2023Q4 公司实现营收7.37 亿元/+14.05%，归母净利润-0.83 亿元/-182.26%，扣非归母净利润-0.84 亿元/-109.66%。2024Q1 公司实现营收7.03 亿元/+14.97%，归母净利润506 万元/-82.03%，扣非归母净利润-195 万元/-132.62%。Report summary:
Incidents:
Jiangsu Wuzhong released the 2023 annual report and the 2024 quarterly report. In 2023, the company achieved revenue of 2,240 million yuan/ +10.55%, net profit due to mother of -72 million yuan/loss reduction, net profit of non-return to mother -99 million yuan/ -2.45%, and non-recurring profit and loss of 0.27 million yuan, mainly from non-current asset disposal.
2023Q4 achieved revenue of 737 million yuan/ +14.05%, net profit attributable to mother -83 million yuan/ -182.26%, and net profit after deducting non-attributable net profit of -84 million yuan/ -109.66%. 2024Q1 achieved revenue of 703 million yuan/ +14.97%, net profit of 5.06 million yuan/ -82.03%, net profit of non-return to mother - 19.5 million yuan/ -132.62%.
Comment:
The medical and aesthetic business is growing rapidly, and the company's revenue is growing steadily. In 2023, the company's revenue was 2.24 billion yuan/ +10.55%, by industry: 1) pharmaceutical industry revenue of 1,840 million/accounting for 82.13%/+29.46%; 2) trade industry revenue of 377 million/accounting for 16.82%/-35.64%; 3) medical and aesthetic biotechnology industry revenue of 7.62 million/accounting for 0.34%/+2696.72%; 4) other business revenue 0.70%/+13.47%. The company's pharmaceutical sector is showing steady performance, and the low-profit trade business is gradually shrinking. Medical and aesthetic revenue mainly comes from Class II dressing products. It is expected that it will maintain rapid growth along with the listing of Asafei.
Asafei began the first batch of institutional sales, and the medical and aesthetic production line reserves were improved. The company's Tongyan Needle layout went smoothly. 1) Three types of certificates were approved on January 22, 2024. 2) The National Injection Conference was held on March 18. A number of authoritative industry experts visited for guidance and provided professional endorsements for the products. 3) The Chinese name “Asafei” was officially established on March 25. 4) The launch agency press conference was held on April 23, and agreements were signed with more than 70 organizations to begin official sales. Using PDLLA microspheres, a new generation of recycled materials, the molding effect is more obvious. The product has rich clinical experience around the world and is widely recognized by consumers. In addition, the company is actively building a medical and aesthetic team and introducing many outstanding people in the industry, which is expected to quickly create star products and gradually scale them up. Furthermore, the company's projects such as hyaluronic acid, recombinant collagen, and lipolytic injections are progressing steadily, which is expected to continue to bring performance growth points to the medical and aesthetic sector.
Investment suggestion: The company has transformed from a pharmaceutical company into medicine and beauty, and has innate advantages in R&D, production and product approval. Aesofei has successfully launched into the market. The R&D progress of recombinant collagen products is at the forefront of the industry, and the company's medical and aesthetic sector has sufficient growth momentum. Considering that medical and aesthetic medicine is still expanding this year, performance will be rapidly released after 2025, lowered to 2024, and the forecast for 2025 is expected. The estimated revenue for 2024-2026 is 2,810 billion/ 3.324 billion/ 3.382 billion, and net profit to mother is 139 million/252 million/383 million, corresponding to PE 53 times/29 times/19 times. Maintain a “buy” rating.
Risk warning: Market competition intensifies; product promotion falls short of expectations; industry regulatory risks; performance forecasts and valuation judgments fall short of expectations.
