In the first three quarters, the company achieved revenue of 6.01 billion yuan, an increase of-21.4% over the same period last year, and a net profit of 2.15 billion yuan, an increase of 71.8% over the same period last year. From the perspective of Q3 alone, the company achieved an income of 1.74 billion yuan, an increase of-29.8% over the same period last year, a net profit of 1.47 billion yuan, an increase of 310.2% over the same period last year, and an one-time income from the company's urban transformation project, deducting 71 million yuan from non-parent net profit, or-78.4% from the same period last year.
Medical consumables: the demand for infection protection products has decreased and the income has declined, and conventional medical consumables have developed steadily. The operating income of medical consumables in the first three quarters was 3.002 billion yuan,-38.32% compared with the same period last year, mainly affected by the decline in demand for infection protection products. The company's conventional medical consumables products developed steadily, with a business income of 2.178 billion yuan, an increase of 25.93% over the same period last year. In terms of channels, domestic B-end (domestic hospitals and other) / foreign sales / C-end sales (e-commerce + drugstores) account for 38.07%, 35.45% and 26.48%, respectively.
Healthy consumer goods: keep steady in the third quarter. In the first three quarters of 2023, the cumulative operating income was 2.96 billion yuan, an increase of 9.22 percent over the same period last year, and that of Q3 alone was 900 million yuan, an increase of 2 percent over the same period last year. The sales of the company's core explosive dry and wet cotton towels have increased steadily, with a good growth rate of adult clothing and other textile consumer goods in textile products. In terms of channels, the cumulative business income of offline stores maintained double-digit growth, while online channels maintained high single-digit growth.
The company's gross profit margin has declined, and profitability is expected to pick up with the elimination of short-term factors. 1) Gross profit margin: Q3 company gross profit margin is 47.0%, year-on-year + 1.1pct. On the one hand, the rise in cotton purchase prices affects the gross profit margin of healthy consumption, on the other hand, the clearance of medical supplies inventory also has an impact on the gross profit margin of medical consumables plate. If the one-time effect is excluded, it is expected that Q3 gross profit margin will be higher than Q2. 2) expense rate: the sales / management / R & D expense rate of 23Q3 is 27.8%, 8.1% and 4.3%, respectively, and + 9.7pct/+1.9pct/-1.2pct compared with the same period last year. 3) deducting the non-return net interest rate: 23Q3 deducts the non-return net interest rate of 4.1%. 4) Asset disposal income: the asset disposal income of 23Q3 Company is 1.597 billion yuan, which is mainly brought to the urban renewal and renovation project.
Looking to the future, the company's conventional medical consumables products are expected to maintain steady development, and the healthy consumer goods sector will also focus on store management improvement on the basis of high-quality products, and is expected to continue to improve in the future.
According to the three-quarter report, taking into account the sharp decline in demand for infection protection products, further inventory clearance in the medical sector and the impact of one-time compensation, we adjust our profit forecast to forecast a net return profit of 22.5 pounds in 23-25 years. 1.36 billion yuan (originally 28.2 pounds, 17.1 pounds, 1.93 billion yuan), with reference to comparable companies, give a valuation of 22 times PE in 2024, corresponding to the target price of 44.88 yuan, maintaining the "overweight" rating.
Risk tips: intensified competition in the industry, weakening terminal consumer demand, sustained price fluctuations, etc.