Event: In 2023, Aibo Medical achieved revenue of 0.951 billion yuan, up 64.14 percent year-on-year, and achieved net profit of 0.304 billion yuan, up 30.63 percent year-on-year. 2024Q1 Aibo Medical achieved revenue of 0.31 billion yuan, up 63.55 YoY, and realized net profit of 0.103 billion yuan, up 31.26 YoY.

intraocular lens grew steadily and orthokeratology lens grew slowly: in 2023, the company's intraocular lens business achieved revenue of 0.5 billion yuan, up 41.67 year-on-year, accounting for 52.51 percent of revenue; The orthokeratology lens business reached 0.219 billion billion yuan, up 26.03 percent year on year and accounting for 23% of revenue. Defocus lens accelerated, with revenue up 247.32 percent year on year. With the gradual recovery of the market environment at the beginning of the year, the rapid growth of cataract surgery, the company's artificial lens sales increased simultaneously, the domestic annual sales volume exceeded one million pieces, while the international market also accelerated, overseas artificial lens revenue increased by 127.90 year-on-year. The corneal plastic mirror business has slowed down due to factors such as consumer degradation and increased competition. The defocusing lens is complementary to the orthokeratology lens, providing more choices for patients to meet different myopia prevention and control needs.

rapid release of new products: in 2023, the company's contact lens business realized revenue of 0.137 billion yuan, up 1504.78 year on year, accounting for 14.36. the company rapidly increased its production capacity and expanded the contact lens market through the acquisition of tianyan medicine, Fujian youkang and meiyue pupil. at present, the color film production line is at full capacity, and relying on the company's research and development advantages, the company continues to improve the production line efficiency.

research and development efforts have been strengthened and products under research are abundant: the company's total research and development investment in 2023 was 0.132 billion yuan, up 61.23 year on year. In 2023, the company's crystal eye artificial lens (PR) has been declared for registration, non-spherical three-focus astigmatism correction artificial lens, non-spherical depth of field (EDoF) artificial lens and other clinical projects accelerated, good progress.

investment advice: solid development of artificial crystals, rapid release of new products. We expect the company to achieve operating income of 13.77/18.65/2.391 billion yuan in 2024-2026, with a net profit of 3.91/4.94/0.617 billion yuan. The corresponding PE is 33.73/26.67/21.36 times, maintaining an "overweight" rating.

Risk Warning: Research and development progress is not as expected; Cataract surgery demand is not sustainable; Optometry demand is weak