\u3000\u3 Guocheng Mining Co.Ltd(000688) 161 Shandong Weigao Orthopaedic Device Co.Ltd(688161) )
Event:
On March 30, the company released its annual report for 2021. The annual sales revenue reached 2.154 billion yuan, an increase of 18.08% year-on-year; The net profit attributable to the shareholders of the parent company was 690 million yuan, a year-on-year increase of 23.62%; The net profit attributable to the shareholders of the parent company after non deduction was 678 million yuan, a year-on-year increase of 25.79%. In 2021, the company's overall gross profit margin was 81.17%, a slight decrease from 82.36% in the same period last year.
Comments:
The three core businesses grew steadily and the market position of the industry continued to improve
In 2021, the sales revenue of spine products reached 1.02 billion yuan, a year-on-year increase of 24.87%; The sales revenue of trauma products was 609 million yuan, a year-on-year increase of 13.31%; The sales revenue of joint products was 469 million yuan, a year-on-year increase of 15.26%. Spine, trauma and joint products are separated, and their market share ranks first, second and third among Chinese manufacturers. Under the control of effective epidemic prevention measures, medical institutions have resumed normal operation, and the number of operations is on the rise. The company's sales fee was 774 million yuan, with a year-on-year increase of 18.39%, mainly due to the increase of the company's promotion service fee; The R & D cost was 121 million yuan, with a year-on-year increase of 47.00%, mainly due to the increase of R & D registration, inspection and experimental design costs, the increase of R & D personnel, the maintenance of strong sustainable innovation ability and the effective transformation of innovation achievements.
Comply with the market demand and keep pace with the times to create Shandong Weigao Orthopaedic Device Co.Ltd(688161) R & D Innovation Incubation Platform
The company attaches great importance to the renewal and iteration of products and continuously strengthens R & D investment. By the end of 2021, the company and its subsidiaries had 218 class I product filing certificates, 11 class II medical device product registration certificates and 83 class III medical device product registration certificates. The product line has fully covered the subdivided fields of orthopedic implanted medical devices such as spine, trauma, joint and sports medicine. The company will continue to improve the existing product line, introduce new technologies of "digitization, intelligence and minimally invasive" to expand the industrial chain, build Shandong Weigao Orthopaedic Device Co.Ltd(688161) R & D Innovation Incubation Platform relying on the product development strategy of "new technology, new materials and new fields", and launch cost-effective products that meet the needs of the market according to the market trend and clinical feedback.
Take advantage of the "centralized purchase" of Dongfeng, comply with the trend of import substitution, and further improve the market share
The implementation of the national centralized purchase policy is conducive to industry concentration and the improvement of the market share of leading enterprises. As a leading enterprise of orthopaedic medical devices in China, the company actively participated in the centralized bidding and performed well. Its products have won the bid of 12 provincial orthopaedic trauma alliance and the procurement of artificial joint belt organized by the state. The company will pay close attention to the trend of centralized purchase, adjust measures to local conditions, allocate marketing network resources, and ensure the rationalization of supporting expenses of the company and its partners; At the same time, seize the opportunity of import substitution and improve the innovation ability and comprehensive strength of the company's products, which is expected to further improve the market share.
Profit forecast and investment rating: we estimate that the company's operating revenue from 2022 to 2024 will be RMB 2668 / 3311 / 4112 million respectively (the value before 2022 / 2023 is RMB 2970 / 3757 million respectively), and the net profit attributable to the parent company will be RMB 863 / 1081 / 1360 million respectively (the value before 2022 / 2023 is RMB 946 / 1146 million respectively). Maintain the "buy" rating.
Risk tips: policy changes in the pharmaceutical industry, risk of product price reduction, failure of new product promotion to meet expectations, etc
