The company's 23-year performance was in line with expectations, and net profit to mother was drastically reduced. According to the company's performance report, the company expects to achieve total operating income of 343 million yuan (YOY +78.1%) and net profit to mother of -49 million yuan in 23, a loss of 113 million yuan compared to the same period last year. The 23Q4 Company is expected to achieve operating income of 98 million yuan (YOY +262.96%) and net profit to mother of -0.07 billion yuan, a loss of 46 million yuan compared to the same period last year. The company's performance was in line with expectations.

The revenue growth rate of the two core businesses was significant, and the sales/R&D expenses side declined year-on-year. The company's overall performance decreased significantly compared to the same period of the previous year, mainly due to a sharp increase in operating income. Among them, revenue from coronary and neurological intervention businesses increased 99.1% and 60.59%, respectively; operating costs did not change in the same proportion as operating income; unit prices of newly collected coronary stent products fell sharply and the company's production capacity was not fully utilized; sales expenses increased year over year, but the increase was less than the increase in operating income, and combined with factors such as a year-on-year decline in management expenses and R&D expenses.

HT Supreme? Overseas approvals have been obtained one after another, and the company is actively developing overseas markets. Overseas, according to the company's voluntary disclosure announcement, the company's HT Supreme? The drug-eluting stent system was approved for marketing in France (included in the French health insurance catalogue), India, Uzbekistan, Bangladesh, Brazil, Hong Kong, Malaysia, etc. in the second half of '23, and also obtained MDR certification in the European Union.

Profit forecasting and investment advice. The corresponding revenue for 23-25 is estimated to be 3.43, 5.20, and 750 million yuan, respectively. Taking into account the company's industry position and business growth, the company was given a 24-year PS10X (considering that some of the company's products are currently in the development and new product introduction stage, so the PS valuation is more reasonable), with a corresponding reasonable value of 12.69 yuan/share, giving it a “buy” rating.

Risk warning. Procurement policy risks, new product launches falling short of expectations, and risk of continued losses.