\u3000\u3 Guocheng Mining Co.Ltd(000688) 301 Iray Technology Company Limited(688301) )
Key investment points:
Iray Technology Company Limited(688301) issue the annual report of 2021. In 2021, the company achieved an operating revenue of 1.187 billion yuan, a year-on-year increase of 51.43%; The net profit attributable to the shareholders of the parent company was 484 million yuan, a year-on-year increase of 117.79%; The non net profit attributable to the shareholders of the parent company was 342 million yuan, a year-on-year increase of 72.29%; The basic earnings per share is 6.67 yuan, and it is proposed to distribute a cash dividend of 22 yuan (including tax) for every 10 shares.
The annual report is growing rapidly, static products are growing steadily, and new fields such as dynamic products, dentistry and industry are gradually developing
In 2021, the company achieved an operating revenue of 1.187 billion yuan, a year-on-year increase of 51.43%; The net profit attributable to the shareholders of the parent company was 484 million yuan, a year-on-year increase of 117.79%, deducting 342 million net profit not attributable to the parent company, a year-on-year increase of 72.29%. High performance growth.
In the revenue structure of the company in 2021, the revenue of static X-ray detector was 749 million, with a year-on-year increase of 24.59%, accounting for 63.11% of the main revenue; The revenue of dynamic X-ray detector was 377 million, with a year-on-year increase of 171.94%, accounting for 31.75% of the main revenue.
In 2021, new major dental and industrial customers were successfully introduced, with dental sales revenue exceeding 200 million and industrial sales revenue exceeding 150 million.
In 2021, the proportion of the company’s revenue in China and abroad was 57.85% and 37.0% respectively. The proportion of revenue outside China was about 6:4, which was roughly the same as that in the past few years.
The company is a leading domestic company of flat panel detector with global competitiveness. In 2019, the company’s market share in the global medical and veterinary medical X-ray detector was 12.91%. In 2021, the company’s operating revenue reached 1.187 billion yuan, an increase of 117.42% over that in 2019, and its market share in the global medical and industrial X-ray detector market has been further consolidated and improved.
The gross profit margin and non net profit margin of the company increased slightly, with strong profitability
In 2021, the gross profit margin of the company’s overall sales was 55.25%, with a year-on-year increase of 3.45pct; Deducting non net interest rate of 28.79%, with a year-on-year increase of 3.49pct. In 2021, the company’s weighted roe was 17.11%, down 4.4pct from last year.
In 2021, the gross profit margin of main products was stable at more than 50%, including 52.37% for static products and 65.88% for dynamic products. High gross profit margin and high net profit margin indicate that the company’s products have strong profitability. In 2021, the company’s net operating cash flow was 248 million, a year-on-year decrease of 5.34%.
The company continued to invest in research and development, increased customer expansion, and made great breakthroughs in new fields such as dentistry and industry
In 2021, the number of R & D personnel of the company increased by 58%, and the R & D investment was 1456972 million yuan, accounting for 12.27% of the operating revenue. A total of 55 new types of IP registrations or authorizations were added, including 25 invention patents. The revenue of products using new sensor technology exceeded 200 million yuan.
The company continues to improve the core technology of the detector, increase the investment in new sensor technologies and products such as igzo, CMOS and flexible substrate, deeply tap the needs of existing customers, and continue to strengthen the expansion of new customers and new fields such as dentistry, industry and veterinary. In 2021, new major dental and industrial customers were successfully introduced, with dental sales revenue exceeding 200 million and industrial sales revenue exceeding 150 million.
The company has gradually established a high brand awareness in the industry and reached a good cooperative relationship with well-known image equipment manufacturers at home and abroad. The main customers of Fujitsu Medical Co., Ltd. and KEM Medical Co., Ltd. include Fujitsu Medical Co., Ltd., KEM , KEM ; In the field of Dentistry, the company’s main customers include Hefei Meiya Optoelectronic Technology Inc(002690) , Landsea, berndent, fisson, woodpecker, etc; In the industrial field, the company’s main customers include Guangdong Zhengye Technology Co.Ltd(300410) , Japan United Technology, Baker Hughes Ge and major new energy battery and electronic testing equipment suppliers in China.
Benefiting from the development of new fields such as domestic substitution of medical digital X-ray detectors and industry, the performance has entered a period of rapid growth
With the progress of digital X-ray photography technology, the imaging quality of digital X-ray detector is continuously improved, the imaging speed is continuously accelerated, and the radiation dose is continuously reduced. It has been recognized by clinical institutions and imaging experts all over the world. The X-ray machine with detector as the core component is widely used in various fields of medical treatment and industry. According to statistics, the global market scale of digital X-ray detectors in 2018 was about US $2 billion, of which the market share of medical products accounted for about 77%, and industrial security inspection products contributed to the rest of the market. It is estimated that by 2024, the global market scale of digital X-ray detector will reach 2.8 billion US dollars.
The application of digital X-ray detector is very wide, involving medical treatment, industrial nondestructive testing, safety inspection and other different fields. Through years of research and development, the company has gradually achieved a high market position, constantly cut into new customers and new application fields, and made great breakthroughs. On the one hand, it benefits from the domestic replacement of digital X-ray detectors in the medical industry, on the other hand, it benefits from the expansion of new fields such as dentistry and industry. In addition, the company’s production capacity will be gradually released with the investment and construction of Jiangsu Taicang phase II and Zhejiang Haining production base, and will enter a rapid development stage in the next few years.
Profit forecast and valuation
We predict that the operating revenue of the company from 2022 to 2024 will be 1.594 billion, 2.128 billion and 2.777 billion respectively, and the net profit attributable to the parent company will be 643 million, 852 million and 1.088 billion respectively, and the corresponding PE will be 43.42x, 32.77x and 25.68x respectively, which will continue to maintain the “overweight” rating.
Risk tips: 1: the macro economy is less than expected; 2: The expansion of new fields such as medical treatment and industry is less than expected; 3: The price of raw materials rose and the gross profit margin fell; 4: The progress of the company’s raised investment projects is less than expected; 5: The Sino US trade war continues to deteriorate; 6: Exchange rate fluctuations.
