\u3000\u3 Shengda Resources Co.Ltd(000603) 987 Shanghai Kindly Enterprises Development Group Co.Ltd(603987) )
Event: on March 29, the company released the performance express. In 2021, the company achieved an operating revenue of 3.097 billion yuan, a year-on-year increase of 17.07%; The total profit was 484 million yuan, a year-on-year increase of 23.98%; The net profit attributable to the parent company was 291 million yuan, a year-on-year increase of 43.71%; The net profit deducted from non parent company was 257 million yuan, with a year-on-year increase of 39.23%. The company released the forecast of performance increase in the first quarter. In Q1 of 2022, it is expected to achieve an operating revenue of 842909 million yuan, a year-on-year increase of 25% – 35%, and a net profit attributable to the parent company of 683046728582 million yuan, a year-on-year increase of 50% – 60%.
Winning the bid for centralized purchase in many places and accelerating the penetration into the blank Market: in 2021, China continued to promote the centralized purchase of medical devices. The company’s indwelling needle and functional infusion set were included in the catalogue of centralized purchase of medical consumables and won the bid in centralized purchase in Hebei, Shandong and other places, which not only accelerated the penetration of the company’s products in the blank market, expanded the local market share of the company’s products, but also promoted the entry of other products of the company into the local market to a certain extent. In addition, under the background of the gradual improvement of the Chinese diabetes treatment consciousness, the penetration rate of insulin needle is expected to increase rapidly. The insulin needle of the company is constantly optimized and optimized. The new generation of safe insulin needles will have a high performance price ratio and high performance price ratio, and China is expected to achieve domestic substitution and increase profits for the company.
The disposable injection package was approved and is expected to be quickly put into the market: on October 19, 2021, the company’s product “disposable injection package” was approved by the State Food and Drug Administration for production, and the company’s puncture product line was further expanded. The disposable injection bag was used to fill the face with sodium hyaluronate gel products in dermal tissue. It was the first beauty injection package approved by NMPA in China. With the company’s mature sales channels and first mover advantages, it is expected to rapidly expand its market share in the field of medical and American injection and puncture.
The company is expected to increase the supply of new products at home and abroad at a high speed in the first quarter of 2022 and ensure the stable supply of new products in the international market; In China, relying on the increase in the market share of centralized procurement products, the effective promotion of other medical products and the increment brought by consumer products, we expect that the rapid rise in the demand for virus sampling tubes driven by the epidemic and the rapid growth of medical and American needles will lead to the rapid growth of Q1 performance in 2022 in the first quarter.
Profit forecast and investment rating: considering the continuous expansion and optimization of the company’s product line and the continuous and rapid growth outside China, we raised the forecast of the company’s net profit attributable to the parent company in 2022 / 2023 from 381 / 483 million yuan to 396 / 513 million yuan. The current market value corresponds to 23 / 17 times of PE in 2022 / 2023 respectively, maintaining the “buy” rating.
Risk tip: the promotion of new products is not as expected; Exchange losses; The implementation of centralized purchase policy exceeded expectations.
