On January 30, Robust Medical (300888SZ) announced its 2023 annual results. The company expects operating revenue to reach 80600 million to 82600 million yuan, the expected net profit is 6800 million yuan to 800 million yuan, a decrease compared with the same period last year. In detail, the company's Consumer Health segment is expected to bring in 42100 million to 43With a revenue of 100 million yuan, the year-on-year growth rate will reach 505% to 755%。Notably, the company's conventional medical consumables business is expected to grow by approximately 16% to 18%, showing solid market performance.
The company's revenue and net profit in 2023 are expected to decline, mainly due to the suspension of projects in cooperation with Xingda, and from the principle of prudence, all of them will be reversed to the net profit corresponding to the asset disposal gains recognized in the previous period.13600 million yuan, coupled with the company's disposal of infection protection product inventory and scrapped equipment from the reduction in profits. Despite this, the company's operating income of conventional medical consumables and consumer goods still maintained steady growth, and these two business areas are expected to become stable growth points for the company in the future.
On the same day, the company announced a share repurchase plan and a share increase plan. The company intends to repurchase the company's shares with a maximum of 200 million yuan for equity incentives or employee stock ownership plans, and some directors, supervisors and senior managers plan to increase their holdings of the company's shares by no more than 6.3 million yuan. These buybacks and increases represent both a strong response to the pressure on the company's performance in 2023 and a recognition of the company's value. This move reflects the company's affirmation of the contrarian growth of conventional medical consumables and consumer goods, as well as the confidence to maintain stable growth in the future driven by the two-wheel drive of medical + consumption.
Specifically, the suspension of the project between Wenwen Medical and Xingda is mainly due to the significant changes in the real estate market situation. In June 2023, the Company signed an agreement with Xingda Company on compensation and resettlement for urban renewal and relocation to enhance asset quality and value. However, considering the downturn in the real estate market and the uncertainty of the future, the two sides decided to postpone the project after friendly consultations. This decision will not affect the company's day-to-day operations.
Although asset impairment put pressure on Robust Medical's full-year results, the company's conventional medical consumables and consumer businesses still showed a steady growth trend. As the epidemic was brought under control and the demand for infection protection products returned to normal, the revenue of this business declined. However, the conventional medical consumables business has developed steadily, and the full-year operating income is expected to increase by 16% to 18%. In terms of consumer health, the company expects operating income of 42100 million to 43100 million yuan, a year-on-year increase of 505% to 755%, showing the strong development resilience of the "PURCOTTON cotton era".
Looking ahead, RobustHealth's strategic focus is to continue to consolidate and expand its leadership position in the healthcare and consumer markets. Through the operation of share repurchase and shareholding increase plan, the company has demonstrated its firm confidence in stable growth in the future under the two-wheel drive strategy of medical + consumption. （cis）