\u3000\u3 Guocheng Mining Co.Ltd(000688) 050 Eyebright Medical Technology(Beijing) Co.Ltd(688050) )
Events: 1) the company released its annual report for 2021. The annual revenue was 430 million yuan (+ 58.6%), the net profit attributable to the parent company was 170 million yuan (+ 77.5%), the net profit not attributable to the parent company was 150 million yuan (+ 66.9%), and the cash flow from operating activities was 220 million yuan (+ 77.8%), which was in line with the previous performance forecast range. 2) The company expects that the revenue in the first quarter of 2022 will be 127 ~ 136 million yuan (+ 50.5% ~ 61.1%), and the net profit attributable to the parent company will be 55 ~ 62 million yuan (+ 52.8% ~ 72.2%), Q1 exceeding the market expectation.
In 2021, the performance increased rapidly and the profitability continued to improve. Considering the company’s share based payment fee of RMB 13.25 million in 2021, the growth rate of endogenous performance is much higher than the apparent growth rate. By quarter, the revenue of Q1 / Q2 / Q3 / Q4 in a single quarter was 0.84/1.22/1.19/108 billion yuan (+ 222% / + 57.5% / + 52.2% / + 18.2%), and the net profit attributable to the parent company in a single quarter was 0.36/0.55/0.49/0.31 billion yuan (+ 954.3% / + 62.5% / + 57% / + 11.2%), which affected the business growth to some extent due to the repeated epidemic in the fourth quarter. From the perspective of profitability, the gross profit margin in 2021 is 84.3% (+ 0.4pp), which is basically stable, and the fourth rate is 43.8%, which is basically the same as that in 2020. The increase of investment income superimposed with the decrease of comprehensive tax rate, and finally the net profit attributable to the parent company is 39.6% (+ 4.2pp). The profitability continues to improve.
OK mirror continues to increase in volume, and 2022q1 predicts high performance growth. In terms of business, 1) the revenue of intraocular lens in 2021 was 304 million yuan (+ 36.4%), accounting for 70.3%. On the one hand, because the pilot provinces of intraocular lens belt procurement were selected, the end customers and sales volume increased steadily. On the other hand, the recognition of the company’s intraocular lens in the overseas market increased, and the international sales revenue increased significantly; The sales volume of intraocular lens reached 701000 (+ 40.3%), and the gross profit margin was basically stable. 2) in 2021, the revenue of OK lens was 107 million yuan (+ 159.5%), accounting for 24.8%, and the sales volume was 215000 pieces (+ 110.6%). With the decrease of trial pieces, the gross profit margin increased by 9.2pp to 84%. With the unique product design and diversified market promotion, the sales volume of corneal shaping lens is expected to continue to grow rapidly and the profitability will continue to improve. The company predicts that the growth range of 2022q1 performance is + 52.8% ~ 72.2%. It is expected that the OK mirror will continue to increase in volume, and the high growth of performance in the next few years can be expected.
There are abundant innovative platforms and pipelines for ophthalmic instruments. The company pays attention to R & D investment. In 2021, R & D investment accounted for 15.3% of operating revenue. In 2021, several new models of single piece hydrophobic aspheric intraocular lens aw-uv and foldable one-piece intraocular lens were approved for listing. Multifunctional hard contact lens care solution has been approved for sale in three types of medical device registration certificate in February 2022, and aspheric diffractive multifocal intraocular lens has entered the product registration stage, Products such as lens intraocular lens and sodium hyaluronate gel are steadily promoting clinical trials. The new aspheric triple focal astigmatism correction intraocular lens has entered the clinical trial stage. In March 2021, we acquired three fields of color soft hydrophilic contact lens registration, which has been put into operation. At the same time, our company has independently developed high oxygen silicone hydrogel contact lenses. The abundant pipeline under research builds the core barrier of the company’s ophthalmic instrument innovation platform and ensures the long-term high growth.
Profit forecast and investment suggestions. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 240, 330 and 460 million yuan respectively, the corresponding EPS will be 230, 317 and 441 yuan respectively, and the corresponding PE will be 67, 49 and 35 times respectively. The company has outstanding endogenous growth, abundant pipeline under research, superimposed the platform value of the innovation leader of ophthalmic devices, and maintained the “buy” rating.
Risk warning: the price reduction of volume purchase exceeds the expectation, the R & D is less than the expectation, and the product volume is less than the expectation.
