\u3000\u3 China Vanke Co.Ltd(000002) 690 Hefei Meiya Optoelectronic Technology Inc(002690) )
Event: the company released its annual report for 2021. In 2021, it realized an operating revenue of 1.813 billion yuan, a year-on-year increase of 21.18%, a net profit attributable to the parent of 511 million yuan, a year-on-year increase of 16.64%, and a net profit deducted from non attributable to the parent of 483 million yuan, a year-on-year increase of 28.19%; Slightly lower than market expectations.
In 2021, the performance maintained a steady growth trend, and the profitability was dragged down by the rise in bulk & shipping prices and exchange losses.
(1) growth analysis: in 2021, the company’s revenue increased by 21.18% year-on-year, and the net profit attributable to the parent company increased by 16.64% year-on-year. The main reasons are: ① attach great importance to the development of the medical industry from a strategic perspective and continuously increase the investment in the medical industry. The growth rate of the medical sector will reach 44.57% in 2021; ② In the context of food security, China’s color sorter achieved accelerated growth, with a growth rate of 15.79%, up 14.67 PCT year-on-year.
(2) profitability analysis: the gross profit margin of sales in 2021 was 51.15%, down 0.66pct year-on-year; This is mainly because the gross profit margin of the color sorter sector decreased by 2.75pct due to the rise in the prices of bulk raw materials and shipping costs, of which the gross profit margin of overseas business decreased by 4.79pct. In 2021, the net interest rate deducting non sales was 26.62%, with a year-on-year increase of 0.62%, mainly due to the decrease of expense rate under the advantage of scale, in which the sales / management / financial expense rate was 12.03%, 4.18% and 0.66% respectively, with a year-on-year increase of + 0.18pct, + 0.29pct and -0.93pct respectively; Among the financial expenses, the company’s foreign sales were settled in US dollars. In 2021, the US dollar continued to depreciate, resulting in the company’s exchange loss of 147733 million yuan, a year-on-year decrease of 45.44%. In 2021, the net profit margin of sales was 28.19%, a year-on-year decrease of 1.10pct; This is mainly because the company invested cash in “smart factory” and “sheet metal coating factory”, resulting in the reduction of financial assets on the account, resulting in a 23.09% decrease in investment income.
(3) analysis of operating capacity and operating cash flow: the company’s operating capacity was further improved. In 2021, the company’s accounts receivable turnover days were 43.23 days, a year-on-year decrease of 12.88 days; The net cash flow from operating activities reached 579 million yuan, a year-on-year increase of 39.30%, a record high. It can be seen that the company’s production and operation are stable.
(4) continue to expand R & D and adhere to high-quality product innovation. At present, the company’s basic conditions for supporting innovation are becoming more and more systematic, and its ability to achieve key breakthroughs is increasing; In 2021, the company’s R & D expenditure was 123 million yuan, with a year-on-year increase of 18.34%, accounting for 6.81% of revenue; There were 537 R & D personnel, with a year-on-year increase of 0.94%, accounting for 40.87% of the company’s total employees, with a year-on-year increase of 1.98pct. The innovation and development of the company has been unanimously recognized by the state, scientific research institutes and industry associations. In 2021, the company has won many honors, such as the second prize of national scientific and technological progress award, the first prize of China industry university research cooperation innovation achievement award, the first prize of Anhui Science and technology award, the top 500 of China machinery in 2021, and the top-level traction ability of the company’s technological innovation has been continuously enhanced. By the end of 2021, the company has 87 authorized and effective invention patents, 256 utility models and 60 appearance designs, with obvious advantages in technology research and development.
(5) adhere to the active cash dividend policy and share the development achievements with investors. In 2021, the company will further strengthen the return. The profit distribution plan is to pay a cash dividend of 540.8 million yuan, and increase 3 shares for every 10 shares to all shareholders with the capital reserve; Since its listing, the company has accumulated cash dividends of more than 3 billion yuan, realizing the harmonious unity of the company’s sustainable development and the reasonable return of shareholders.
The company attaches great importance to the development of medical industry from a strategic perspective, and the sales of oral CBCT has achieved rapid growth.
(1) based on the core technology of photoelectric identification, the company continues to expand the high-end medical image product line. In 2021, the company launched the brand-new “10cm panoramic CT” and “3D orthodontic” models for customers, and launched the best 3D vision of “3D orthodontic (3D) and” 16 cm directional CT “models.
(2) the company gives full play to the comprehensive competitiveness of products, marketing service system and brand advantages to realize the rapid growth of oral CBCT sales. In 2021, the company carried out three large-scale online group purchase activities, and achieved a total sales performance of 2177 units, a record high over the years; Moreover, the cumulative sales of oral CBCT over the years exceeded 10000 units, opening a new era of localization of oral CBCT. In 2021, the company’s high-end medical imaging business achieved a sales revenue of 657 million yuan, a year-on-year increase of 44.57%, accounting for 36.23% of revenue, a year-on-year increase of 5.86pct; The product structure was further optimized and the profitability was improved. The gross profit margin was 59.00%, with a year-on-year increase of 0.79pct. We expect the business in the medical sector to maintain rapid growth.
(3) the company has established a special public hospital sales team, and the market expansion of public hospitals has made positive progress. At present, the company’s public hospital customers include the General Hospital of the southern theater of the people’s Liberation Army, the Stomatological Hospital of Xi’an Jiaotong University, Chongqing People’s Hospital, Tangshan Union Medical College Hospital and many other public hospitals, which has improved the brand influence of the company’s products in the public hospital market.
(4) the company actively expands the global market. In 2021, the company’s oral CBCT was exported to Australia and Africa for the first time, and obtained the market access license of Japan.
China’s color sorters performed well, and the demand for overseas color sorters was dragged down by the rise in shipping prices.
(1) the company continues to innovate products and has established a wide coverage and differentiated product system. In 2021, the company released a new generation of American Asian color sorter, multi spectral material sorter, the second generation of tea sorting Siasun Robot&Automation Co.Ltd(300024) and other innovative equipment produced by intelligent factory; Innovative solutions such as multi-level infrared sorting solution, rice flexible processing solution, full form pet sorting solution and deep learning impurity sorting solution have been released to effectively enhance customer value.
(2) under the background of food security, the demand for food processing is rigid and the demand for color sorter is stable. In 2021, the company achieved a sales revenue of 1.056 billion yuan, a year-on-year increase of 10.32%, and the gross profit margin was 45.95%, a year-on-year decrease of 2.75 PCT; The main reason is that the substantial increase in shipping costs has led to a decline in overseas business income and gross profit margin. The company’s overseas business income was 319 million yuan, a year-on-year decrease of 0.51%, and the gross profit margin was 53.24%, a year-on-year decrease of 4.79 PCT. We expect the color sorter to maintain stable growth.
Maintain the “buy” rating. Taking into account the impact of bulk price rise and dollar depreciation on the company, we lowered the company’s profit forecast. It is estimated that the company’s revenue in 20222024 will be 2.169 billion yuan, 2.594 billion yuan and 3.064 billion yuan respectively (the predicted value in 20222023 before adjustment is 2.281 billion yuan and 2.794 billion yuan respectively); Year on year growth of 19.65%, 19.61% and 18.08% respectively; The net profit attributable to the parent company was 641 million yuan, 794 million yuan and 944 million yuan respectively (the predicted value from 2022 to 2023 before adjustment was 764 million yuan and 941 million yuan respectively), with a year-on-year increase of 25.41%, 23.81% and 19.01% respectively; EPS is 0.94 yuan, 1.17 yuan and 1.39 yuan respectively (the predicted values from 2022 to 2023 before adjustment are 1.13 yuan and 1.39 yuan respectively); According to the share price on March 30, 2022, the corresponding PE is 29.5, 23.8 and 20.0 times respectively. Oral racetrack has the attribute of growth. As the leader of oral digital equipment, the company has a definite premium and maintains the “buy” rating.
Risk warning: covid-19 epidemic prevention and control is not as expected; The development of food testing industry is less than expected; Overseas business development is less than expected; The development of Chinese oral CBCT industry is less than expected; The risk of intensified competition in China’s oral CBCT market; The development of chair side repair system is less than expected; The uncertain impact of exchange gains and losses on the company’s performance; The uncertain impact of other operating income on the company’s performance.
