The company's performance has been improving steadily. The company announced its 23-year results, achieving revenue of 666 million yuan (YOY +21.6%); adjusted net profit of 195 million yuan (YOY +49.5%); net profit of 135 million yuan, turning a loss into profit; and a gross profit margin of 76.9% (YOY+5.1pp), due to changes in product structure and scale effects. Revenue mainly comes from hemorrhagic stroke products (YOY +42%), atherosclerotic stenosis products (YOY +3.2%), acute ischemic stroke products (YOY +394.2%), and pathway products (YOY -35.9%).
Core products go hand in hand. The company announced its 23-year results, and Tubridge's dense mesh stent added more than 250 new admissions, driving the rapid release of the Fastrack microcatheter system. With the help of collection, NUMEN spring rings won the bid, and more than 350 new hospitals were admitted. Bridge vertebral artery drug stents added 500 new admissions through collection; NeuroHawk embolization stents and X-Track remote catheters have all been connected to the network in 30 provinces, with a total of 240 and 180 admissions respectively; clinical use of U-track support catheters increased by more than 120% year-on-year, continuing to contribute to revenue growth momentum.
The R&D cost rate has increased, and fruitful results have been achieved in the research pipeline. The company's 23-year results announcement, R&D expenditure rate of 24.81% (YoY+2.29PP) was due to investment in R&D projects. TubridgePlus blood flow guided dense mesh stents have completed all pre-clinical trial enrollment cases and have been submitted to the National Drug Administration for registration; Tigertriever intracranial embolization stents, W-track intracranial thrombus suction catheters, Q-track microcatheters, and Shentu Veyron guides have all been approved for marketing; registration applications for balloon catheter guide tubes, Neurohawk embolization stents 2nd generation, and remote umbrellas have been submitted for approval.
Profit forecasting and investment advice. The company's EPS is expected to be 0.42 yuan/share, 0.59 yuan/share, and 0.85 yuan/share in 24-26, respectively. Taking into account the company's position in the industry and business growth, the company was given a 24-year PS 7X. The corresponding reasonable value of the company was HK$11.30 per share, maintaining a “buy” rating.
Risk warning. Collection risks; sales promotion falls short of expectations; market competition intensifies.