\u3000\u3 Shengda Resources Co.Ltd(000603) 987 Shanghai Kindly Enterprises Development Group Co.Ltd(603987) )
The performance in 21 years was in line with expectations, and 22q1 showed a high growth level
The company issued the performance express of 2021 and the pre increase announcement of performance in the first quarter of 2022. In 2021, the operating revenue and net profit attributable to the parent company were 30.97 (+ 17.07%) and 291 (+ 43.71%) million yuan respectively, of which the revenue and net profit attributable to the parent company in the fourth quarter were 8.83 (+ 26.72%) and 79 (+ 54.82%) million yuan respectively, which basically met the expectation; The performance in the first quarter of 2022 is expected to increase, and the net profit attributable to the parent company is expected to increase by 50% – 60% year-on-year to 68.30-72.86 million yuan, showing a high growth level.
On the solid foundation of the basic market, all businesses have developed steadily in coordination
As one of the leaders in the field of puncture and infusion in China, with the characteristics of scale effect, leading technology and automatic technology, the company will achieve high quality and price control of the core link “puncture needle” in the field of puncture and infusion, and is expected to benefit from the general trend of increasing industry concentration. We expect that all business segments will develop together on the basis of stable basic market. In the field of puncture and infusion nursing, indwelling needles and insulin needles in domestic sales business will benefit from the promotion of centralized purchase and large-scale offline channels to improve the market share. At the same time, we will strengthen the effective promotion of other products. While ensuring the continuous growth of orders and stable supply, export business will promote the rapid growth of R & D of new products; Medical beauty business, class III Registration Certificate beauty blunt needle fills the compliance gap under China’s huge market demand. The follow-up Shuiguang needle and hair transplant needle are listed one after another. It is expected that they can be quickly and in large quantities in the early channels, and the development increment of diversified business forms of medical beauty can be expected; The sample collection business mainly includes blood collection needles, blood collection vessels, virus sampling tubes, etc. driven by the demand of the post epidemic situation, the product portfolio of basic nursing continues to be enriched. In addition, the intervention business dominated by the subsidiary H-share Shanghai Kindly Enterprises Development Group Co.Ltd(603987) medical equipment is expected to maintain stable growth with full independent development rights.
Profit forecast
To sum up, the company’s performance in 2021 is basically in line with expectations. Taking into account the pre impact of exchange gains and losses and some medical and American business expenses, the company lowered its profit forecast for 2021, maintained an operating revenue of 3.097 billion yuan in 2021, reduced the net profit attributable to the parent company from 304 million yuan to 291 million yuan, lowered EPS from 0.68 yuan / share to 0.66 yuan / share, raised its profit forecast for 20222023, and increased its operating revenue from 3.710/4.414 billion yuan to 3.857/4.502 billion yuan, The net profit attributable to the parent company was increased from RMB 375 / 468 million to RMB 390 / 484 million, and EPS was increased from RMB 0.85/1.06/share to RMB 0.88/1.10/share, corresponding to the closing price of RMB 20.28/share on March 29, 2022. PE was 31 / 23 / 18x from 2021 to 2023, maintaining the “overweight” rating.
Risk tips
The epidemic affects the supply of raw materials and product shipments, the approval and volume of new products are less than expected, the risk of changes in the international situation and exchange rate fluctuations, the risk of loss of core technicians, and the risk of sales being less than expected
