Results grew rapidly in 2023, and the first quarter of 2024 was affected by the high base for the same period in 2023. In 2023, the company achieved revenue of 484 million yuan (+27.04%), net profit attributable to mother of 146 million yuan (+38.39%), and net profit of non-return to mother of 137 million yuan (+39.39%). Among them, the 23Q4 single quarter revenue was 82 million yuan (+207.49%), net profit attributable to mother was 0.05 billion yuan (+125.55%), and net profit of non-return to mother was 0.2 billion yuan (+108.28%). Revenue for the first quarter of 2024 was 141 million yuan (-14.87%), net profit attributable to mother was 46 million yuan (-13.28%), net profit after deducting non-attributable net profit of 45 million yuan (-13.17%).
The company grasped the trend of portability, miniaturization and specialization in the ultrasound industry, and achieved rapid growth in performance in 2023. There were delays in confirming some orders in the fourth quarter of 2022, leading to a high base for the first quarter of 2023 and a decline in results for the first quarter of 2024.
Expense rates have declined, and net interest rates due to mother have increased. Gross profit margin of 58.81% (-0.48pp) in 2023, gross margin decreased slightly, mainly due to export business, which accounted for a large share of foreign exchange; sales expense ratio 10.92% (-2.29pp), management fee ratio 7.22% (-1.52pp), R&D expense ratio 15.93% (-4.52pp), financial expense ratio -4.90% (+2.50pp), four rate 29.16% (-5.83pp), net profit margin to mother of 30.27% (+2.48pp), as the scale effect continues Improved, net profit margin increased.
The volume of portable devices is driving the growth of overseas business. The company continues to build the “Future Ultrasound SonoFamily” product concept, covering the full range of products from stroller color ultrasound, portable ultrasound, and handheld ultrasound. SonoAir, the world's first ultra-lightweight smart portable ultrasound, obtained FDA market access in the first half of 2023. The volume was smooth and promoted rapid growth in overseas business. The company's overseas revenue in 2023 was 420 million yuan, an increase of 41.4% over the previous year.
Investment advice: The company focuses on “small, convenient, intelligent and specialized” to create a differentiated competitive advantage, and achieve rapid growth in performance in 2023. Considering the impact of domestic industry restructuring, the profit forecast for 24 and 25 was lowered, and the profit forecast for 2026 was added. The estimated revenue for 2024-26 is 6.75/8.85/1,101 billion yuan (originally 24-25 million yuan was 7.7/98 billion yuan), a year-on-year growth rate of 40%/31%/24%, and net profit to mother 2.11/2.80/ 363 million yuan (previously 24-25 million yuan), the year-on-year growth rate is 44%/32%/30%. The current stock price corresponds to PE = 16/12/9x, and raised to “buy” “Enter” rating.
Risk warning: risk of R&D failure; single risk of product structure; risk of exchange rate fluctuations.