occurrences
Pumen Technology released its 2024 semi-annual report. 24H1 achieved revenue of 0.59 billion yuan/ +5.64%, net profit due to mother 0.172 billion/ +27.78%, net profit excluding non-return to mother 0.163 billion/ +29.16%, and non-recurring profit and loss of 0.009 billion yuan, mainly from government subsidies. Q2 In a single quarter, the company achieved revenue of 0.284 billion yuan/ +1.27%, net profit attributable to mother 0.065 billion yuan/ +39.33%, after deducting non-attributable net profit of 0.06 billion yuan/ +37.86%.
Comment:
The volume of medical and aesthetic instruments and IVD reagents increased, and revenue continued to grow. 2024H1 achieved revenue of 0.59 billion yuan/ +5.64%. By product: 1) Treatment and rehabilitation revenue 0.114 billion/ -31.96%/accounting for 19.35%, due to last year's high base and this year's external environment, etc., clinical medical products are expected to be temporarily under pressure. In addition, sales of dermatological and aesthetic devices are gradually increasing; 2) In vitro diagnostic revenue is 0.468 billion/ +21.67%/accounting for 79.38%, of which 0.319 billion/ +19.36% in China and 0.149 billions/ +26.91% internationally, mainly instruments Sales and installed capacity drive reagent sales; 3) Other revenue 0.008 billion/ +29.71%/accounting for 1.27%. By region: 1) Domestic revenue 0.429 billions/ +1.58%/accounting for 72.74%; 2) Foreign revenue 0.161 billions/ +18.26%/accounting for 27.16%.
Costs continue to be reduced and efficiency increased, and the sales expense ratio has declined markedly. 2024H1 company period expense ratio 36.23% /-2.83pct, of which: 1) sales expenses 0.1 billion/ -8.69%, sales expense ratio 16.97% /-2.66pct; 2) management expenses 0.037 billion/ +17.42%, management expense ratio 6.19% /+0.62pct; 3) R&D expenses 0.099 billion/ +1.43%, R&D expenses rate 16.74% /-0.69pct; 4) financial expenses -0.022 billion, financial expense ratio -3.67% /-0.10pct. Q2 Single quarter: Period expense ratio 46.56% /-2.18pct, with sales expense ratio 21.46% /-4.26pct, management expense ratio 7.50% /+1.22pct, R&D expense ratio 21.88% /-1.17pct, financial expense ratio -4.28% /+2.03pct. The company is steadily implementing cost reduction and efficiency, and the sales expense ratio has declined. It is expected that the overall cost ratio will remain stable in the future.
Investment suggestions: Based on R&D and innovation, the company continuously strengthens product competitiveness, and promotes the steady development of various business lines in combination with a perfect domestic and foreign marketing system. Taking into account increased market competition and adjusted profit forecasts, revenue for 2024-2026 is expected to be 1.345 billion/1.686 billion/2.093 billion, and net profit to mother is 0.411 billion/0.51 billion/0.634 billion, respectively, and corresponding PE is 14 times /11 times/9 times, respectively. Maintain a “buy” rating.
Risk warning: Market competition intensifies; industry regulations are becoming stricter; new product performance falls short of expectations; performance forecasts and valuation judgments fall short of expectations.