Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 16.0, indicating a potential upside of 68% from the current price [4]. Core Insights - The company's revenue growth for 2023 slightly exceeded expectations, with a year-on-year increase of 58% to RMB 528 million, surpassing the guidance of over RMB 500 million [1][2]. - The gross margin experienced a slight decline of 3.5 percentage points to 72.9% due to price reductions from centralized procurement, but the company expects to improve its net profit margin to approximately 14% by 2025 through scale effects and operational efficiency [1][2]. - The company achieved its first profit under adjusted net income, reporting RMB 7.03 million, compared to a net loss of RMB 78.73 million under IFRS [1][2]. Revenue and Profit Forecast - The company forecasts a revenue increase of 43% in 2024, reaching RMB 756 million, with a net profit of RMB 72.1 million, resulting in a net profit margin of 9.5% [2][3]. - The projected compound annual growth rate (CAGR) for revenue from 2023 to 2026 is estimated at 38% [2]. Product Approval and Market Position - The company anticipates the approval of two key products, the mesh stent and peripheral vascular sutures, within 2024, which are expected to drive further revenue growth [1][2]. - The company’s neurointervention business saw a revenue increase of 64% in 2023, with core products maintaining a leading market share [1][2]. Market and Competitive Landscape - The company’s core products, including the "Jiaolong" thrombectomy stent and "Yin She" intracranial support catheter, were successfully selected in the Beijing-Tianjin-Hebei centralized procurement, which is expected to enhance market share [1][2]. - The company has entered a strategic partnership with Avinger for peripheral intervention products, with expected approval in 2025 and projected revenue contribution of at least RMB 20 million in 2026 [2]. Financial Metrics - The report provides a financial outlook with projected revenues and net profits for the years 2024 to 2026, indicating a recovery trajectory with net profits expected to reach RMB 237 million by 2026 [3][8]. - The price-to-sales (P/S) ratio is projected to decrease from 5.5x in 2023 to 2.1x in 2026, reflecting anticipated growth in revenue [3][9].
2023年收入增速略超预期，密网支架有望年内获批