Description of the event
The company's revenue in 2023 was 678 million yuan, up 52.29% year on year; net profit to mother was about 58 million yuan, up 167.04% year on year), and net profit to mother after excluding share payments was 87 million yuan. In the first quarter of 2024, the company's revenue was 169 million yuan, up 34.91% year on year, and net profit to mother was 2.7595 million yuan, down 83.32% year on year; net profit to mother after excluding share payments was 24.5567 million yuan, up 24.15% year on year.
Incident comments
The 2023 results are in line with expectations, and the clinical phase of AQ-300 continues to be rapidly deployed. The company's revenue increased by more than 50% in 2023, including 622 million endoscopic equipment, accounting for 91.76%, and 42.5724 million yuan for endoscopic diagnosis and treatment consumables, accounting for 6.28%; revenue from endoscopy maintenance services was 12.3497 million yuan, accounting for 1.82%; mainly due to the rapid launch of the new product AQ-300, the number of units installed (including winning bids) of the company's middle and high-end models in tertiary hospitals was 73, and the number of consoles and lenses installed (including winning bids) in tertiary hospitals was 96 and 316, respectively. Furthermore, the company has carried out comprehensive in-depth cooperation with Nanjing Gulou Hospital, Beijing Friendship Hospital, Hangzhou First People's Hospital, Changhai Hospital, and many other grade III hospitals.
Open up a second growth curve in overseas markets. The company continues to lay out overseas marketing networks, and its products have now entered developed markets such as Germany, the United Kingdom, and South Korea. In the Asian market, the company has adopted a high-ranking strategy. In the European market, on the one hand, the company actively promotes marketing to continuously expand its brand influence, and on the other hand, it promotes models based on mid-range and low-end marketing. In the future, as the marketing system and brand influence are built, AQ-300's overseas market share may continue to increase.
We are deeply involved in R&D and innovation, and clinical recognition continues to increase. The company has strengthened R&D investment. 2024Q1 invests 26% of R&D expenses in product development and innovation, actively exploits various business advantages in R&D, technology, quality, etc., continuously refines and upgrades products, continuously and steadily provides customers with satisfactory endoscopic solutions, and has received more clinical recognition. Currently, the company has a complete product line, covering electronic digestive endoscopy, otolaryngoscopy, bronchoscopy, endoscopic diagnosis and treatment supplies, etc., and is used in clinical departments such as gastroenterology, respiratory medicine, otolaryngology, gynecology, and emergency departments.
Equity incentives demonstrate the company's confidence. Recently, the company announced equity incentives. The performance assessment target for 2024-2026 was no less than 9.9, 1.4 billion, and 2 billion revenue, respectively; net profit was not less than 1.2, 180, and 270 million yuan, respectively. The high performance growth showed management's confidence in future operations.
Optimistic about the company's future development and maintaining a “buy” rating. We expect the company's net profit to be 1.23, 1.82, and 269 million yuan respectively in 2024-2026, and the current stock price corresponding to 2024-2026 PE is 54, 37, and 25 times, respectively. Maintain a “buy” rating.
Risk warning
1. AQ-300 sales fell short of expectations;
2. The risk of foreign exchange fluctuations.