\u3000\u3 Guocheng Mining Co.Ltd(000688) 617 Apt Medical Inc(688617) )
Key investment points
Event: the company achieved a total operating revenue of 829 million yuan in 2021, with a year-on-year increase of 72.85%; The net profit attributable to the parent company was 7.08 billion yuan, a year-on-year increase of 8.7%; Net profit deducted from non parent company was 168 million yuan, with a year-on-year increase of 71.45%. In Q4 alone, the company achieved a revenue of 235 million yuan, a year-on-year increase of 49.98%, and a net profit attributable to the parent company of 46 million yuan, a year-on-year increase of 17.07%.
The company's performance met expectations, and the revenue of coronary access and intervention products increased rapidly. In 2021, the company's coronary artery access business realized a revenue of 382 million yuan, a year-on-year increase of 96.76%; The revenue of interventional product lines was 119 million yuan, with a year-on-year increase of 80.97%. The revenue growth of coronary artery access and interventional product lines was faster than that of the overall business; The revenue of electrophysiology business was 233 million yuan, with a year-on-year increase of 46.39%.
The gross profit margin remained stable and the expense rate was well controlled. In 2021, the gross profit margin of the company's main business was 69.49%, a decrease of 0.87pct compared with the same period last year, of which the gross profit margin of coronary artery access business was 66.49%, a decrease of 2.32pct compared with the same period last year; The gross profit margin of intervention product line was 67.87%, an increase of 0.30pct over the same period last year; The gross profit margin of electrophysiology business was 78.28%, an increase of 1.40pct over the same period last year. In terms of period expense rate, the overall period expense rate decreased by 0.32pct in 2021, of which the sales expense rate was 23.69%, a decrease of 0.04pct compared with the same period last year; The management expense ratio was 6.65%, down 1.60 PCT from the same period last year; The financial expense ratio increased by 0.04pct to 0.08% compared with the same period last year.
Pay attention to R & D investment and continuously enrich the product line, so as to lay the foundation for the medium and long-term development of the company. In 2021, the company invested 135 million yuan in R & D, with a year-on-year increase of 87.58%, and the R & D expense rate increased by 1.28 PCT to 16.28% compared with the same period last year. In 2021, the magnetic positioning cold saline perfusion radiofrequency ablation electrode catheter, three-dimensional cardiac electrophysiological mapping system, anchored balloon expansion catheter, hydrophilic coating contrast catheter and guide sheath independently developed by the company obtained the product registration certificate of medical devices respectively, laying a foundation for the medium and long-term development of the company.
Profit forecast and investment rating: considering the uncertainty of the impact of the epidemic and centralized mining on the company's performance, we adjusted the company's net profit attributable to the parent company from 314 / 438 million yuan to 303 / 416 million yuan in 20222023. It is estimated that the net profit attributable to the parent company in 2024 will be 561 million yuan, corresponding to 48 / 35 / 26 times of PE in 20222024, maintaining the "buy" rating.
Risk tips: the risk of new product R & D falling short of expectations, the risk of price reduction exceeding expectations in volume procurement, covid-19 epidemic and other force majeure risks, etc.
