\u3000\u3 Guocheng Mining Co.Ltd(000688) 366 Shanghai Haohai Biological Technology Co.Ltd(688366) )
Event: on February 28, the company issued a performance express, which realized an operating revenue of 1.766 billion yuan in 2021, a year-on-year increase of 32.57%; The total profit was 382 million yuan, a year-on-year increase of 48.81%; The net profit attributable to the parent company was 352 million yuan, a year-on-year increase of 53.19%; The net profit deducted from non parent company was 327 million yuan, with a year-on-year increase of 58.38%. The revenue is basically in line with our expectations, and the profit is lower than our expectations.
Revenue side: Chinese intraocular lens / ophthalmic viscoelastic / orthopedics and other products returned to normal and rapid growth, and OK mirror, Haimei hyaluronic acid and ouhuameike contributed to the increment of revenue. Ophthalmology sector: in the first half of 2021, the revenue of intraocular lens increased by 64.08% year-on-year. The bid winning situation of the company’s centralized procurement of products and the growth trend of domestic brands are good. We estimate that the crystals of high-end imported brands may be partially affected; Acting OK mirror “MaiErKang” was officially listed and sold in the second half of the year; We estimate that the ophthalmology sector is still expected to achieve rapid growth. Medical and beauty sector: Haimei hyaluronic acid was rapidly promoted in the market, and the revenue of hyaluronic acid products increased by 143.16% year-on-year in the first half of 2021; Ouhuameike (holding 63.64%) is expected to return to the level of revenue of more than 200 million yuan and consolidate after September; We estimate that the medical and American sector as a whole is expected to achieve rapid year-on-year growth. The overall growth of revenue side basically meets our expectations.
Profit side: the centralized purchase of intraocular lens and the adjustment of medical and American income structure led to a steady and slight decrease in gross profit margin, and the R & D expenses increased more year-on-year. In terms of gross profit margin, it was stable and slightly decreased as a whole, mainly due to 1) the decrease in the sales price of some models of intraocular lens in the area with volume procurement; 2) The acquired ouhuameike has been included in the consolidated statements since September 2021. Its gross profit margin of RF and laser medical beauty equipment and household beauty instruments is lower than that of the original business of the company. In terms of cost rate, as many research projects of Ophthalmology and medical beauty of the company continue to be carried out or enter the clinical trial stage, the R & D expenditure has increased significantly year-on-year. We estimate that the R & D cost rate has increased slightly. Various marketing and marketing activities returned to normal after the epidemic weakened, resulting in an increase in sales expenses. In addition, the consolidation of ouhuameike also has a partial impact on the overall performance of the company. For 2022, considering that the intraocular lens is expected to grow steadily and ouhuameike is expected to complete the profit increment contribution, we believe that the profit side of the company is expected to be significantly improved.
Profit forecast and investment rating: considering the time required for the optimization of intraocular lens structure and the promotion of new products, and the high level of R & D expenses, we adjusted the net profit attributable to the parent company from 607 / 776 million yuan to 562 / 658 million yuan from 2022 to 2023, with EPS of 3.20/3.74 yuan respectively, and PE corresponding to the current stock price of 32x / 28x respectively. Maintain the “buy” rating.
Risk warning: the market promotion of new products may be lower than expected; R & D progress may be less than expected; The risk of M & A or integration is less than expected; Pharmaceutical industry policy uncertainty risk.
