Weisi Medical (688580): continue to iterate over traditional rehabilitation equipment and explore emerging fields
Event: The company released the 2023 annual report and the first quarter report of 2024. In 2023, it realized an operating revenue of 462 million yuan (+43.72%), a net profit attributable to the parent company of 136 million yuan (+45.23%), and a net profit of 122 million yuan (+58.93%) not attributable to the parent company; In 24Q1, the operating revenue was 87.67 million yuan (-8.24%), the net profit attributable to the parent company was 21.75 million yuan (-27.69%), and the net profit not attributable to the parent company was 19.21 million yuan (-27.42%).
Comments:
In the field of pelvic floor and health care, pelvic floor electrical stimulation products have been relatively saturated at present, with a high penetration rate, especially in public hospitals. In 2023, the revenue of electrical stimulation products will increase by 6.80%. The penetration of pelvic floor magnetism in general hospitals has just begun, and it is expected to continue to grow under the promotion of "magnetoelectricity combination". In 2023, the second-generation pelvic floor functional magnetic products will be successfully certified and launched, and will effectively integrate biofeedback and passive stimulation, which is expected to create the third product revolution in the field of pelvic floor rehabilitation treatment. The company will combine pelvic floor rehabilitation and light medical beauty projects in women's health related fields to build a comprehensive solution covering the whole life cycle of women.
In the field of mental rehabilitation, the company launched transcranial magnetic stimulator in 2016, and successfully carried out transcranial electrical stimulator cooperation in 23M8. In addition, the group biofeedback technology will complete the update iteration in 2022, further improving the market competitiveness, which will increase the revenue of electrophysiological products by 30.67% in 2023. In the field of neural rehabilitation, the second-generation transcranial magnetic stimulator (special for rehabilitation) can provide an international cutting-edge non-invasive neuromodulation treatment method for neural rehabilitation. The company continues to enrich the company's specialized rehabilitation product matrix. At present, the overall solution of "rehabilitation environment" has been launched for the rehabilitation department of tertiary hospitals.
The company's sports rehabilitation robot product line meets the needs of intelligent and standardized rehabilitation of neural rehabilitation. The first generation products have all completed the process of obtaining evidence, and initially formed a sports rehabilitation robot product matrix covering the full cycle rehabilitation assessment and training of the upper and lower limbs of the human body. In addition to consolidating the traditional rehabilitation medical equipment products, the company has grown rapidly and entered the laser RF track, with a comprehensive layout of shaping magnetic, picosecond laser and RF. As of 24M4, shaping magnetic products of the company have obtained FDA certification and domestic medical equipment registration certificate; The clinical trial of picosecond laser products was completed at the beginning of the year; The RF field has the layout of female pelvic floor privacy, anti-aging, body shaping and fat reduction. In 2023, the company's high-frequency cautery instrument for pelvic floor privacy has been put on the market, and the other two products are in the pre clinical preparation stage.
Profit forecast. We expect the net profit attributable to the parent company from 2024 to 2026 to be 157 million yuan, 192 million yuan and 236 million yuan, corresponding to EPS of 2.29 yuan, 2.79 yuan and 3.44 yuan respectively. Referring to comparable companies, we give the company 20-25X PE in 2024, corresponding to a reasonable value range of 45.85-57.32 yuan, and continue to maintain the "better than the big market" rating.
Risk warning. The risk of intensified market competition, less than expected promotion of magnetic stimulation products, and less than expected R&D of new products.
