Incident: The company released its 2023 performance report. In 2023, the company is expected to achieve operating income of 462 million yuan, a year-on-year increase of 43.72%, achieve net profit of 136 million yuan, an increase of 45.41% over the previous year, and achieve net profit without return to mother of 122 million yuan, an increase of 58.9% over the previous year. Excluding the impact of share payments and income tax, the company expects to achieve net profit of 153 million yuan in 2023, an increase of 64.02% over the previous year.
On a quarterly basis, according to the announcement, the company is expected to achieve operating income of 130 million yuan in the fourth quarter of 2023, an increase of 24.02% over the previous year, achieve net profit of 34 million yuan, an increase of 7.60% over the previous year, and achieve net profit without return to mother of 31 million yuan, an increase of 5.87% over the previous year. The company's revenue grew rapidly in a single quarter. It is expected that demand for downstream terminals will gradually recover after policy recovery, and the core series of products represented by magnetic stimulation will continue to be released. The profit growth rate in a single quarter fluctuated. It is expected to be mainly affected by amortization of equity incentives. For example, the company's net profit for the fourth quarter of 2023 is expected to reach 42 million yuan, an increase of about 31.11% year-on-year, after deducting non-net profit of 38 million yuan, an increase of about 31.81% year-on-year.
Multiple series of new product iterations+marketing network reform, 2023 results are close to the median forecast. The company continues to accelerate the development of advanced technologies in the fields of magnetic stimulation, electrical stimulation, electrophysiology, rehabilitation robots, and laser radiofrequency, and improve the product layout. In 2023, the new generation of pelvic floor functional magnets, transcranial magnetism, group biofeedback devices and other products were iteratively upgraded. The product market competitiveness was significantly enhanced, and the business scale and market share of core products represented by magnetic stimulation grew rapidly. At the same time, after completing optimization and adjustments, the overall team execution and terminal coverage were further improved, covering more than 10,000 terminal medical and professional institutions. Demand in the Canadian rehabilitation market continues to recover, jointly driving the company's performance to achieve high growth.
Rehabilitation specialty products continue to be abundant, and the optoelectronic medical and aesthetic business can be expected to expand. The company continues to increase the layout of rehabilitation specialty core products and enrich the company's rehabilitation specialty product matrix. Currently, it has launched a “rehabilitation ring” overall solution for the rehabilitation department of tertiary hospitals. In 2024, the company is expected to launch more high-quality rehabilitation sub-specialty construction solutions that meet clinical needs to promote the vigorous development of the company's basic rehabilitation specialty business. At the same time, in the medical and aesthetic field, the company focuses on the active layout of clinically effective and registered compliant products. Currently, plastic magnetic products have obtained FDA certification and domestic medical device registration certificates. The picosecond laser clinical trials have all been completed. Good. New products such as radiofrequency anti-aging and radiofrequency liposolysis are being promoted in an orderly manner, and it is expected that they will be launched quickly in the future.
Profit forecast and investment suggestions: Based on financial data, we adjust profit forecasts, taking into account post-pandemic recovery, continued rapid magnetic growth, and the pace of new product launches. We expect the company's 2023-2025 revenue to be 4.62, 5.81, and 714 million yuan, up 44%, 26% and 23% year-on-year (4.83, 6.01, 741 million yuan before adjustments); net profit from 2023-2025 to the mother is estimated to be 1.36, 1.80, and 235 million yuan, up 45%, 32%, and 31% year-on-year (1.42 million yuan before adjustment, 1.85 billion, 242 million yuan). The company's current stock price corresponds to 2023-2025 PE about 33/25/19 times. Considering that the company is one of the leaders in pelvic floor rehabilitation, it is expected that it will continue to expand its leading edge with magnetoelectric partnerships. At the same time, it is expected to benefit from the continuous increase in domestic rehabilitation needs in the long term and maintain a “buy” rating.
Risk warning events: Risk of R&D failure, policy risk, market competition risk. Public data used in research reports may be delayed or not updated in a timely manner.