\u3000\u3 China Vanke Co.Ltd(000002) 901 Double Medical Technology Inc(002901) )
Event:
On March 30, the company released its annual report for 2021. In 2021, it realized an operating revenue of 1.994 billion yuan, a year-on-year increase of 25.68%, and a net profit attributable to the parent company of 673 million yuan, a year-on-year increase of 11.17%. The net profit attributable to the parent company after deduction was 616 million yuan, a year-on-year increase of 11.48%.
Comments:
Steady growth in business and consolidation of existing product advantages
In 2021, the operating revenue of the company's main product lines continued to grow. From the perspective of business: 1) trauma products achieved an operating revenue of 1.128 billion yuan, a year-on-year increase of 14.97%. The company's intramedullary nail system and other three products won the bid in the procurement of orthopaedic trauma consumables in 12 provinces led by Henan Province in July 2021. 2) Spine products achieved an operating revenue of 565 million yuan, a year-on-year increase of 53.14%. In combination with the minimally invasive trend of clinical spinal surgery, the company acquired Beijing ande thinking, accelerated the development, promotion and application of product portfolio, improved technical barriers and consolidated its high-end market position. 3) Minimally invasive surgical products achieved an operating revenue of 150 million yuan, a year-on-year increase of 34.20%. The layout of the company covers the fields of channel series, anastomosis series, ligation series and artificial intelligence, and creates a diversified product line of surgical instruments. 4) Neurosurgical products achieved an operating revenue of 43.82 million yuan, a year-on-year increase of 14.93%. The company's skull repair and reconstruction system has obtained the registration certificate, which will enrich and improve the neurosurgical product line.
The scope of orthopedic centralized collection has been expanded, and the orthopedic medical device industry has developed healthily
On June 21, 2021, the joint procurement office of high-value medical consumables organized by the state issued the announcement of centralized belt procurement of artificial joints organized by the state (No. 1), marking the official launch of national centralized procurement of orthopaedic consumables. In July and September, the 12 provincial Procurement Alliance and the national consumables centralized purchase center led by Henan Province collected orthopedic trauma and joint products respectively, and the company won the bid. At present, multi provincial and provincial alliances have implemented volume procurement for some orthopedic medical devices. The promotion of centralized purchase of orthopaedic consumables is conducive to the long-term and healthy development of the industry and promote the transformation of orthopaedic consumables enterprises to standardization and scale.
Lay out multiple product lines and build a comprehensive medical consumables enterprise
In 2021, the company has obtained three types of registration certificates of implant system in terms of dental product line, and the relevant materials and technologies are at the leading level in China. As the procurement scope of orthopaedic consumables continues to expand, the company will take orthopaedic implantable high-value consumables as its main business, expand the scale and categories of other orthopaedic products, expand the field of Medical High-value consumables, and build a platform company in the field of high-value consumables.
Profit forecast and investment rating: we expect the company's operating revenue from 2022 to 2024 to be RMB 2.584/3.237/4.204 billion respectively, and the net profit attributable to the parent company to be RMB 926/12.86/1.653 billion respectively. Maintain the "buy" rating.
Risk warning: the risk that the R & D progress is less than expected, the sales promotion is less than expected, and the core products fail to win the bid in the volume procurement
