\u3000\u3 Guocheng Mining Co.Ltd(000688) 617 Apt Medical Inc(688617) )
Performance Brief
On March 10, 2022, the company issued its annual report for 2021. In 2021, the company realized an income of 829 million yuan, a year-on-year increase of + 73%; The net profit attributable to the parent company was 208 million yuan, a year-on-year increase of + 88%; The net profit deducted from non parent company was 168 million yuan, a year-on-year increase of + 71%;
In terms of quarters, Q4 company achieved a revenue of 235 million yuan in 2021, a year-on-year increase of + 50%, a net profit attributable to the parent company of 46 million yuan, a year-on-year increase of + 17%, and a net profit not attributable to the parent company of 22 million yuan, a year-on-year decrease of – 32%.
Business analysis
The annual revenue increased rapidly, and the channel products developed rapidly. In 2021, focusing on the strategic development planning direction, the company actively gave full play to its business advantages in R & D, technology, quality, products, markets, channels and other aspects, and achieved rapid growth throughout the year. In the main business, the revenue of electrophysiology business was 233 million yuan (+ 46%); The revenue of coronary artery access business was 382 million yuan (+ 97%). China’s electrophysiological business has achieved a breakthrough from two-dimensional to three-dimensional as scheduled, and has established a good market brand of three-dimensional products. The coverage and admission penetration of vascular intervention products have also been further improved.
The rate of R & D expenses has increased significantly, and some projects have entered the clinic one after another. In 2021, the company’s annual net interest rate reached 23.51% (+ 1.78pct), and the management expense rate was 6.65% (- 1.60pct). The scale effect brought by revenue growth was significant. The annual R & D expense rate of the company is 16.28% (+ 1.28pct). The R & D expense of Q4 increased significantly in 2021, and the number of in vivo R & D projects and projects entering the clinical stage increased, laying a good foundation for the long-term growth space of the company.
The bid winning results of regional centralized procurement are good, and the high growth trend of channel products is expected to continue. In 2021, the company participated in the bidding for volume procurement in many regions and performed well in the selection results of coronary balloon, guide wire, guide tube and other products. Due to the large space for the company to increase its market share in China, the high growth trend of channel products is expected to continue in the future.
Profit adjustment and investment suggestions
We believe that the company has the leading product technology in the field of electrophysiology and vascular intervention, and is expected to maintain the leading position in China and gradually seize the market share of foreign-funded enterprises in the future. It is estimated that the company’s net profit attributable to the parent company from 2022 to 2024 will be RMB 292 million, 407 million and 559 million, with a year-on-year increase of 40%, 39% and 37%, EPS of RMB 438, 6.11 and 8.39 respectively, and the current price corresponding to PE is 47, 34 and 25 times, maintaining the “overweight” rating.
Risk tips
The risk of medical insurance fee control policy, the risk that the promotion of research projects does not meet the expectations, the risk that the construction progress of raised investment capacity does not meet the expectations, and the risk of exchange rate fluctuation.
