The annual report results are consistent with the rapid report: 1) In '23, the company achieved revenue of 951 million yuan/year over year, +30.63%, less than 289 million yuan/year over year, less than +38.96%; 2) 23Q4 achieved revenue of 283 million yuan/year over year, +104.86%, mother 52 million yuan/year on year +54.32%, less 50 million yuan/year on year.
High revenue and profit increase in the first quarter report: 1) 24Q1 achieved revenue of 310 million yuan/year over year. Among them, we expect domestic OK mirrors and crystals to grow steadily at a high base, and the annual production capacity of the contact lens business has climbed to 200 million pieces. We expect accelerated release in 24 years; 2) Profit side: to the mother of 103 million yuan/year on year +31.26%, after deducting no 99 million yuan/year on year +31.70%, gross profit margin of 71.61% /-11.55pct. Interest rate, net interest rate 31.72% /-8.55pct, Among them, the steady increase in R&D expenses and the rapid growth rate of revenue have led to a decrease in R&D rates.
The 23-year surgical business is booming domestic+rapid expansion overseas, and the 24-year national procurement is about to be implemented: 1) In '23, artificial crystals achieved revenue of 500 million yuan/+41.67%, gross profit margin of 89.23%/-0.31pct, ① domestic crystal revenue of 460 million yuan/ +37%, sales volume of more than one million tablets, gross margin basically remained around 90%. It is recommended to focus on factory price and release volume; ② The company sells crystals to 30+ countries, and overseas crystal revenue of 40 million yuan. yuan/year over year +127.11 %, gross profit margin of 77.90% /+2.95pct, and obtained multiple CE registration certificates such as single-focus EDOF astigmatism and multi-focus astigmatism at the end of 23. We expect significant growth in 24 years; 2) Revenue from other surgical products is 121 million yuan/+36.48% year over year, with a gross profit margin of 40.52%/-2.06 pct.
Myopia prevention and control sector: 1) Weak consumption power+increased competition, OK Mirror's growth rate is under pressure, and is still superior to the industry: OK Mirror achieved revenue of 219 million yuan/year over year +26.03%, gross profit margin of 85.13% /-1.11 pct, sales volume of 393,400 pieces/year over year +20.70%, average price of about 500 yuan; 2) Launched a variety of defocus frame lenses to form effective complementarity:
Revenue from other myopia prevention and control products was 57 million yuan/year over year +166%, with a gross profit margin of 68.77%/-3.62 pct. Among them, the “Puno Eye” and “Xinnuoti” defocus lenses are one of the complementary products of corneal shaping lenses. They are in an accelerated phase, and their revenue ratio is +247.32%; 3) Furthermore, the company will soon launch soft defocus lenses to further enrich the product line.
The contact lens business refers to the leader in the industry and has become the company's third growth curve: 1) In '23, contact lenses achieved revenue of 137 million yuan/year over year, +1504.78%, gross profit margin of 26.63%/+40.52%, sales volume of 60.37 million tablets. Looking ahead to 2024, we expect both major factories to achieve production capacity over 100 million tablets, and gradually improve profitability: ① The company holds 75% of Tianyan Pharmaceutical's shares and has multiple Caitong registration certificates. 23 million yuan/year over year, +899%, net profit - 0.08 billion yuan; ② Monthly schedule Fujian Youyoukang has since achieved revenue of 30 million yuan and net profit of -08 billion yuan. Youyoukang has obtained various registration certificates including silicon hydrogels; 2) Revenue of other vision care products was 0.13 million yuan/YoY +237.8%, with a gross profit margin of 25.10%/-22.75pct.
Continued investment in R&D, many key products are worth looking forward to: the company invested 132 million yuan in R&D in '23, +61.23% year-on-year. ① PR was registered in October 23. Aspheric eDOF crystals have been accelerated through clinical projects such as special review of innovative medical devices and trifocal astigmatism correction, and are progressing well; ② A number of hyaluronic acid products containing crosslinkers have entered clinical trials, and are expected to expand further in the medical and aesthetic field with R&D advantages.
Profitability: Achieved a gross sales margin of 76.01% /-8.74pct in 23 years, with a net sales margin of 30.07% /-9.14pct, mainly due to increased product promotion, production capacity at the Penglai production base is still being gradually released, leading to a rapid increase in operating costs and various expenses, and high unit costs in the contact lens business unit, causing the net profit growth rate to slow year-on-year; sales rate 19.28% /+0.64pct, management rate 12.09% /+0.27pct, financial rate 0.31% /+0.74pct, R&D rate 9.74pct 85%/ -1.54 pct.
Investment advice: As a platform-based company with strong R&D capabilities, the company has also verified its excellent commercialization capabilities in recent years. We expect the company's revenue to be 1,426 million yuan and 1,888 billion yuan respectively; net profit to mother will be 3.99 billion yuan and 516 million yuan, respectively, corresponding to the closing price PE on April 17, 2024, at 33 and 26X, respectively, maintaining the purchase rating.
Risk factors: Weak consumption power, risk of price reduction in collection, and hidden business volume falling short of expectations