Core views:
The company's performance declined due to orders from US customers. According to the company's 23 annual report, the company achieved revenue of 471 million yuan (YOY -1.31%); net profit to mother of 146 million yuan (YOY -20.19%). The decline in 23-year performance was mainly due to (1) a sharp increase in the company's endoscopic lens shipments. The actual market time for new systems for US customers was delayed from the original plan, which affected the company's shipments; (2) the company implemented equity incentives in '23, which led to a year-on-year increase in share payment fees; gross profit margin 63.72% (YoY-0.63PP). According to Wind, the company achieved revenue of 118 million yuan (YOY -20.74%) and net profit to mother of 38 million yuan (YOY -20.68%) in 24Q1. The decline in performance was mainly due to 23Q1's lens shipment scale doubling compared to previous years. The high base during the same period affected the current period's results.
Overall rate increase. According to Wind, the company's 23-year R&D rate was 14% (YoY+1.44pp), mainly due to an increase in personnel and share payment expenses; an 11.32% management rate (YoY+2.43pp), mainly due to an increase in share payment expenses and fixed asset depreciation expenses; and a sales rate of 3.85% (YoY+0.59pp), mainly due to the company actively exploring the market and increasing personnel expenses.
The company actively carries out product research and development. According to the company's annual report for 23 years, (1) the company's next-generation endoscopy system for US customers was officially launched in September 23; (2) the new 4mm hysteroscope developed by the company for the US market began mass production preparations and is expected to be officially launched in June '24; 2.9 mm cystoscopy, 3 mm pediatric laparoscopy, and open surgical exoscopes are also being developed; (3) The company's laparoscopes with dozens of specifications such as fluorescence, defogging, and 3D fluorescence for the domestic market are being registered and verified; (4) Endoscopes such as hysteroscopy, cystoscopy, and sinus endoscopes are being registered and verified one after another; (4) Endoscopes such as hysteroscopy, cystoscopy, and sinus endoscopes are being registered and verified one after another; (4) Endoscopes such as hysteroscopy, cystoscopy, and sinus endoscopes are being registered and verified one after another; (4) Endoscopes such as hysteroscopy, cystoscopy, and sinus endoscopes are being registered and verified one after another; (4) Endoscopy Speculum products have started Registration tests are carried out, and it is expected that the product will be registered in mid-'24.
Profit forecasting and investment advice. The estimated net profit for 24-26 will be $187 million, $251 million, and $338 million, respectively. Compatible with EPS 1.54 yuan/share, 2.06 yuan/share, 2.78 yuan/share. The company was given a 24-year PE30X, with a corresponding reasonable value of 46.13 yuan/share, maintaining a “buy” rating.
Risk warning. Product orders fell short of expectations, sales fell short of expectations, and exchange rates fluctuated greatly