Brief performance review
The company released the 2023 annual report and the 2024 first quarter report. In 2023, the company achieved operating income of 231 million yuan, an increase of 18.24%; realized net profit attributable to the owner of the parent company of 41 million yuan, an increase of 13.89% year on year; and the company's net profit attributable to owners of the parent company in 2023 after deducting non-recurring profit and loss was 37 million yuan, an increase of 55.54% year on year.
In 2024, the Q1 company achieved operating income of 57 million yuan, an increase of 28.59%; realized net profit attributable to owners of the parent company of 0.15 million yuan, an increase of 91.19% year on year; net profit attributable to owners of the parent company in 2024 after deducting non-recurring profit and loss was 12 million yuan, an increase of 87.05% year on year.
23 years of business analysis
The company's artificial hard brain (spine) membrane patches, craniomaxillofacial repair and fixation systems, and new products (absorbable regenerated cellulose oxide hemostasis and dura mater medical glue) accounted for 60.47%, 26.41%, and 10.41% of revenue, respectively.
In 2023, the company's craniomaxillofacial repair and fixation system achieved sales revenue of 69.6667 million yuan, an increase of 61.13% over the same period last year. China's demand for cranial defect repair continues to grow. It is estimated that the market size of craniomandibular repair and fixation products in China will reach 1.75 billion yuan in 2023. The company provides clinical repair and fixation solutions covering children to adults, craniofacial and maxillofacial repair and fixation systems. In 2023, the company achieved sales revenue of 69.6667 million yuan, an increase of 61.13% over the same period last year. With the introduction of volume procurement of craniomaxillofacial repair products, the terminal price of PEEK materials has dropped significantly, and the advantages of PEEK craniomaxillofacial repair system products have become more prominent. We expect the penetration rate of PEEK material surgery to continue to grow rapidly.
In 2023, more than 100,000 tablets of absorbable regenerated cellulose oxide hemostasis products were used clinically at home and abroad. The absorbable regenerated cellulose oxide hemostasis product developed by the company is one of the few industrialized oxidized regenerated cellulose products in China. It has good hemostatic effects. Its industrialization will break China's long-term import monopoly on neurosurgical absorbable regenerated cellulose oxide hemostasis products. In 2023, more than 100,000 tablets of absorbable regenerated cellulose oxide hemostasis products were used clinically at home and abroad. We expect that with the implementation of bulk procurement of hemostatic materials, the terminal price of the product will be more reasonable, which is expected to increase the penetration rate of hemostatic materials and the share of domestic brands. At the same time, the company's absorbable regenerated cellulose oxide is expected to expand product indications and extend to other surgical fields, and the future business growth rate is expected to increase further.
In 2023, the company actively participated in the bidding process related to dural medical glue. The dural medical adhesive products independently developed by the company have characteristics such as low swelling and neutral pH after forming the gel. They solve problems such as poor sealing effect and easy blockage of existing products, and reduce the clinical application risks of existing products such as compression of brain tissue. We believe that Maipu Medical is deeply involved in the field of neurosurgery, that the combination of products has obvious synergistic effects, and that the company has great potential for the development of dural medical adhesives.
At the same time, with the implementation of volume procurement of dural (spinal) membrane patches, the cost of original surgical consumables has decreased, which is conducive to increasing the opportunities for use of dural medical glue. The company is expected to become number one in the industry in the future.
The company actively lays out domestic and overseas medical device markets. The company established a German subsidiary in 2011, beginning the path of international development. While serving the domestic market, it actively competes in the international market. Currently, the sales and service network covers nearly 90 countries and regions.
In the domestic market, the company's products have entered more than 1,600 domestic hospitals, and the product and brand penetration rate continues to rise.
24-year business plan
In 2024, the company will focus on product R&D, marketing and product quality assurance. The company will expand new departments, new indications or improve the usage forms of the original products in a targeted manner, actively prepare products for longer term research and reserve, and continue to pay attention to products under clinical trial to obtain certification as soon as possible; cultivate the domestic market, expand the international market, expand brand influence and enhance market penetration; improve production efficiency and ensure product quality through cost optimization management, and continue to provide linkage between market and production.
Profit forecasting
The company's main products in 2023 were affected by volume procurement and dealer inventory removal, and the company's revenue growth rate slowed; negative factors were gradually eliminated with the implementation of volume procurement policies; PEEK craniomaxillofacial repair products are expected to continue to provide rapid growth in the short to medium term; the company's new product business is rapidly released, which is expected to become a new growth point for the company in the future. It is expected that the company's profitability will increase further in the future, and it is expected that the valuation will gradually be digested.
The company's revenue side for 2024-2026 is expected to be 290 million yuan, 388 million yuan and 529 million yuan, respectively, with revenue growth rates of 25.61%, 33.79% and 36.34%, respectively. Net profit to the mother is expected to be 55 million yuan (original value of 51 million yuan), 82 million yuan (original value was 81 million yuan) and 121 million yuan respectively from 2024 to 2026. Net profit growth rates of 35.27%, 47.61% and 48.40%, respectively.
Risk warning:
Volume procurement policy uncertainties, and product sales volume fell short of expectations.