Weiwai's academic activities are in full swing. The development of consumables+equipment solutions can be expected, and the “buy” rating is maintained
According to the official account of Mindray Minimally Invasive Surgery, the company is actively implementing a high-consumption+equipment strategy and carrying out large-scale academic activities for energy devices (energy platform equipment+ultrasound consumables). The market is large enough, and there is still a lot of room for domestic replacement, and there are few manufacturers with international competitiveness. The company focuses on hard mirror equipment products with obvious advantages (third in domestic market share), and is expected to grow by more than 30% through self-development or mergers and acquisitions. It is expected to grow by more than 30% throughout 2023, and is expected to become a rare domestic giant squeezing foreign capital Of the market space One of the players. Considering that the company continues to benefit from new medical infrastructure and continues to break through high-end hospitals at home and abroad through innovative products. Although domestic medical compliance is still ongoing, high-end technology and “Sanrui” ecological and digital intelligence solutions continue to be implemented. We maintain 2024-2025 and add profit forecasts for 2026. The estimated net profit to the mother is 139.1/167.3/19.9 billion yuan, and EPS is 11.5/13.8/16.5 yuan respectively. The current stock price corresponds to PE 25.8/21.5/18.0, respectively Double, maintaining a “buy” rating.
The results for the full year of 2023 are in line with expectations. The three major business lines performed more steadily. The company achieved revenue of 34.93 billion yuan (yoy +15.0%) and net profit of 11.58 billion yuan (yoy +20.6%) in 2023.
After deducting non-net profit of 11.43 billion yuan (yoy +20.0%), the gross profit margin of the main business was 66.2% (+2.01pct).
By product, life information and support revenue was 15.25 billion yuan (yoy +13.8%), gross profit margin 66.8% (+0.45pct); in vitro diagnosis revenue of 12.42 billion yuan (yoy +21.1%), gross profit margin 64.3% (+3.95pct); medical imaging revenue of 7.03 billion yuan (yoy +8.8%), gross profit margin 69.1% (+2.70pct). By region, domestic revenue was 21.38 billion (yoy +14.54%), overseas revenue of 13.55 billion yuan (yoy +15.83%), of which the overseas in vitro diagnostic business had a compound growth rate of more than 30% for two consecutive years; by cost, sales expenses ratio 16.3% (+0.52pct), management expenses rate 4.36% (+0.01pct), R&D expenses rate 9.83% (+0.21pct), overall cost rate is stable and manageable.
2024Q1 achieved steady growth under a high base. The 2024 full-year growth target can be expected to generate revenue of 9.37 billion yuan (+12.06%) in 2024Q1, with an overall increase of nearly 30% in the international market and more than 30% in developing countries, achieving net profit of 3.16 billion yuan (yoy +22.90%), after deducting non-net profit of 3.04 billion yuan (yoy +20.08%). Although 2023H1 domestic emergency procurement boosted the company's base, 2023H2's base was significantly reduced due to industry rectification. The company is expected to achieve its annual growth target through breakthroughs in the high-end customer base, increased market share, implementation of digital intelligence strategies, and implementation of new medical infrastructure and equipment updates.
The company has completed the construction of the “equipment+IT+AI” system, and will continue to transform and upgrade to a digital intelligence ecosystem solution provider through “Sanrui” ecosystem integration and innovation, combining big data and artificial intelligence to provide medical institutions with overall digital intelligence solutions, and can truly use technical means to solve clinical pain points, and development at home and abroad can be expected.
Risk warning: Product promotion falls short of expectations, risk of policy changes, and equipment collection affects gross profit margin.