Core views:

Puri Ophthalmology announced 23 and 24Q1 results. In '23, the company achieved revenue of 2,718 billion yuan (+57.50%); net profit attributable to mother of 268 million yuan (+1202.56%); net profit after deducting non-return to mother of 198 million yuan (+967.07%). 24Q1 operating income of 676 million yuan (+4.01%); net profit attributable to mother of 16.92 million yuan (-89.58%); net profit after deducting non-return to mother of 19.08 million yuan (-73.28%).

Driven by the cataract and eye disease business, the company's 23 years of high performance. According to the company's annual report, the traditional advantage project has maintained steady growth, with revenue of 1,296 million yuan (+33.52%); the optometry business is the company's key development business in recent years, with revenue of 397 million yuan (+52.65%); based on the rapid release of backlog demand for elective surgeries during the pandemic, cataract and eye disease business grew rapidly. Especially in cataracts, the company seized the opportunity to promote high-end techniques, and introduced leading experts such as Lu Yi to build a professional brand, with revenue of 594 million yuan (+137.96%) and comprehensive eye disease revenue of 417 million yuan (417 million yuan) ( +78.66%). In addition, Dongguan **** Eye Hospital also reported a certain increase for the company. Its 23-year revenue was 213 million yuan (+18.40%) and net profit was 52.31 million yuan (+51.81%).

23Q4 showed a slight decline due to seasonal fluctuations, and 24Q1 performance was under pressure against the backdrop of a high base for the same period.

According to Wind, the company achieved revenue of 6.50, 7.28, 7.88, and 552 million yuan in Q1-4 in '23, respectively, and net profit to mother of 1.62, 0.72, 0.82, and -49 billion yuan, respectively. Q4 is often a low season for ophthalmology. At the same time, due to the macroeconomic environment, the company's revenue declined month-on-month and lost money. The main reasons for the pressure on 24Q1 performance are: (1) the release of backlog demand spurred a high performance base in 23Q1, and an investment return of around 90 million; (2) the company's new hospitals are in the development period, and revenue growth is slowing down due to the macroeconomic environment, increasing the company's overall costs. 24Q1 gross margin was 40.54%, down 4.1pp year on year, and the management expense ratio was 15.05%, up 3.26pp year on year.

Profit forecasting and investment advice. The company's 24-year performance is expected to be weighed down by the high base and macroeconomic environment for the same period last year. The 24-26 revenue is expected to be 30.26, 35.07, and 4,073 billion yuan. Considering the steady expansion of the company's business scale while profitability is still climbing, the 24-year PS 4X is valued at a reasonable value of 80.89 yuan/share, giving it a “buy” rating.

Risk warning. Chain business model expansion risk, medical accident risk, and health insurance fee control risk.