\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 53 Yantai Zhenghai Bio-Tech Co.Ltd(300653) )
Matters:
The company released its 2021 annual report, realizing a revenue of 400 million yuan, a year-on-year increase of 36.45%; The net profit attributable to the parent company was 169 million yuan, a year-on-year increase of 42.44%; The net profit attributable to the parent company after non deduction was 161 million yuan, with a year-on-year increase of 46.35%. The company's performance is in line with expectations. The profit distribution plan for 2021 is 8.8 yuan (including tax) for every 10 shares to 5 shares.
In 2021q4, the revenue in a single quarter was 99.15 million yuan, a year-on-year increase of 28.57%; The net profit attributable to the parent company was 42.11 million yuan, a year-on-year increase of 83.05%.
Ping An View:
The company's performance was brilliant, and the gross profit rate decreased slightly. In 2021, the company realized a revenue of 400 million yuan (+ 36.45%), and a net profit attributable to the parent company of 169 million yuan (+ 42.44%), which was 20% and 25% respectively compared with the CAGR in 2019, maintaining a consistently good performance. In 2021, the gross profit margin of the company was 89.11% (- 3.12pp) and the net profit margin was 42.12% (+ 1.77pp). We believe that the decrease of gross profit margin is mainly affected by the increase of cost, the increase of distribution proportion and the price reduction of dura mater (spinal cord) in some provinces. In terms of expense rate, the sales expense rate is 30.52% (- 5.07pp), the management expense rate is 7.51% (+ 0.22pp), the R & D expense rate is 8.79% (- 0.27pp), and the financial expense rate is - 0.42% (+ 1.03pp).
Oral products are continuously and rapidly consumed in large quantities, and the dura mater is not afraid of the influence of centralized collection. Among oral products, the revenue of oral repair film was 192 million yuan (+ 49.04%), and that of bone repair materials was 35.56 million yuan (64.15%), 18% and 38% respectively compared with CAGR in 2019. At present, the centralized purchase of dura mater is carried out in 5 provinces, and the company's product is the only product of the same kind that has won the bid in all centralized purchase projects. In 2021, the income of dura mater (spinal cord) was 158 million yuan (+ 14.71%), still higher than the growth rate of the industry, 14% higher than that of CAGR in 2019.
The company's products continue to be rich, and the performance of active biological bone is elastic. Since 2021, the company has added surgical packing sponge, self etching adhesive and other products; Dura mater patch is an upgraded version of the existing product, and the registration application receives the patch notice; The supplement materials of heavy variety active biological bone were submitted in November 2021, and the review cycle is expected to be within 90 working days. Therefore, we expect that the active biological bone is expected to be approved for listing in 2022q2 at the earliest, and the product is expected to become more than 1 billion products with great performance flexibility.
Profit forecast and investment rating. The company's core products maintain rapid and high-volume, and the dura mater (spinal cord) is not afraid of the impact of centralized mining, so as to realize the exchange of quantity with price. We maintain the forecast that the net profit from 2022 to 2023 will be 223 million yuan and 299 million yuan respectively, and the net profit in 2024 is expected to be 360 million yuan. The current share price corresponds to 37 times of PE in 2022, maintaining the "recommended" rating.
Risk tips: 1) product concentration risk: the company's main revenue is concentrated in the two products of prosthodontic membrane and dura mater, and the deterioration of the competition pattern will affect the company's performance; 2) R & D risk: the company is currently developing many varieties, which may fail or fall short of expectations; 3) Policy risk: the company's intensive purchase of relevant products may exceed market expectations.
