\u3000\u3 Guocheng Mining Co.Ltd(000688) 366 Shanghai Haohai Biological Technology Co.Ltd(688366) )
Event: the company released its annual report for 2021, realizing an operating revenue of 1.767 billion yuan, a year-on-year increase of 32.61%; The net profit attributable to the parent company was 352 million yuan, a year-on-year increase of 53.10%; The net profit deducted from non parent company was 328 million yuan, with a year-on-year increase of 58.88%. The revenue side basically meets our expectations, and the profit side is lower than our expectations.
The contribution of Ophthalmology, medicine and aesthetics increased, and the recovery of orthopedics and surgery increased steadily. On the revenue side, in 2022, the company’s domestic intraocular lens, ophthalmic viscoelastic agent and orthopedic products recovered rapid growth, and OK mirror, Haimei hyaluronic acid and medical beauty equipment and instruments contributed to the increase of revenue. Sub business: 1) ophthalmology sector achieved revenue of 674 million yuan, accounting for 38.34%, with a year-on-year increase of 19.24%. Among them, the income of intraocular lens was flat, mainly due to the supply shortage of the agent’s imported brands from the second half of 2021 due to the impact of overseas epidemic and natural disasters on upstream suppliers; Ophthalmic viscoelastics, optometric materials and other ophthalmic products recovered and grew rapidly; The revenue of visual terminal products including OK mirror and Yijing was 55.19 million yuan, a year-on-year increase of 889%, bringing significant incremental contribution. 2) Medical cosmetology and wound care achieved an operating revenue of 463 million yuan, accounting for 26.34%, with a year-on-year increase of 91.49%. Among them, the sales revenue of hyaluronic acid product line was 241 million yuan, with a year-on-year increase of 64.59%, mainly due to the recovery from the epidemic and the continuous expansion of the sales volume of the third generation hyaluronic acid “Haimei”; In addition, ouhuameike (holding 63.64%) has consolidated its statements since September 17, 2021, and its products RF and laser equipment have contributed an incremental income of 94.88 million yuan. 3) The orthopedics sector achieved a revenue of 402 million yuan, accounting for 22.86%, with a year-on-year increase of 21.23%. The product accounts for more than 40% of the market share of the industry, mainly recovering from the epidemic to a steady growth higher than the growth rate of the industry. 4) The revenue of anti adhesion and hemostatic products reached 193 million yuan, accounting for 10.97%, with a year-on-year increase of 11.94%. The overall revenue returned to the pre epidemic level and is expected to achieve steady growth.
Due to the price reduction of intraocular lens centralized purchase and the adjustment of medical and American income structure, the gross profit margin decreased steadily and slightly, and the net profit margin was affected by the growth of R & D expenses and one-time amortization expenses. In 2021, the company’s gross profit margin and net profit margin were 72.10% and 19.65% respectively, with year-on-year changes of -2.83pct and + 2.66pct respectively. The company’s gross profit margin decreased mainly due to: 1) the price of some models of intraocular lens decreased in the belt purchase area; 2) Completed the acquisition of the equity of ouhuameike and its subsidiaries. Compared with the original business of the company, the gross profit margin of its medical and American equipment and instrument products is lower, and the accounting treatment of inventory is lower. The overall gross profit margin is about 1.26pct; 3) The price of “Haiwei” hyaluronic acid has been lowered to maintain the product positioning. In the future, with the increase of the proportion of high-end crystals and high-end medical and American products, the gross profit margin is expected to increase. In 2021, the company’s R & D expenses increased by 33% year-on-year. The one-time amortization expenses arising from M & A projects have a certain impact on the net interest rate. With the relative stability of R & D expenses, the company’s profit side is expected to continue to improve.
Profit forecast and investment rating: considering the impact of the epidemic, we adjusted the net profit attributable to the parent company from 562 / 658 million yuan to 531 / 618 million yuan in 20222023, and it is expected to be 710 million yuan in 2024. The PE corresponding to the current stock price is 32 / 28 / 24x respectively. With the stable price and expansion of intraocular lens, the listing of OK mirror product series and the large-scale growth of “Haimei” hyaluronic acid, the company’s performance is expected to accelerate growth and maintain the “buy” rating.
Risk warning: the market promotion of new products may not be as expected; Repeated outbreaks; Policy uncertainty
