LEPU ScienTech Medical Technology (2291) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 44.4% YoY to RMB471.6m; net profit attributable to shareholders increased 62.2% to RMB245.6m.

• Growth was led by biodegradable PFO occluder commercialization; its sales accounted for nearly one-third of total revenue.

• The board recommended a final dividend of RMB0.62 per share, subject to shareholder approval.

Financial highlights

• Gross profit increased 46.7% YoY to RMB424.0m; operating profit was RMB286.1m and profit before tax was RMB286.1m.

• Selling expenses rose 56.8% to RMB71.1m, while administrative expenses fell 15.4% to RMB35.6m and R&D expenses declined 6.6% to RMB58.0m.

• Basic and diluted EPS were both RMB0.71, versus RMB0.44 in 2023.

• Operating cash flow increased 35.5% YoY to RMB222.5m; year-end cash and cash equivalents were RMB1,121.3m.

Outlook and guidance

• Priorities include advancing biodegradable occluders, expanding sales channels in China and overseas, and broadening treatment options across structural heart disease.

• Clinical trials for the aortic regurgitation TAVR system are planned by end-2025; a mitral clip registration application is targeted for H1 2025.

• The super stiff guidewire is expected to receive marketing approval in Q4 2025; proceeds from the global offering are expected to be fully used by Dec. 31, 2027.