Brief performance review

The company released its report for the third quarter of 2024. In the first three quarters, it achieved operating income of 0.191 billion yuan, an increase of 30.98% over the previous year; net profit to mother was 0.053 billion yuan, an increase of 107.68% over the previous year.

The third quarter achieved operating income of 0.069 billion yuan, up 14.70% year on year and 6.25% month on month; realized net profit of 20.41 million yuan, up 50.83% year on year and 17.00% month on month; realized net profit after deduction of 18.41 million yuan, up 44.96% year on year and 18.00% month on month.

Company operation analysis

The company's gross margin and net profit margin increased month-on-month in the third quarter. The company's gross profit margin for the first three quarters was 78.22%, down 2.8 percentage points from the previous year; of these, the gross profit margin for the third quarter was 77.09%, down 5.64 percentage points year on year, and up 0.39 percentage points from month to month. The company's net interest rate for the first three quarters was 27.65%, down 10.21 percentage points year on year; of these, net interest rate for the third quarter was 29.63%, up 3.51 percentage points year on year and 2.73 percentage points month on month.

The company's expense ratio improved year over year. The company's sales expense ratio for the first three quarters of 24 was 17.44%, down 8.89 percentage points year on year; management expenses ratio was 23.49%, up 0.88 percentage points year on year; R&D expenses ratio was 8.71%, down 3.33 percentage points year on year; and financial expenses ratio was -0.22%, down 0.39 percentage points year on year.

The 2024 Restricted Stock Incentive Plan is expected to have a positive effect on the company's business development.

In June, Maipu Medical released the “Guangzhou Maipu Regenerative Medicine Technology Co., Ltd. 2024 Restricted Stock Incentive Plan (Draft)”. The 2024 Restricted Stock Incentive Plan assesses the company's performance indicators on an annual basis during the 2024-2026 fiscal year to meet the performance assessment target as one of the conditions for the incentive target to belong to the current year. Among them, the target values for the company's revenue growth rate from 2024 to 2026 are 23.00%, 61.00%, and 103.00%, respectively, and the trigger values are 18.40%, 48.80%, and 82.40%, respectively. The 2024 restricted stock incentive assessment target has been raised compared to the 2023 restricted stock incentive assessment target. We expect the 2024 Restricted Stock Incentive Plan to have a positive effect on the company's business development.

Profit forecasting

The company's main products in 2023 were affected by volume procurement and dealer inventory removal, and the company's revenue growth rate slowed; negative factors were gradually eliminated with the implementation of volume procurement policies; PEEK craniomaxillofacial repair products are expected to continue to provide rapid growth in the short to medium term; the company's new product business is rapidly released, which is expected to become a new growth point for the company in the future. It is expected that the company's profitability will increase further in the future, and it is expected that the valuation will gradually be digested. We have raised the company's profit forecast.

The company's revenue side for 2024-2026 is expected to be 0.288 billion yuan, 0.388 billion yuan, and 529 million yuan respectively, with revenue growth rates of 24.75%, 34.72% and 36.34% respectively. Net profit to the mother is expected to be 0.071 billion yuan, 0.095 billion yuan and 128 million yuan respectively from 2024 to 2026, and net profit growth rates to mother are 74.80%, 33.50% and 34.02%, respectively. The current stock price corresponds to P /E was 43.66, 32.70, and 24.40 times, respectively, maintaining a “buy” rating.

Risk warning:

Volume procurement policy uncertainties, and product sales volume fell short of expectations.