\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 53 Yantai Zhenghai Bio-Tech Co.Ltd(300653) )
Core view
Event: the company released its annual report for 2021. In 2021, the company realized an operating 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%; Deduct non net profit of 161 million yuan, with a year-on-year increase of 46.35%.
Gradually, the company increased market development and further expanded its marketing territory. By the end of 2021, the company's products had been online in 29 provinces across the country, with more than 1700 products in each province, an increase of about 500 products compared with the end of 2020. The growth of sales network has laid a solid foundation for the steady growth of sales in the future. In 2021, the sales revenue of oral repair film products was 192 million yuan, with a year-on-year increase of 49.04%; The income of dural patch was 158 million yuan, a year-on-year increase of 14.71%. The company has actively participated in the procurement of dural patches. The five provinces that have carried out centralized procurement have successfully won the bid, and the bid winning price is at the median level, ensuring the market advantage.
The product pipeline has entered the harvest period, and the active biological bone is expected to be approved in the middle of the year. In November 2021, the company's heavy-duty product active biological bone has completed the submission of supplementary materials as required, and entered the main review status, which is expected to be approved in the middle of the year. In addition, in December 2021, the surgical tamponade sponge independently developed by the company was approved; In February 2022, the company's product self etching adhesive was approved for listing; The hard brain (spinal) membrane patch developed on the basis of many years of application of similar products listed by the company has submitted the registration application; Urethral repair patch entered the stage of case enrollment; Guided tissue regeneration membrane is in the stage of clinical trial effect evaluation. The company's product ladder development strategy has made remarkable progress. With the continuous enrichment of product varieties, the company's brand advantages and competitiveness are expected to be further consolidated and improved.
Profit forecast and Valuation: we estimate that the company's revenue from 2022 to 2024 will be 510 million yuan, 650 million yuan and 850 million yuan respectively, with a year-on-year increase of 28.1%, 27.7% and 30.6%; The net profit attributable to the parent company was 210 million yuan, 270 million yuan and 360 million yuan respectively, with a year-on-year increase of 21.7%, 33.1% and 32.6%. On March 1, the closing price (70.10 yuan / share) corresponding to PE was 41, 31 and 23 times respectively. It was covered for the first time and rated "buy".
Risk warning: centralized purchase policy risk; Product development is not as expected; Covid-19 epidemic affects routine diagnosis and treatment
