Lepu Medical(SZ:300003)2024-05-08 23:32Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company experienced a decline in revenue and net profit in 2023 due to changes in the domestic medical policy environment, but there is a positive outlook for 2024 with a sequential improvement in performance [5][6] - The company’s revenue for 2023 was 7.98 billion yuan, a decrease of 25% year-on-year, and the net profit attributable to shareholders was 1.26 billion yuan, down 43% year-on-year [5][7] - The report forecasts a recovery in 2024 with expected revenue of 8.95 billion yuan and net profit of 1.89 billion yuan, representing a year-on-year growth of 12.2% and 50.4% respectively [7][8] Financial Summary - The company reported a gross margin of 64.24% in 2023, an increase from 62.46% in 2022 [5] - The sales expense ratio increased to 20.36% in 2023 from 19.17% in 2022, while the management expense ratio rose to 10.22% from 7.00% [5] - The R&D expense ratio also increased to 11.02% in 2023 from 9.02% in 2022 [5] Product Performance - The medical device segment reported revenue of 3.67 billion yuan in 2023, a decline of 37.5%, but excluding the in vitro diagnostic business, revenue grew by 6.7% [5] - The pharmaceutical segment generated revenue of 3.04 billion yuan, down 11.47% year-on-year, with formulations contributing 2.63 billion yuan and raw materials 411 million yuan [5] - The medical services and health management segment achieved revenue of 1.26 billion yuan, a decrease of 2.37% [5] R&D Progress - The company received regulatory approval for several innovative products, including the MemoSorb biodegradable occluder and various coronary intervention devices, expected to launch in 2024 [6]