Incident: The company released its 2023 annual report. In 2023, it achieved operating income of 1.19 billion yuan (+32.4%), net profit to mother of 490 million yuan (+38%), and net profit of non-return to mother of 450 million yuan (+42.7%).
Aortic intervention is the leader, and performance continues to increase. On a quarterly basis, the company's revenue for the 2023Q1/Q2/Q3/Q4 quarter was 2.9/3.4/27/300 million yuan (+10.8%/+67.3%/29.9%/+28.6%), and realized net profit to mother was 1.3/1.6/1.1 billion yuan (+1.1%/+69%/+26.9%/+85.7%), respectively. The main products of major companies are widely recognized by the market, product competitiveness continues to increase, and production and sales are steadily increasing. In terms of profitability, the company's gross margin in 2023 was 76.5% (+1.3pp), sales expenses ratio was 11% (-0.64pp), and financial expenses ratio was -0.7% (+0.5pp), which remained stable. Net margin was 41% (+1.77pp).
The core products are released faster. The company's innovative products Castor branch aortic stent and delivery system, Minos abdominal aortic stent and delivery system, and Reewarm PTX drug balloon dilatation catheter continue to gain strength. The number of new products Talos straight thoracic aortic stent system and Fontus branch intraoperative stent system are growing rapidly. In terms of terminal coverage, the Castor branch aortic laminating stent and delivery system has covered more than 1,000 terminal hospitals, the Minos abdominal aortic stent and delivery system has covered more than 800 terminal hospitals, and the Reewarm PTX drug balloon dilatation catheter has covered more than 900 terminal hospitals.
The development of globalization is advancing at an accelerated pace. In 2023, the company's overseas sales revenue increased 55% year-on-year. The company has now sold in 31 countries and expanded its business to other countries and regions in Europe, Latin America and Asia Pacific; among them, Castor achieved its first implantation in Singapore and several European countries, and has already entered 16 countries; Minos achieved its first implantation in Turkey and other countries; Hercules Low Profile straight pipe was first implanted in Singapore and many European countries, with a total of 21 countries; Reewarm The PTX drug balloon dilator catheter was implanted for the first time in Brazil.
Profit forecast and rating: The company's EPS is expected to be 7.76, 9.83, and 12.15 yuan respectively from 2024 to 2026. The company's share of innovative devices will continue to increase, and the effects of strategic transformation will gradually show, maintaining the “buy” rating.
Risk warning: risk of exchange rate fluctuations, risk of policy control, release of innovative products or falling short of expectations.