Core views:
The company's performance for the first quarter of '24 exceeded expectations. According to Wind and the company's quarterly report for '24, the company achieved total operating revenue of 89 million yuan (YOY +71.01%); net profit to mother of 0.04 million yuan (YOY +144.7%); and gross profit margin of 60.54% (YOY-7.79pp). The outstanding performance of 24Q1 is mainly due to (1) the company actively explores domestic and foreign markets, and its products are widely recognized by the market, which is positively influenced by the combined volume procurement policy; (2) the company strengthened cost control, and the operating expenses ratio dropped sharply compared to the same period last year.
The company has been actively expanding domestic/overseas markets for 24 years. According to the company's annual report for '23, domestically, the company's 3D surgery volume will maintain a high growth rate. It will be guided by the atrial fibrillation market, actively carry out “Ice and Fire” series product promotion activities, carry out basic electrophysiological skills training programs, and gradually expand the marketing network; overseas, the company plans to efficiently expand markets in Latin America, Asia Pacific and Europe in '24; increase TrueForce? Pressure monitoring catheters are being used and promoted in countries such as France and Italy, and efforts are being made to use pressure catheters more than 1,000 cases. IceMagic? The cryoablation series of products strives to obtain CE certification in 24, opening up a new situation for domestically produced atrial fibrillation treatment plans to go overseas.
R&D innovation continues to advance. According to the company's annual report for 23 years, the pressure pulse ablation catheter project has completed clinical enrollment and has entered the follow-up phase; the renal artery ablation project has entered the clinical trial stage; for the marketed product TrueForce? Catheters, EasyStars? Calibration catheter, IceMagic? Key products such as cryo-ablation catheters are continuously optimized and iteratively developed; the company continues to promote cooperation with Stereotaxis. The company has submitted a registration application for its core product, the fifth-generation “pan-vascular interventional surgical robot magnetic navigation system,” which is expected to obtain NMPA registration approval in 24 years.
Profit forecasting and investment advice. The estimated revenue for 24-26 is 466 million yuan, 680 million yuan, and 1,024 million yuan, respectively. The corresponding EPS is 0.06 yuan/share, 0.1 yuan/share, and 0.17 yuan/share.
Taking into account the company's position in the industry and business growth, the company was given a 24-year PS 26X with a corresponding reasonable value of 25.73 yuan/share, giving it a “buy” rating.
Risk warning. Slow commercialization promotion, sharp decline in performance or risk of loss, shortage of professionals