\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 96 Imeik Technology Development Co.Ltd(300896) )
Key investment points
Performance summary: the company released the annual report of 2021. In 2021, the revenue was 1.45 billion yuan, a year-on-year increase of + 104.1%, the net profit attributable to the parent was 960 million yuan, a year-on-year increase of + 117.8%, after deduction of non-profit, it was about 910 million yuan, a year-on-year increase of + 115.6%, and the cash flow from operating activities was 940 million yuan, a year-on-year increase of 121.4%; 21q4 achieved a revenue of 430 million yuan in a single quarter, a year-on-year increase of about + 72%, and the net profit attributable to the parent company was 250 million yuan, a year-on-year increase of 66.7%, which was about 240 million yuan after deduction.
Quarterly, the company’s 21q3 / Q4 revenue was 390 million yuan and 430 million yuan respectively, with a year-on-year growth rate of 75.1% and 73.5% respectively. In terms of products, the operating revenue of solution injection products was 1.05 billion yuan, accounting for about 72.4%, and the gross profit increased by 136.6% year-on-year; Gelatin injection products achieved operating income of 385 million yuan, revenue accounted for about 26.6%, gross profit grew 56.2% over the same period. Relying on the differentiated layout of the current leading product hi Ti duo SKU, the company meets the needs of various market segments, the scale effect continues to be reflected, and the gross profit margin in a single quarter reaches a new high.
The production differentiation product matrix promotes performance growth, and the mature channels help market promotion. The company’s product matrix is rich and differentiated, which can meet different needs of consumers. Star product “Hi body” continues to be sold in large quantities, monopolizing the neck pattern filling market; The heavy new Tongyan needle “moistening angel” has the dual effects of filling and regeneration. It has been successfully promoted after being approved for listing in June 2021. We expect that “Hi body” will maintain the current growth rate in the future, and “moistening angel” has the potential to become a new popular model and achieve rapid volume. The company has a mature sales team to promote to industry doctors, operators of medical and American institutions and consumers through Wuxi Online Offline Communication Information Technology Co.Ltd(300959) different channels. By the end of 2021, the company had 236 sales and marketing personnel, covering about 5000 medical and beauty institutions in 31 provinces, cities and autonomous regions across the country. Professional sales team and mature market channels help promote the company’s products.
The research and development of new products has been accelerated, laying the foundation for long-term development. In 2021, the company’s R & D expenses were 100 million yuan, a year-on-year increase of + 64.5%. By the end of 2021, the company’s R & D personnel accounted for 23.08% of the company’s total number, and has accumulated 45 patents, including 25 invention patents; In addition, the company continues to promote the merger and acquisition of huansbio, South Korea, and is expected to expand the type A botulinum toxin product line and enrich the product pattern in the future. The company has a clear layout of heavy products within 3 ~ 5 years, and continuously strengthen R & D capacity to lay the foundation for long-term development.
Profit forecast: it is expected that the company’s popular product “Hi body” will maintain rapid revenue growth in the future. The derivative products “panda needle” and “white angel” of Tong Yan needle have the potential to become large single products and will be rapidly promoted to bring revenue increment to the company. It is estimated that the revenue growth of the company’s existing business in the next three years will be 68.57%, 52.23% and 44.38% respectively. The net profit attributable to the parent company from 2022 to 2024 will be 1.31 billion yuan, 2.02 billion yuan and 2.9 billion yuan respectively, and EPS will be 6.06 yuan, 9.34 yuan and 13.40 yuan respectively.
Risk warning: the risk of product price decline, the risk of less than expected research and development progress, and the risk of major medical accidents.
