\u3000\u3 Guocheng Mining Co.Ltd(000688) 617 Apt Medical Inc(688617) )
Event: the company disclosed its performance in 2021 and achieved an operating revenue of 829 million yuan during the reporting period, with a year-on-year increase of 72.85%; The net profit attributable to the parent company was 208 million yuan, a year-on-year increase of 87.7%; The net profit attributable to the parent company after deduction was 168 million yuan, an increase of 71.45% year-on-year; The basic earnings per share was 3.19 yuan, and the performance was in line with market expectations.
Comments:
R & D investment increased, and the profit growth of Q3 / Q4 slowed down. In Q3 / Q4, the company achieved operating revenue and net profit attributable to parent company of RMB 209 / 2.35 and RMB 47 / 0.46 million respectively, with year-on-year growth of 60.9% / 50.0% and 50.0% and 17.1%, while in Q2, the growth rate of net profit attributable to parent company reached 115.58% and the growth rate of profit in single quarter slowed down, mainly due to the increase of R & D investment of the company in these two quarters, and the R & D expense rate reached 18.7% and 25.2% respectively. Considering that the company promoted the R & D Progress of multiple products in the second half of 21, we expect that the R & D expenses will remain high, and the promotion of the registration of multiple products in the pipeline is expected to lay the foundation for the medium and long-term performance growth of the company.
Revenue maintained rapid growth, and vascular intervention and electrophysiology sectors made rapid progress hand in hand. The company has made breakthroughs in vascular intervention and electrophysiology. 1) In 21 years, the revenue of coronary artery access business reached 382 million yuan (YoY increased by 96.8%), which benefited from centralized mining and improved market share; In the past 21 years, the income from peripheral intervention business reached 119 million yuan (YoY increased by 80.9%). Overall, the coverage rate and admission penetration rate of vascular intervention products were further improved. 2) In 21 years, the business income of electrophysiological products reached 233 million yuan (YoY + 46.38%), and nearly 300 new hospitals were implanted, covering more than 800 hospitals. At the same time, 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. At the beginning of the year, the company obtained the product registration certificate of three-dimensional cardiac electrophysiological mapping system and related ablation catheter as scheduled, carried out more than 30 three-dimensional listing roadshows in the National Cardiac Electrophysiological center, completed more than 600 three-dimensional electrophysiological operations in nearly 200 hospitals, and obtained the recognition and interaction of national experts on the newly listed three-dimensional electrophysiological products and brands. In addition, the company’s ability to go to sea has been further strengthened, and the year-on-year growth rate of overseas revenue in 21 years has reached 34.7%. The company continues to make efforts to enter the international market and complete the registration of PCI access products in many countries.
Profit forecast, valuation and rating: the company is a star enterprise of supporting devices driven by two wheels of electrophysiology and coronary pathway, with China’s leading catheter manufacturing technology. Considering the installation progress of three-dimensional mapping catheter in electrophysiology field, the large-scale speed of new products such as nerve and peripheral fields, and the overseas expansion under the influence of the epidemic, the company lowered the EPS forecast of the company from 2022 to 2023 to 4.42 yuan / 6.01 yuan (down 4.9% / 8.0% respectively compared with the last time), increased the EPS forecast of 24 years to 8.18 yuan, and the current price corresponds to 47 / 35 / 26 times of PE from 2022 to 2024, maintaining the “buy” rating.
Risk warning: sharp price reduction of centrally purchased products, medical safety accidents, etc.
