Performance summary: In 2023, the company achieved revenue of 462 million yuan/ +43.72%, net profit of 136 million yuan/ +45.22%, net profit of not attributable to mother 122 million yuan/ +58.93%. 2024Q1 achieved revenue of 88 million yuan/ -8.24%, net profit attributable to mother of 122 million yuan/ -27.69%, net profit of 19 million yuan/ -27.42% after deducting non-return to mother.
Product iteration consolidates the cornerstone of rehabilitation business, and the resumption of procurement is expected to drive profit improvement. In '23, the company's revenue for magnetic stimulation/electrical stimulation/electrophysiology/consumables and accessories was RMB 2.00/0.63/0.65/0.76 billion, respectively, or +46.6%/+6.8%/+30.7%, respectively. In '23, the company's next-generation pelvic floor functional magnets, transcranial magnetometers, and group biofeedback devices were all iteratively upgraded and launched. The first-generation rehabilitation robots all completed evidence collection, enhancing product competitiveness and consolidating market share. 24Q1 Since recruitment work for public hospitals in some regions has yet to be carried out, it will affect the company's revenue growth rate in the short term. Furthermore, Q1 equity incentive costs affected nearly 6 million yuan. After excluding the impact, the net profit growth rate returned to mother was -8.76%, which is basically the same as revenue growth. It is expected that with the subsequent recovery in public hospital recruitment volume, the company's revenue and profit performance will gradually increase.
Continue to increase research and development of medical and aesthetic energy source products, and expect picosecond lasers to be approved to share the dividends of domestic alternatives. In '23, laser radio frequency products achieved revenue of 37 million yuan, +476.5% year-on-year. The company's medical and aesthetic energy source product matrix has been perfected. The new plastic magnetic products obtained FDA and NMPA certification in March and November 23, respectively, and were launched in early '24. They can meet the obstetrics and gynecology departments, pelvic floor centers, and medical and aesthetic institutions, and fill the gaps in the domestic field of magnetic stimulation to reduce circumference and shape. The picosecond laser completed clinical trials at the end of 23. The product feedback is good. It is expected to be approved by the end of the year to share the dividends of domestic alternatives in the picosecond laser industry. The high-frequency electrocautery device and the semiconductor laser therapy device of the subsidiary Coreda Laser were also tested in February and March 23, respectively. The company's R&D work on radiofrequency anti-aging and fat-dissolving equipment continues to advance, which is expected to provide long-term momentum for the company's growth.
Profit forecast and rating: We expect the company's net profit to be 1.61/1.96/237 million yuan in 2024/2025/2026, respectively, up 18.2%/21.9%/20.8% year-on-year. Considering the continuous improvement of the company's rehabilitation and medical and aesthetic product matrix, the scale of the main rehabilitation business is growing steadily, the laser radio frequency business can be expected in the future under the impetus of new products, and the company has sufficient growth momentum, giving it an “increase in weight” rating.
Risk warning: Increased competition in the industry has led to a price war for middle- and low-end rehabilitation products; pharmaceutical industry policies affect business progress such as bidding and installation; medical and aesthetic equipment R&D and registration progress falls short of expectations.