) in 2023; the new Fontus was successfully released, and the intraoperative stent category achieved revenue of 132 million yuan (+54.6%); and peripheral and other types achieved revenue of 115 million yuan (+49.3%). By region, overseas revenue of 82 million yuan (+56%) was achieved in 2023, and overseas revenue is expected to maintain rapid growth as overseas registration and clinical application of major products continue to advance.
The research pipeline is progressing, and the growth momentum is enduring. The company attaches great importance to innovative product research and development, and invested 260 million yuan (+51%) in R&D in 2023. Aortic blocking balloons and Cratos chest owners have been submitted for registration, and clinical trials such as aEGISII venous stents, multi-branch thoracic stents, and flow restriction stents are progressing steadily; peripheral venous stents, peripheral spring rings, etc. have been submitted for registration, and clinical progress is smooth with venous venous filters, mechanical thrombectomy catheters, and lower knee medicine balls; TIPS stents in the field of tumor intervention have been approved and are in the clinical follow-up stage. Microsphere products are in the pre-marketing clinical implantation stage. As new products are approved for sale one after another, the company can reach a wider range of markets and is expected to achieve continuous growth in performance.
Risk warning: collection risk, new product release falls short of expectations, product development under development falls short of expectations