JAFRON(SZ:300529) Southwest Securities·2024-04-29 02:33Investment Rating - The investment rating for the company is "Hold" [16] Core Views - The company reported a significant decline in revenue and net profit for 2023, with revenue at 1.92 billion yuan, down 22.8% year-on-year, and net profit attributable to shareholders at 440 million yuan, down 50.9% year-on-year. However, in Q1 2024, the company saw a revenue increase of 30% year-on-year to 740 million yuan and a net profit increase of 44.9% to 285 million yuan [1][11] - The company is undergoing internal restructuring and cost-cutting measures, which have started to show positive results, as evidenced by a net profit margin increase to 38.2% in Q1 2024 [1][11] - The company has developed a comprehensive product line in the nephrology sector, which includes three series of blood purification products, and has adjusted pricing strategies to enhance market competitiveness [1][11] - The company is actively expanding its overseas market presence, with its blood purification devices generating 230 million yuan in revenue, a 19.26% increase year-on-year [1][11] Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 1.92 billion yuan and a net profit of 440 million yuan, with a significant decline in both metrics compared to the previous year. In Q1 2024, revenue was 740 million yuan, showing a 30% increase year-on-year, while net profit reached 285 million yuan, up 44.9% [1][11] - The company’s gross margin for Q1 2024 was 78.7%, slightly down due to price reductions in its HA130 product line [1][11] Product Development - The company has established a three-product system in the nephrology field, including HA series, KHA series, and pHA series blood purification devices. The HA series has been in clinical use for 20 years and is widely adopted across over 6000 hospitals [1][11] - The KHA series, aimed at uremia treatment, saw a revenue increase of 79.5% in 2023, while the pHA series was launched in November 2023 and is currently undergoing trials in multiple hospitals [1][11] Market Expansion - The company’s blood purification equipment sales reached 230 million yuan, with the DX-10 blood purification machine being a key product, generating 227 million yuan in revenue, a 22.64% increase year-on-year. The DX-10 is now used in approximately 1800 hospitals nationwide [1][11] - The company has successfully entered 92 countries with its products, and 13 countries have included its products in their medical insurance systems [1][11] Profit Forecast - The company forecasts net profits of 800 million yuan, 1.03 billion yuan, and 1.31 billion yuan for 2024, 2025, and 2026, respectively, indicating a recovery trajectory following the restructuring efforts [1][11]