Events:
On August 23, the company released its semi-annual report of 2022. In 2022, H1 realized business income of 297 million yuan, an increase of 13.68% over the same period last year. The net profit of returning to its mother was 77 million yuan, an increase of 8.79% over the same period last year. The net profit of deducting non-return was 72 million yuan, an increase of 35.62% over the same period last year. The single-quarter operating income of Q2 in 2022 was 167 million yuan, an increase of 17.06% over the same period last year, and the net profit was 43 million yuan, an increase of 7.34% over the same period last year. The net profit of non-parent was 41 million yuan, an increase of 37.43% over the same period last year.
Comments:
Q2 business is steadily rising, and sales expansion promotes the growth of net profit. H1's operating income in 2022 was 297 million yuan, an increase of 13.68% over the same period last year. This is mainly due to the rising application of orthopedic spinal implant consumables, ultrasonic bone knives, ultrasonic hemostatic knives and trauma implant consumables, and the downstream market demand continues to rise. The 5.09% increase in sales expenses compared with the same period last year is the reason for the company to strengthen sales expansion and further promote the sinking of channels; management expenses increased by 11.93% year-on-year, mainly due to the greater pressure on production and logistics during the epidemic; R & D expenses increased by 19.22% year-on-year, reflecting the company's emphasis on innovation and R & D. At the same time, the company's lean production cost control effect further appears, with the company's operating income continues to grow and the future recovery of the epidemic, the company's profitability is expected to be further enhanced.
A number of products have been registered and approved by the State Drug Administration, innovative research and development to enhance the competitiveness of H1 in 2022, the company's new "posterior spinal internal fixation system", titanium alloy wire anchor products, "titanium plate fixation interbody fusion system" and "vertebral fusion cage" have been registered and approved by the State Drug Administration. The product includes a variety of therapeutic innovative components that provide more advanced surgical treatments for patients with complex spinal deformities, spinal degenerative spondylolisthesis and spinal fractures, and reduce the incidence of surgical complications; and anterior cervical fixation and fusion for degenerative intervertebral disc diseases. and fusion of cervical and thoracolumbar vertebrae. The approval of a series of new products has further enhanced the company's market competitiveness in the spinal orthopaedics industry and maintained a leading market share.
Shuimu canopy authorized Medtronic PLC exclusive distribution, and the market share is expected to further increase on May 24, the company's holding subsidiary Mu Tianpeng authorized Medtronic PLC to exclusively promote, market, sell and distribute all authorized products in Chinese mainland area, the authorized products are ultrasonic bone knife equipment FD880A, XD880A and their supporting knives and other consumables. This cooperation will further promote the admission and promotion of ultrasonic bone knife products nationwide, enhance the brand recognition, market competitiveness and market share of the products, and promote the rapid development of Shuimu canopy business. to achieve the goal of "simplification of complex surgery, standardization of simple surgery", and further promote the high-quality development of orthopaedics in China.
Profit Forecast: we estimate that the company's operating income from 2022 to 2024 will be RMB1.270.554 billion respectively, and the net profit of its parent will be RMB2.120.04Universe RMB396m, maintaining the "buy" rating.
Risk hint: the risk that the progress of product research and development is not as expected, the sales and promotion of products is not as expected, and the core products fail to win the bid in volume procurement.