Yantai Zhenghai Bio-Tech Co.Ltd(300653) (300653)
Event: on the evening of January 5, 2021, the company announced the performance forecast for 2021. During the reporting period, the company is expected to realize a net profit attributable to the parent company of 154-178 million yuan, a year-on-year increase of 30% – 50%, of which the non operating income is 7.6595 million yuan, mainly due to various government subsidies.
The performance is strong, and Q4 is expected to increase by 22% – 116% year-on-year. The strong performance of the company is mainly due to the continuous increase of market expansion, the continuous improvement of brand influence and product competitiveness, and the continuous improvement of market demand during the reporting period. It is expected that the core variety of oral repair film will continue to maintain a good growth rate. Among them, Q4 company is expected to realize a net profit attributable to the parent company of 28-52 million yuan, with a year-on-year increase of 21.74% – 116.09%.
The distribution and supplement of data of heavy variety active biological bone is completed, and the market is imminent, with broad market prospects. On November 29, 2021, the company completed the issuance and supplement of active biological bone data, and can be listed in 100 working days according to the device approval process. Active biological bone is currently the most cost-effective bone defect treatment method, with broad application scenarios. The peak sales of the benchmark Medtronic’s influebone is US $1 billion. The performance of the company’s products has been optimized. At present, the company is simultaneously building a sales team and pricing products, and is expected to have a good sales prospect after listing.
The project reserves are abundant, and the pipeline under research continues to advance. By the end of the first three quarters, in addition to active biological bone, other varieties under development, such as self etching adhesive products, were used for the bonding of light curing composite resin with enamel and dentin. During the reporting period, the acceptance letter of registration application issued by nmpa was received, and the high swelling degradable hemostatic materials received the acceptance notice of registration application issued by Shandong food and drug administration. In addition, the guided tissue regeneration membrane is in the clinical trial effect evaluation stage, the urethral repair patch and biological dural patch are in the clinical stage, and the endometrium is in the process exploration stage. The gradual implementation of new varieties is expected to become a new performance driver of the company.
Investment suggestion: the penetration rate of dental implants in China has great room to improve, and the dental implant field will maintain rapid growth. As a high-quality and scarce target in the field of oral consumables in China, the company has benefited from the rapid development of the oral industry and the import substitution of oral repair film, and its performance has increased rapidly. The approval of the company’s active biological bone will open a broad orthopedic market. Other varieties under research guide tissue regeneration membrane and a new generation of biofilm are upgraded versions of existing varieties, which will further enhance the competitiveness of products. We expect that the net profit attributable to the parent company from 2021 to 2023 will be RMB 163 / 201 / 247 million respectively, and the corresponding PE will be 50 / 40 / 32 times respectively. We will continue to give the “buy” rating.
Risk prompt: risk of changes in centralized purchase policies; Market competition risk; R & D risk.
