\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 53 Yantai Zhenghai Bio-Tech Co.Ltd(300653) )
Event: on the evening of February 28, 2022, the company announced its performance in 2021. During the reporting period, the company achieved a revenue of 400 million yuan, a year-on-year increase of 36.45%, and a net profit attributable to the parent company of 169 million yuan, a year-on-year increase of 42.44%. It is in the center of performance forecast, of which Q4 achieved a revenue of 99 million yuan, a year-on-year increase of 28.57%, and a net profit attributable to the parent company of 42 million yuan, a year-on-year increase of 82.61%, with strong performance growth.
Strong performance and continuous enhancement of profitability. Quarter by quarter, Q1-Q4 company realized a net profit attributable to the parent company of RMB 0.44/0.37/0.45/0.42 billion respectively, with a year-on-year increase of 126.58% / 4.2% / 12.5% / 82.61%. Q4 performance was strong. During the reporting period, the company achieved a gross profit margin of 89.11%, a year-on-year decrease of 3.12pct. It is expected that the opening of new production lines will lead to an increase in depreciation and amortization; The net interest rate was 42.12%, with a year-on-year increase of 1.77pct, mainly due to the decrease of expense rate during the period from 4.90pct to 47.81%, of which the sales expense decreased from 5.07pct to 30.52%. The expense rate of the company was properly controlled and the profitability continued to increase.
The sales of core varieties of prosthodontics increased significantly, and the absorbable dural patch increased steadily. In terms of varieties, the revenue of oral prosthetic film is 192 million yuan (+ 49.04%), accounting for 47.94%, which is mainly due to the substantial growth of the company's product demand with the full opening of oral terminals such as private and public hospitals, and the steady growth of the demand for maxillofacial surgery is expected. Absorbable dura mater patch achieved a revenue of 158 million yuan (+ 14.71%), accounting for 39%. The company's products are the only products that have won the bid in all provincial centralized procurement projects, ensuring the company's product market advantage and steady growth. In addition, the income of bone repair materials was 36 million yuan (+ 64.15%), accounting for 8.89%. The income of other products was 15 million yuan (+ 173.59%), accounting for 3.81%, of which the income of agent implants was about 4 million yuan.
The distribution and supplement of data of heavy variety active biological bone is completed, and the market is imminent, with broad market prospects. On November 29, 2021, the company completed the issuance and supplement of active biological bone data. According to the device approval process, the food and drug administration shall issue the final review conclusion within 90 working days (the company's products are combined with drugs and devices, and the review time does not strictly depend on the above provisions). Active biological bone is the most cost-effective bone defect treatment method at present. It has a wide application scenario. The peak sales of the benchmark Medtronic's influebone is US $1 billion. The performance of the company's products has been optimized. At present, the company is simultaneously building a sales team and pricing products. It is expected that the sales prospect will be good after listing
The project reserves are abundant, and the pipeline under research continues to advance. During the reporting period, other varieties under research, such as high swelling degradable hemostatic materials and self etching adhesives (used for bonding light curing composite resin to enamel and dentin), obtained product registration certificates. The dura mater (spinal cord) patch has entered the registration stage, the urethral repair patch has entered the case enrollment stage, the guided tissue regeneration membrane is in the clinical trial effect evaluation stage, and the endometrium is in the process exploration stage. The gradual implementation of new varieties is expected to become a new performance driver of the company.
Investment suggestion: the penetration rate of dental implants in China has a lot of room to improve, and the field of dental implants will maintain rapid growth. As a high-quality and scarce target in the field of oral consumables in China, the company has benefited from the rapid development of the oral industry and the import substitution of oral repair film, and its performance has increased rapidly. The approval of the company's active biological bone will open a broad orthopedic market. Other varieties under research, guided tissue regeneration membrane and new generation biofilm are upgraded versions of existing varieties, which will further enhance the competitiveness of products. We expect that the net profit attributable to the parent company from 2022 to 2024 will be RMB 202 / 250 / 311 million respectively, and the corresponding PE will be 41 / 34 / 27 times respectively. We will continue to give the "buy" rating.
Risk prompt: risk of changes in centralized purchase policies; Market competition risk; R & D risk.
