Event description

On October 25, the company released the performance report for the third quarter of 2024, and the company's revenue in the first three quarters of 2024 was 501 million yuan, a year-on-year increase of 16.79%; the net profit attributable to the parent company was 37.303 million yuan, a year-on-year decrease of 17.45%; The net profit after deducting non-attributable to the parent company was 14.8129 million yuan, a year-on-year decrease of 55.24%.

Event Comment

The performance is in line with expectations, and the procurement is expected to continue to improve in the fourth quarter. In the third quarter of 2024, the company's revenue was 147 million yuan, a year-on-year increase of 5.39%; the net profit attributable to the parent company was 32 million yuan, a year-on-year increase of 345.17%; The net profit after deducting non-attributable to the parent company was 16 million yuan, a year-on-year increase of 378.59%. The significant year-on-year increase in net profit attributable to the parent company was mainly due to the Company's expectation that the operating results in 2024 would not meet the vesting conditions of restricted shares, and the reversal of the accrued share-based payment expenses would be reversed. In the fourth quarter, with the advancement of the equipment renewal policy, bidding and procurement are expected to resume, and the company's performance is expected to continue to grow at a high rate.

Continue to launch new products and iteratively optimize performance. In March 2024, the company successively launched electronic percutaneous choledoscope and electronic cystoscope, entering the field of hepatobiliary surgery and urology from the fields of gastroenterology and respiratory. In May 2024, the company released an electronic ureteronephroscope, which can enter the narrow ureter with an ultra-fine outer diameter to help in the treatment of urinary stones. In October 2024, the company released the integrated AQ-150 Series 4K ultra-high-definition endoscopy system and AQ-120 Series endoscope system to realize the integration of light source and host, and further improve the safety, efficiency and intelligence of endoscopic diagnosis and treatment.

Adhere to deep R&D and innovation. The company actively gives full play to its business advantages in R&D, technology, quality and other aspects, continuously polishes and upgrades its products, continuously and stably provides customers with satisfactory endoscopic solutions, and has won more clinical recognition. In August 2024, the company released the following new products of the year: 1) a hyperspectral intelligent imaging platform, covering 26 narrow-band light bands to distinguish blood vessels and tissues at different depths; 2) 640x endoscope to improve biopsy accuracy; 3) 140x optical magnification endoscope, which increases the magnification from 100 times to 140 times, and accurately captures the changes and states of diseased tissues; 4) The 5.4mm ultra-fine gastroscope can be examined through the nasal cavity, which has the advantages of no need for general anesthesia and fewer complications than ordinary endoscopes; 5) 4K bifocal endoscope, close focus mode up to 65x, can quickly judge the background mucosal state.

Optimistic about the company's future development, we expect the company's revenue in 2024-2026 to be 8.14, 10.01 and 1.251 billion yuan respectively, and the net profit attributable to the parent company to be 0.58, 0.75 and 97 million yuan respectively, and the current stock price corresponds to 124, 97 and 74 times PE in 2024-2026 respectively, maintaining a "buy" rating.



Risk Warning 1: AQ-300 sales are lower than expected;

2. Risk of foreign exchange fluctuations.