\u3000\u3 Guocheng Mining Co.Ltd(000688) 029 Micro-Tech (Nanjing) Co.Ltd(688029) )
Performance review
On February 25, 2022, the company released the performance express of 2021. In 2021, the company realized a revenue of 1.947 billion yuan, a year-on-year increase of + 47%; The net profit attributable to the parent company was 330 million yuan, a year-on-year increase of + 27%; The net profit deducted from non parent company was 281 million yuan, a year-on-year increase of + 32%;
In terms of quarters, Q4 company achieved a revenue of 558 million yuan in 2021, a year-on-year increase of + 41%, and a net profit attributable to the parent company of 82 million yuan, a year-on-year increase of + 57%, deducting a net profit not attributable to the parent company of 73 million yuan, a year-on-year increase of + 42%.
Business analysis
The promotion of new products was accelerated, and the revenue increased rapidly year-on-year. In 2021, the epidemic situation in most parts of China has been effectively controlled, hospital outpatient treatment and surgery have been carried out in an orderly manner, and the demand for consumables under digestive endoscopy has increased rapidly. In addition, the company strengthened new product development and market development, accelerated the listing and sales of new products while maintaining the growth of traditional products, contributed to the significant increase of operating revenue year-on-year, and further consolidated the company’s domestic leading position in the industry.
R & D investment and equity incentive expenses increased, with strong long-term growth momentum. In 2021, the company continued to increase R & D investment, with an annual R & D expenditure of 154 million yuan, a year-on-year increase of 54.60%. At the same time, the share based payment fee generated by the equity incentive plan is 77.05 million yuan. The increase of R & D investment and incentive fee will help consolidate the company’s technical advantages and attract more excellent talents. Excluding the impact of share based payment and income tax, the annual net profit attributable to the parent company reached 398 million yuan, a year-on-year increase of 48.43%.
The launch and promotion of visual products are progressing smoothly, and the strength of innovation and R & D is leading. In November 2021, the company’s “EYEMAX insight” pancreaticobiliary imaging system was officially approved for listing, marking a new breakthrough in visualization products. In the future, it is expected to rapidly increase the volume by virtue of its superior design and cost performance compared with its competitors. The company is leading in product R & D and technological innovation. A series of innovative products under research at home and abroad will be gradually listed and sold. The sales of new products will become an important support for the company’s performance growth in the future.
Profit adjustment and investment suggestions
We are optimistic about the volume of innovative products of the company in the future. Considering the increase of the company’s investment in R & D and other aspects, the forecast of net profit in 2021 and 2022 is reduced by 9% and 8%, and the net profit attributable to the parent company from 2021 to 2023 is expected to be 3.30/5.1/7 5 billion yuan, with a year-on-year increase of 27% / 55% / 47%, EPS of 2.48/3.83/5.63 yuan / share respectively, and the current price corresponding to PE is 63 / 40 / 28 times, maintaining the “buy” rating.
Risk tips
Risk of medical insurance fee control policy; Risk of new products not meeting expectations; Risk of product promotion failing to meet expectations; Risk that overseas sales channel construction fails to meet expectations; Exchange risk
