Investment Rating - The report maintains an "OUTPERFORM" rating for the company, with a target price of HKD 103.50, indicating a potential upside from the current price of HKD 75.10 [3][5]. Core Insights - The company has successfully established a second growth curve through international expansion, achieving a total of approximately 245,000 invisible orthodontic cases in 2023, a 33% increase year-on-year. Domestic cases accounted for 212,000 (+15%), while international cases reached 33,000, representing 13% of the total [8][9]. - The company is focusing on penetrating third and fourth-tier cities in China, leading to a steady improvement in domestic business, with revenue of approximately CNY 1.476 billion in 2023, reflecting a 16% increase [9][10]. - The overall gross margin improved to 62% in 2023, driven by advancements in manufacturing processes, while the domestic invisible orthodontic solutions achieved a gross margin of about 66% [10][11]. - The company anticipates revenue growth of 19% in 2024, reaching CNY 1.761 billion, and expects adjusted net profit to grow by 1% to CNY 180 million [12]. Financial Performance Summary - In 2023, the company reported a net profit attributable to shareholders of CNY 53 million, a decrease of 75%, while the adjusted net profit was approximately CNY 179 million, down 16% [10][11]. - The domestic business generated an adjusted profit of about CNY 256 million, with a profit margin of 19%, while the international business reported an adjusted loss of approximately CNY 211 million [10][11]. - The company maintained a strong cash flow position, with a net operating cash flow of approximately CNY 166 million and cash and cash equivalents at the end of the year amounting to approximately CNY 2.69 billion [11][12].
出海逻辑强化第二增长曲线，差异化产品组合及医学服务优势突出