AK MEDICAL(1789.HK):SOLID GROWTH DRIVEN BY INCREASING NON-VBP SALES
AK MEDICAL(1789.HK):SOLID GROWTH DRIVEN BY INCREASING NON-VBP SALES
1H23 earnings was in line with CMBI and consensus estimates. AK Medical reported 1H23 revenue of RMB648.7mn, up 22.1% YoY, primarily driven by the significant revenue growth of knee replacement implants and non-VBP products.Gross profit was RMB338.5mn, up 9.8% YoY. Gross profit margin fell 1.8 ppts to 61.9% (vs. 63.7% in 1H22) due to the implementation of national VBP of joint implants since April 2022. Attributable net profit was RMB132.6mn, up 5.2% YoY, and the attributable net profit margin dropped by 3.3 ppts to 20.4% in 1H23 (vs. 23.7% in 1H22) mainly due to the lower GPM and increased administrative expense rate (11.6% in 1H23 vs. 10.3% in 1H22).
23年上半年的收益与招银国际指数和市场普遍预期一致。AK Medical报告称，23年上半年收入为人民币6.487亿元，同比增长22.1％，这主要是由于膝关节置换植入物和非VBP产品的收入大幅增长。毛利为3.385亿元人民币，同比增长9.8％。毛利率下降1.8个百分点至61.9％（上半年为63.7％），这是由于自2022年4月以来实施了全国关节植入物VBP。应占净利润为人民币1.326亿元，同比增长5.2％，应占净利润率下降3.3个百分点至20.4％（上半年为23.7％），这主要是由于GPM降低和管理费用率上升（23年上半年为11.6％，而22年上半年为10.3％）。
Robust growth in knee replacement implants. Thanks to the sustained market share gain from foreign brands after the national joint VBP and the orthopedic surgery demand recovery, sales volume of the primary knee system increased by 107% YoY. Sales of knee unicondyle replacement system, which is a new partial knee product approved in July 2022, reached RMB33.8mn in 1H23. As a result, AK Medical's revenue from knee replacement implants surged by 64.7% YoY to RMB211.0mn in 1H23.
膝关节置换植入物增长强劲。得益于国外品牌在全国关节VBP之后市场份额的持续增长以及骨科手术需求的恢复，初级膝盖系统的销量同比增长了107％。膝盖单节置换系统是2022年7月批准的新型膝关节局部产品，其销售额在23年上半年达到3,380万元人民币。因此，AK Medical的膝关节置换植入物收入在23年上半年同比激增64.7％，至2.11亿元人民币。
Moreover, AK Medical continued to penetrate into higher-tier hospitals.Approximately 16% of the implant volumes occurred in provincial hospitals in 1H23, up from 10% in 1H22. We expect this trend will further drive the strong sales growth of knee replacement implants in coming years.
此外，AK Medical继续渗透到更高级别的医院。大约16％的植入量发生在23年上半年的省级医院，高于22年上半年的10％。我们预计，这一趋势将进一步推动未来几年膝关节置换植入物的强劲销售增长。
Improved revenue mix with increasing proportion of revenue from high-margin non-VBP products. AK Medical has a comprehensive orthopedic implants portfolios including various products that are safe from VBP such as revision and reconstruction products, 3D-printed spinal implants, partial knee products and customized products (ICOS) etc. The domestic sales of revision products grew by over 60% YoY in 1H23, contributing 26% of the Company's total domestic revenue. The ICOS products realized RMB27.8mn of sales with four NMPA-approved 3D- printing customized products and 62 customized products filings with cooperating hospitals, up 31.5% YoY in 1H23. As a result, 48% of the domestic revenue was from the non-VBP products in 1H23, compared to approximately 36% in 1H22. Besides, the overseas market continued strong growth momentum and the overseas revenue increased by 78.3% YoY to RMB113.5mn in 1H23. Thus, we think 56.8% of AK Medical's total revenue was not VBP-relevant while contributed higher margin than VBP products.
收入组合得到改善，来自高利润非VBP产品的收入比例不断提高。AK Medical拥有全面的骨科植入物产品组合，包括各种免受VBP影响的产品，例如修复和重建产品、3D打印脊柱植入物、部分膝盖产品和定制产品（ICOS）等。23年上半年，修复产品的国内销售同比增长60％以上，占公司国内总收入的26％。ICOS产品实现了2780万元人民币的销售额，其中四款获得NMPA批准的3D打印定制产品以及向合作医院提交的62份定制产品备案，在23年上半年同比增长31.5％。因此，在23年上半年，48％的国内收入来自非VBP产品，而22年上半年的这一比例约为36％。此外，海外市场继续保持强劲增长势头，海外收入同比增长78.3％，至23年上半年人民币1.135亿元。因此，我们认为AK Medical总收入中有56.8％与VBP无关，但贡献的利润率高于VBP产品。
Valuation/Key risks. To factor in the challenging business environment in China, we revised our TP to HK$8.46 based on a 9-year DCF model (WACC: 11.08%, terminal growth rate: 2.0%).
估值/关键风险。考虑到中国充满挑战的商业环境，我们将目标价调整为8.46港元，基于9年期DCF模型（WACC：11.08％，终端增长率：2.0％）。
译文内容由第三方软件翻译。