Incidents:
The company announced its 2023 results. Operating revenue was RMB 204 million, up 79.5% year on year, achieving gross profit of 125 million yuan, up 124% year on year, and net loss narrowed to 146 million yuan, down 20.3% year on year, of which operating losses narrowed by 40%. In line with market expectations.
Comments and opinions:
Rapid growth in performance, significant growth in Eagle Hitomi Healthcare and Eye Health
The company announced its 2023 results. Operating revenue was RMB 204 million, a year-on-year increase of 79.5%, achieving gross profit of 125 million yuan, a year-on-year increase of 124%, and gross margin increased by 12.2% to 61.3%. The Eagle Eye Health and Eye Health sector grew significantly, achieving revenue of 84.58 million yuan and 74.98 million yuan respectively, with year-on-year increases of 200% and 71.9%, respectively.
Continuously expand terminal outlets, and the number of users has increased dramatically:
The number of active outlets increased by 139% to 5,671, including 1,132 primary care and community outlets. Through SaMD and health risk assessment programs, 6.83 million cases were tested in 2023, an increase of 58.1% over the previous year, and 31,459 major positive cases were identified, which has significant medical value.
The company continues to expand its myopia prevention and control business. Myopia prevention and control AI reached 893,300, and visual training AI reached 918,400. The company is actively expanding overseas markets such as Indonesia, Vietnam, South Africa, Saudi Arabia, the United Arab Emirates and Malaysia, accounting for 4.5% of overseas revenue, which is expected to increase to 7% in 24 years.
Underlying AI and myopia prevention and control industry space is vast:
The company is committed to retinal AI, myopia prevention and control AI, and visual training AI. The market space in the industry is broad. According to TAM data, the retinal AI market is expected to reach 34 billion yuan in 2030, and the myopia prevention and control market is expected to reach 210 billion yuan by 2030. The company is expected to achieve rapid growth in the midst of the major development of the industry.
The company is actively expanding research and development. Products in fields such as hypertension, arteriosclerosis, vascular obstruction, and age-related macular degeneration will soon be launched. General Artificial Intelligence (AGI) is a huge development trend, and its application is increasingly being integrated into medical treatment, increasing medical sales and value. The company continues to invest in AGI-related technology research and development. It has 114 R&D personnel and a 23-year R&D cost of 112 million yuan. The company is actively formulating strategies to introduce AGI in assisted consultation, disease testing and personalized medical advice to easily and efficiently connect doctors and patients without time or space limitations.
Our point of view:
The company has focused on medical AI for the prevention and control of eye and myopia for many years. Its products are strong, and it has played great medical value in early detection and early diagnosis of major diseases. With the rapid expansion of key outlets and users, and in line with major development opportunities in the medical AI industry, the company's performance is expected to grow rapidly. Currently, the market value is only HK$1.7 billion. The value is undervalued. Active attention is recommended.