Description of the event
The company released its 2023 annual report, achieving full year revenue of 2,425 billion yuan, an increase of 14.55%; realized net profit to mother of 745 million yuan, an increase of 2.02%; and realized net profit without deduction of 695 million yuan, a decrease of 1.14%.
Incident reviews
Q4 The revenue growth rate in a single quarter reached 24%, the highest growth rate for the whole year. On a quarterly basis, the company achieved revenue of 4.07, 5.60, 6.90, and 768 million yuan respectively in Q1-Q4, with year-on-year growth rates of 1.26%, 11.54%, 15.87%, and 24.39%, respectively. Q4 revenue growth was the highest for the whole year.
Color sorters/CBCT are growing steadily, and industrial inspection equipment is being rapidly released. By product, the company's color sorter, CBCT, and industrial inspection equipment achieved revenue of 1,476, 7.56 million yuan, and 157 million yuan respectively, with year-on-year growth rates of 19.44%, 5.51%, and 60.98%, respectively. Among them, CBCT achieved only single-digit growth. The main reason was that the industry experienced fierce price competition, which affected the unit price of the company's products, causing the company's revenue growth rate to be lower than the sales growth rate.
Profitability and resilience are strong. In terms of gross margin, the company's overall gross margin decreased by 1.48 pct to 51.49%. Among them, the gross margin of the color sorter decreased by 0.17 pct to 49.29%, and the gross margin of medical equipment (mainly CBCT business) decreased by 2.22 pct to 53.65%. Considering the fierce price competition in the CBCT industry, the company's profitability is resilient.
Increase digital transformation and promote high-quality development. The company officially released the “American and Asian American Dental” oral health digital cloud platform and the Meiya Zhilian Industrial Internet Platform, which marks the initial completion of the company's “one lake, two clouds” digital operation system based on a data center and two major industrial Internet platforms. Among them, the “American and American Dental” oral health digital cloud platform has now been used by more than 3,000 customers.
There are sufficient stocks of new medical equipment, waiting for the release period to arrive. The spinal surgery navigation equipment independently developed by the company has successfully obtained a medical device registration certificate, marking that the company has made breakthrough progress in the field of high-end non-dental medical imaging. It is currently undergoing exemplary promotion and application in many hospitals. It has successfully cooperated with dozens of spinal surgeries, and is moving towards mass market application. In February 2024, the mobile head CT independently developed by the company also obtained a medical device registration certificate issued by the State Drug Administration, further enriching the company's medical product line.
Profit forecasting and valuation
The company's revenue for 2024-2026 is expected to be 28.28, 32.89, and 3.784 billion yuan, with year-on-year growth rates of 16.62%, 16.29%, and 15.05%; net profit to mother is 8.32, 9.65, and 1110 billion yuan, with year-on-year growth rates of 11.76%, 15.94%, and 14.98%. The company's 2024-2026 performance corresponding to PE was 20.31, 17.52, and 15.23 times, respectively, maintaining the “gain” rating.
Risk warning:
New product development falls short of anticipated risks; market competition increases risks.