\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 96 Imeik Technology Development Co.Ltd(300896) )
Financial performance: revenue grew steadily and profit performance exceeded expectations. In 2021, the company achieved a revenue of 1.448 billion yuan (YoY + 104.13%), a net profit attributable to the parent company of 958 million yuan (YoY + 117.81%), and a non net profit attributable to the parent company of 914 million yuan (YoY + 115.55%), of which non recurring profit and loss included 52.58 million yuan of investment income from entrusted investment and trading financial assets. The overall gross profit margin of the company increased by 1.53pct to 93.70%, the sales expense ratio increased by 0.81pct to 10.81% and the management expense ratio decreased by 1.66pct to 4.47%, which was mainly due to the continuous optimization of management and control ability under the scale effect, the R & D expense ratio decreased by 1.65pct to 7.07%, driving the net profit attributable to the parent company increased by 5.02pct to 66.12% and the net operating cash flow increased by 121.48% to 943 million yuan. Among them, Q4 achieved a revenue of 425 million yuan (YoY + 73.48%) in a single quarter, a net profit attributable to the parent company of 249 million yuan (YoY + 66.69%), and the net interest rate decreased by 1.73pct to 58.59%. The company plans to distribute cash of 21 yuan (including tax) for every 10 shares based on 216.4 million shares, and the dividend is expected to account for 47.44% of the net profit attributable to the parent company.
Product layout: Hi body / Angel needle drives the overall growth of performance, and the echelon layout of the research product line is ready. Among them: 1) the revenue of solution injection products is 1.046 billion yuan (YoY + 133.84%), accounting for 72.25%, the gross profit margin is 93.82% (+ 1.37pcts), and the sales volume is 2.7232 million pieces (YoY + 119.27%). The core product hi body series is still at a low penetration rate in the neck tattoo and periocular injection Market, benefiting from the high growth rate of the anti-aging market and the high recognition of products, and the performance continues to be strong; 2) gel injection products revenue was 385 million yuan (yoy+52.80%), accounting for 26.61%, gross margin 94.55% (+2.61pcts), sales amounted to 706 thousand and 400 (yoy+15.74%), of which Bonnie, Yimei 1 plus 1, AI Lai Lai still maintained a relatively rapid growth. The core product “yubai angel” was approved by the food and Drug Administration for listing in June 2021, benefiting from the doctor injection license authorization system, combining the doctor training with the authorization system. The product promotion has the first mover advantage and has a rapid penetration in various types of institutions across the country. 3) The revenue of facial implant line is 5.2997 million yuan (YoY + 187.68%), and the revenue of cosmetics is 110971 million yuan (YoY + 40.73%). In terms of research and production line, lidocaine tetracaine cream for skin local anesthesia and botulinum toxin type A for injection owned by hoons, South Korea, have entered the clinical trial stage. The second-generation implant line has obtained the registered type inspection report. In addition, there is the development of biomedicine such as recombinant protein and polypeptide, which can enhance the synergy of existing production lines and global market competitiveness after listing, Create a layout in the whole field of medical beauty and metabolic disease treatment.
Highlights of the company: R & D strength and channel expansion go hand in hand, and investment and Hong Kong stock listing support long-term development. 1) R & D side: 117 R & D personnel (accounting for 23.08%), R & D investment and revenue accounting for 7.07%, and has accumulated 45 patents and 25 invention patents; 2) Channel side: adhere to direct selling. By the end of the 21st century, there were 236 salespeople (accounting for 46.55%), covering about 5000 medical and beauty institutions in 31 provinces and cities across the country. The doctor injection license authorization system is adopted for the new product “moistening angel”, and the channel construction is efficient, flexible and stable. In addition, the company has built a comprehensive online + offline marketing system. At present, the online quanxuan academy has more than 10000 registered doctors and organized more than 150 offline academic conferences, so as to output high-value content for institutional operators and doctors and enhance brand influence. 3) Investment layout: the acquisition of South Korea’s huans25.5 million yuan for a consideration of 856 million yuan 42% equity layout type A botulinum toxin. In terms of capital strategy, the proposed issuance of H shares is in the review process, which is expected to help the long-term development of diversification.
Profit forecast and investment suggestion: as the leading manufacturer of medical and American injections in China, the company is moving towards diversification and globalization. The growth of core series hi body is expected, and the prospect of heavy new regenerated injections is broad. Increase the company’s long-term performance through research. Based on the promotion expectation of new products such as yubai angel, we expect to achieve revenue of RMB 2.319/34.34/4.949 billion respectively from 2022 to 2024, with a year-on-year increase of 60.1% / 48.1% / 44.1%, and net profit attributable to parent company of RMB 1.430/2.085/2.959 billion, with a year-on-year increase of 49.3% / 45.8% / 41.9%. Based on the performance of the annual report, we maintain the target market value of 153.2 billion yuan, corresponding to 73 times PE in 2023, and maintain the “buy” rating.
Risk warning: new technology substitution risk; The landing of new products is less than expected; New product forensics risk; H-share listing and overseas acquisition progress risk; Product safety risk, etc.
