\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 96 Imeik Technology Development Co.Ltd(300896) )
Event overview. On March 7, the company released its annual report for 2021. In 2021, the company achieved revenue of 1.448 billion yuan, a year-on-year increase of 104.13%, net profit attributable to the parent company of 958 million yuan, a year-on-year increase of 117.81%, revenue of 425 million yuan / + 73.46% in Q4 single quarter and net profit attributable to the parent company of 249 million yuan / + 68.24% At the same time, the company announced that the profit distribution plan for 2021 is to distribute cash dividends of RMB 21.00 (including tax) to all shareholders for every 10 shares based on 216 million shares.
Products + channels are driven by the same, and core products are in a fast rising channel. Sub products: all year round, the main products of the solution are 1 billion 46 million yuan /+133.84%, including gel products such as long-acting hyaluronic acid, Bao Ni Da, and Ru Bai angel, which earn 385 million yuan /+52.80%, two products account for 70% and 30%, and 2021H2 solution / gel products achieve 5.75/2.37 billion yuan. Sub channels: the annual direct sales / distribution revenue reached 883 / 564 million yuan respectively, with a year-on-year increase of 104% / 103%. The two modes accounted for 61.01% and 38.99% of the revenue. Sub regions: East China / North China / South China / Central China achieved revenue of RMB 6.48/1.94/1.65/151 million respectively, with a year-on-year increase of 125.27% / 62.99% / 111.51% / 94.57%, accounting for 44.75% / 13.33% / 11.39% / 10.42% of revenue respectively. In addition, at present, China’s medical beauty industry is in a period of rapid penetration, and under the current tightening policy background, the market of the company’s products, as scarce and compliant products, is expected to expand again.
The profit quality is high, and the internal R & D + external expansion is continuously promoted. The gross profit margin of the company’s annual sales is 93.70%/+1.53pct, of which the gross profit margin of solution / gel products is 93.82%/94.55%, up +1.37pct/+2.61pct; The annual net interest rate is 66.12% / + 5.02pct. Among them, the gross profit margin of Q4 single quarter sales is 94.07% / + 0.69pct, and the net profit margin is 58.58% / – 2.04pct, which is mainly due to the resource support provided by the new product Rubai angel, as well as the increase of R & D investment and employee salary. Expenses: the annual R & D expenses were 102 million / + 48.51%, and the R & D expense rate reached 7.07%. The sales expense is 156 million yuan / + 120%, and the sales expense rate is 11% / + 1PCT, which is mainly due to the increase of sales staff salary and sales promotion related expenses; The overhead rate is 4% / – 2pct. At present, the company has a total of 45 patents, including 25 invention patents. There are 236 sales and marketing personnel. On the one hand, it is conducive to the gradual expansion of the overseas market of pharmon Ltd. with an equity of RMB 4.2 billion during the reporting period. On the other hand, it is conducive to the gradual expansion of its overseas products with an equity of RMB 2.5 billion; At the same time, Beijing Norbert and Beijing Rongzhi biology have become 100% wholly-owned subsidiaries of the company from 49% equity; Lidocaine tetracaine cream for local anesthesia of intact skin before adult superficial skin surgery received clinical approval in October 2021.
Investment suggestion: the company has been deeply engaged in the medical and beauty industry for many years, with rich product matrix of hyaluronic acid + childlike beauty needle + implant line, mature channel construction, high-quality and efficient training system and continuous and large-scale promotion; With continuous R & D and innovation, the relay growth of botulinum toxin + liraglutide and other products is imminent. The company is expected to continuously improve its market share by virtue of its forward-looking product layout and license advantages. We expect that the company’s EPS in 22-24 years will be 6.93/10.07/13.48 yuan, and the corresponding PE will be 68 / 47 / 35x respectively. The company has good growth and certainty, and maintains the “recommended” rating.
Risk tip: the macro-economy is down, the industry competition is intensified, and the incubation of new products is less than expected.
