\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 96 Imeik Technology Development Co.Ltd(300896) )
Key investment points
Performance overview: in 2021, the revenue was + 104% year-on-year, and the net profit attributable to the parent company was + 118% year-on-year
In 2021, the company realized revenue / net profit attributable to parent company / deduction of net profit not attributable to parent company of RMB 1.45/9.6/910 billion, with a year-on-year increase of 104% / 118% / 116%.
In the single quarter of 21q4, the company realized revenue / net profit attributable to parent company / deduction of net profit not attributable to parent company of RMB 420 / 2.5 / 240 million, with a year-on-year increase of 73% / 67% / 70%. In 2021q1-q4, the revenue in a single quarter increased by 228% / 130% / 75% / 74% year-on-year respectively, and the net profit attributable to the parent company in a single quarter increased by 297% / 144% / 98% / 67% year-on-year respectively.
Profitability: the gross profit margin reached a new high and the cost side was well controlled.
2021: 1) gross profit margin: the gross profit margin reaches 93.7% (+ 1.5pp); 2) Expense ratio: the sales / management / R & D expense ratio is 10.8% / 4.5% / 7.1% respectively, with a year-on-year increase of + 0.4pp / - 1.7pp / - 1.6pp; 3) Net interest rate: the net interest rate is 66.1% (+ 5.0pp).
Q4 single quarter: 1) gross profit margin: the gross profit margin reached 94.1% (year-on-year + 0.7pp), which reached a new high mainly due to the continuous increase in the proportion of income of high gross profit products such as yubai angel and hi body panda needle; 2) Expense ratio: the sales / management / R & D expense ratio is 13.2% / 5.4% / 9.6% respectively, with a year-on-year increase of + 0.3pp / - 1.5pp / - 2.2pp; 3) Net interest rate: the net interest rate was 58.6%, down 14.2pp month on month, mainly due to higher non recurring profits and losses such as changes in fair value in 21q3, and the Q4 sales / R & D expense rate increased by 3.3pp/5.1pp month on month.
Highlights of the annual report: the product matrix continues to be enriched and the channel construction continues to be promoted.
Products: R & D is overweight, and the product matrix is continuously enriched. The company's R & D technology is leading in the industry and has rich experience in product commercialization. Its seven non-surgical medical beauty products have been approved as class III medical devices, ranking first in China. From the perspective of driving factors, the company has been driven by large single products (mainly high body neck stitch) → transformed into a comprehensive drive of product matrix:
1) solution: the revenue is 1.05 billion yuan (year-on-year + 134%), mainly including the star series hi body + hi body panda needle + huihuo bubble needle, in which the panda needle is positioned around the eye to resist aging, and the proportion of revenue continues to increase. 2) gel class: the income is 390 million yuan (up to +53%), mainly including the angel, the long effect, the Yimei one plus one, the hemp products, and the AI Fei. Among them, Rubai angel is the first approved skin filler containing L-lactic acid ethylene glycol copolymer microspheres in China and the world. The product adopts the doctor injection license authorization system, and the market feedback has been good since it was launched in August. Bonida has been listed for 10 years. With the increasing attention to the concept of regeneration, it is expected to achieve a high growth rate; 3) Facial implant line: income of 5.3 million yuan (year-on-year + 188%); 4) Derived "companion" cosmetics brand: revenue of 11.1 million yuan (year-on-year + 41%).
In the future, the company will still have 8 projects under research, covering the field from biomedical materials to biological drugs and chemicals. Products under development include lidocaine tetracaine cream, botulinum toxin A, second generation facial implant line, liraglutide injection, etc. By the end of 2021, the company has accumulated 45 registered patents, including 25 invention patents.
Channel: direct selling accounts for 61%, covering 5000 medical and American institutions, and more than 10000 cooperative doctors are registered and certified. The company has established a highly professional sales team with strong execution. By the end of 2021, the company has 236 sales and marketing personnel, covering about 5000 medical and American institutions in China, and organized more than 150 offline academic conferences at all levels throughout the year. In addition, the company has strengthened the training and exchange of doctors through the training platform "quanxuan College", and more than 10000 cooperative doctors have been registered and certified.
Profit forecast and valuation
The company is in the link with the most bargaining power in the fast-growing medical and American industry. It has great potential and wide space in terms of profitability, product differentiation and scarcity, and project reserves. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 1.53 billion yuan, 2.22 billion yuan and 3.02 billion yuan respectively, with growth rates of 60%, 45% and 36% respectively, corresponding to 66, 46 and 34 times of PE, maintaining the overweight rating.
Risk tips
The risk of intensified market competition, business qualification and product registration approval can not be renewed on time.
