\u3000\u3 Guocheng Mining Co.Ltd(000688) 016 Shanghai Microport Endovascular Medtech (Group) Co.Ltd(688016) )
Performance Brief
On March 29, 2022, the company issued its annual report for 2021. In 2021, the company realized a revenue of 685 million yuan, a year-on-year increase of + 46%; The net profit attributable to the parent company was 316 million yuan, a year-on-year increase of + 47%; The net profit deducted from non parent company was 288 million yuan, a year-on-year increase of + 51%;
In terms of quarters, Q4 company achieved a revenue of 174 million yuan in 2021, a year-on-year increase of + 23%, and a net profit attributable to the parent company of 66 million yuan, a year-on-year increase of + 26%, deducting a net profit not attributable to the parent company of 55 million yuan, a year-on-year increase of + 34%.
Business analysis
The growth rate in the aortic field was stable, and the peripheral drug balloon was released rapidly. The company’s innovative products such as castor, Minos and reewarm PTX have excellent clinical performance, which further improves the company’s competitiveness in the aortic and peripheral vascular intervention market. In 2021, the company’s revenue from aortic stents was 566 million yuan, a year-on-year increase of + 44%; The revenue of peripheral and other categories was 53 million yuan, with a year-on-year increase of + 222%. While maintaining the leading position of traditional aortic business, the newly expanded peripheral business has achieved rapid explosion.
The annual net interest rate remained stable, and R & D investment increased rapidly year-on-year. In 2021, the company’s net interest rate reached 45.79%, a year-on-year increase of + 0.15pct, and the company’s overall profitability remained at a high level. The annual R & D expense rate of the company was 14.94%, and the R & D investment increased by 48.2% year-on-year. The company attached great importance to the improvement of its innovation and R & D ability, increased R & D investment in the field of peripheral artery and venous vascular intervention, and the number of R & D personnel increased significantly.
Abundant reserves of innovative products and smooth progress of projects under research. The new generation of cratos branch aortic covered stent system in the aortic field of the company has obtained the type inspection report, and the new generation of aegis abdominal aortic covered stent system has obtained the animal experiment report; Fishhawk mechanical thrombectomy catheter and vena cava filter in peripheral vein field have obtained type examination report and animal experiment report respectively; In addition, the tips covered stent system has completed animal experiments and submitted for type inspection. The above projects are expected to gradually enter the clinical trial stage in 2022. The reserves of many products under research are sufficient to reflect the company’s strong innovation and R & D strength.
Profit adjustment and investment suggestions
We are optimistic about the company’s competitiveness in the field of aortic stents. At the same time, the layout of peripheral vascular intervention field has great potential in the future. It is estimated that the company’s net profit attributable to the parent company from 2022 to 2024 will be RMB 425, 577 and 767 million respectively, with a year-on-year increase of 35%, 36% and 33%, EPS of RMB 591, 802 and 10.66 respectively, and the current price corresponding to PE is 35, 26 and 19 times, maintaining the “buy” rating.
Risk tips
Risk of medical insurance fee control policy; The risk that the research and development of new products does not meet the expectations; Risk of product promotion failing to meet expectations; Risk of overseas trade friction.
