Shanghai Haohai Biological Technology Co.Ltd(688366) (688366
Event: the company announced that Haohai development, a wholly-owned subsidiary, signed the transfer agreement with Xiamen NANPENG Group Co., Ltd., Li Zhiyi and NANPENG Group Co., Ltd. and agreed that Xiamen NANPENG and Li Zhiyi would transfer 45% and 6% of the equity of Xiamen NANPENG Optical Co., Ltd. held by them to Haohai development respectively. After the completion of this transaction, Haohai development obtained 51% equity of NANPENG optics for a total consideration of RMB 70 million. The company will get the exclusive distributor distribution rights of Hengtai Phenix Optical Company Limited’s corneal orthokeratology mirror “Hengtai Hiline” (“OK mirror”), rigid contact lens (RGP) and so on through Chinese mainland through the transaction, until January 2026.
OK mirror product line is constantly enriched, with 2 exclusive distribution + 2 independent research and development. In March 2021, the company passed an agreement with Hengtai optics, The exclusive selling rights of its high-end keratoplasty rigid gas permeable contact lens (OK mirror) Mai Erkang myOK (oxygen penetration rate of 141) in Chinese mainland for 10 years, and exclusive selling right of the optical lens “Beth see” in Chinese mainland, and the management and control of myopia in children are obtained. The company has won the “Hengtai Hiline” (“OK mirror”) in the next city. ）、 Rigid corneal contact lens (“RGP”) The exclusive agency distribution rights of products in Chinese mainland. So far, the company has the exclusive distribution right of all products registered by Hengtai optics in mainland China to realize the product portfolio of OK mirror high-end products and middle-end products, as well as defocus frame mirror, RGP hard mirror and so on. In addition, the two OK mirror products independently developed by the company, with an oxygen permeability of 125, have been clinically incorporated in the third quarter of 2020. According to the time calculation, the clinical work is expected to be completed around the end of 2021 and the production is expected to be reported in 2022; Another OK mirror with oxygen permeability of 180 (the highest in the world) has also been developed.
The company is expected to be among the first-line echelons in recent 2 years. According to the company announcement, the Taiwan Hengtai OK mirror products, which is responsible for marketing and sales of Nan Peng optical, has a market share of 15% in Chinese mainland in 2018. The sales volume of Hengtai optical OK mirror in China from 2018 to 2019 reached about 180000 and 200000 respectively. Considering the growth in the past two years and the potential volume of the high-end product MaiErKang myok represented by Haohai this year, we judge that the sales volume of Haohai’s agent OK mirror will exceed 300000 pieces in the next 1-2 years, and will be among the first tier of China’s OK mirror market after the independently developed products are listed.
Increase the company’s revenue and profit, and expand the company’s channels and sales team. According to the company’s announcement, according to the combined data of NANPENG optics and NANPENG Hengtai, the revenue in 2020 was 118 million yuan and the net profit was 11 million yuan. According to the company’s calculation, the unaudited net profit of the complete agency and distribution business of Hengtai optical target products of the target company’s group in 2020 was about 21 million yuan; According to the proportion of 51%, we expect that the company will increase the net profit attributable to the parent company by more than 10 million yuan in 2022. Since 2015, NANPENG optics has been selling the OK mirror products of Hengtai optics. It has established a stable and efficient dealer team and a relatively complete sales channel, so that Hengtai optical products have formed a good reputation among doctors and consumers. Haohai’s incorporation of NANPENG optical team into the company will significantly enhance the company’s channel power and promotion ability.
Profit forecast: it is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 450 million yuan, 630 million yuan and 860 million yuan respectively, with corresponding growth rates of 95.0%, 41.4% and 36.0% respectively; EPS is 2.55 yuan, 3.61 yuan and 4.91 yuan respectively, and the corresponding PE is 51x, 36x and 27x respectively. Maintain the “buy” rating.
Risk warning: product sales are not as expected; Intensified market competition; Price reduction of products affected by policies; New product development is not as expected; M & a termination and M & a target performance were lower than expected.
