\u3000\u3 Guocheng Mining Co.Ltd(000688) 366 Shanghai Haohai Biological Technology Co.Ltd(688366) )
Event:
On March 29, the company released its annual report for 2021. In 2021, it realized 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 attributable to the parent company after non deduction was 328 million yuan, a year-on-year increase of 58.88%.
Comments:
The layout of optometry terminals is perfect, and the policy support drives the development of the whole ophthalmology industry chain
The company’s optometry terminal product line is distributed with new products such as corneal shaping lenses and contact lenses, and the sales revenue is 55.188 million yuan. The sales volume of cataract business line products has a good growth momentum. The national eye health plan for the 14th five year plan (20212025) issued by the National Health Commission in January 2022 proposed that the national CSR reached more than 3500 cases, which will continue to drive the growth of performance. In myopia, the company has acquired the exclusive agency distribution rights of all products in Chinese mainland, and achieved sales revenue of 217 million yuan with the help of distribution products, an increase of 57.14% over the same period last year. At the same time, the company’s second-generation room water permeability products have entered the stage of registration and inspection; The self-developed OK mirror based on contamac high oxygen permeable material is about to start the registration application; Acquisition of Hebei Xinshikang and layout of color film market; The new artificial glass project is in the registration and inspection stage. The project won the highest award in the national disruptive technological innovation competition in 2021. Series of heavy products are expected to drive the sustained and rapid growth of ophthalmic business.
Hyaluronic acid series products continue to be high-end, and the territory of medical beauty continues to be rich
In 2021, the company’s sales revenue of medical beauty and wound care reached 463 million yuan, with a year-on-year increase of 91.49%. Benefiting from the rapid development of China’s light medical beauty, the company has continuously integrated industrial resources at home and abroad through acquisition (ouhuameike), investment and cooperation (eirion). With its own strong research and development, production and sales platform of medical biomaterials, the company’s hyaluronic acid, rhEGF and other medical beauty products have shown high restorative growth. The third generation hyaluronic acid product “Haimei” has won wide recognition in the market and contributed to the main revenue increment, The fourth generation has carried out clinical trials; Ouhuameike consolidated its financial statements in September 2021 and improved the layout of RF and laser medical and beauty equipment products. The consolidated financial statements contributed 948754 million yuan of income, and the medical and beauty matrix was constantly enriched.
The early R & D investment has been gradually transformed into business results, and the advantages of industrial chain integration have improved the competitiveness of the company
The R & D and production expenses of the company are expected to increase by 3.2 billion yuan in 2021, bringing a rapid growth of more than 3.1 billion yuan for the R & D and production projects of the company in 2021. The company has realized the industrial chain integration from upstream raw materials to product R & D, production and downstream market sales, and the technical level of main products is leading in the industry. With the advantages of integration, the company can further reduce costs and better understand the market demand and change trend.
Profit forecast and investment rating: due to the impact of covid-19 epidemic on product sales, the profit forecast is slightly lowered. We predict that the company’s operating revenue in 20222024 will be RMB 2.505/30.63/3.635 billion respectively (the previous value is RMB 2.547 (2022e) and 32.96 (2023e)), and the net profit attributable to the parent company will be RMB 5.50/6.51/760 million respectively (the previous value is RMB 6.65 (2022e) and 8.81 (2023e)), maintaining the “buy” rating.
Risk warning: product R & D and commercialization are not as expected; The risk of repeated outbreaks; Risk of product price reduction; Stricter supervision of medical and beauty, etc
