\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 29 Jafron Biomedical Co.Ltd(300529) )
Event: on April 11, 2022, the company released its annual report for 2021. In 2021, the company realized an operating revenue of 2.675 billion yuan, a year-on-year increase of 37.15%; The net profit attributable to the parent company was 1.197 billion yuan, a year-on-year increase of 36.74%; Net profit deducted from non parent company was 1.137 billion yuan, with a year-on-year increase of 35.17%
The growth rate of irrigation leaders was strong, and Q4 performance accelerated again. In Q4 of 2021, the company realized an operating revenue of 894 million yuan, with a year-on-year increase of 40.63%; The net profit attributable to the parent company was 334 million yuan, a year-on-year increase of 34.66%; The net profit deducted from non parent company was 321 million yuan, with a year-on-year increase of 32.82%. The revenue in a single quarter showed an accelerated growth trend, mainly due to the high-speed and large-scale volume of products after the mitigation of epidemic prevention and control in China, as well as the rapid increase in the proportion of new products such as liver disease and critical illness.
The scale effect drives the cost optimization, and the production process improvement ensures a good profit margin. With the substantial increase of the company’s operating revenue, the dilution effect is becoming more and more obvious. At the same time, the company continues to optimize the expense management, with significant gain effect and continuous improvement of the expense rate. In 2021, the sales expense rate was 22.37%, a year-on-year decrease of 1.64pp, the management expense rate was 11.39% and a year-on-year increase of 1.15pp, which is mainly due to the continuous expansion of the company’s team size and the increase of employee costs, with the financial expense rate of – 0.46% and a year-on-year increase of 0.93. In terms of profit margin, the company continued to improve the production process, optimize the production cost, and still maintained a good profit margin under the influence of negative factors such as commodity prices and freight increases. In 2021, the company’s gross profit margin was 84.97%, a year-on-year decrease of 0.27pp; The net interest rate was 44.70%, a year-on-year decrease of 0.05pp.
The perfusion permeability of nephropathy is expected to be further improved, and the volume of second-line products such as liver disease and critical illness will be accelerated. 1. There is still much room to improve the perfusion permeability of nephropathy, and the core business maintains rapid growth. In 2021, the revenue of the company’s renal perfusion device was 1.724 billion yuan (+ 27.70%). At present, the penetration rate of renal perfusion in China is low, and the frequency of use is mostly once a month; In 2021, the treatment frequency recommended by the Shanghai expert consensus on clinical application was 1-2 times every two weeks. The standard operating procedures for blood purification (2021) officially issued by the National Health Commission also pointed out that perfusion once a week has a significant clearance rate, which provides a strong academic basis and clinical guidance suggestions for perfusion treatment. It is expected that the perfusion permeability of nephropathy in China is expected to continue to improve in the future, and relevant products are expected to contribute considerable performance. 2. Liver disease business accounts for more than 10%, and multi center clinical + strategic catalytic products of “one city, one center” are available in large quantities. In 2021, the revenue of the company’s liver products was 310 million yuan (+ 69.19%). Liver perfusion is another core business of the company’s successful incubation. In recent years, the company has focused on clinical research and marketing promotion to speed up the coverage of end products. The prospective, multi center real-world research padstonestudy led by Nanfang Hospital has been launched, which will provide a higher-level clinical basis for blood purification of liver failure; At the same time, 191 hospitals in China have been awarded the “one city, one center” project Hospital of artificial liver, covering 80% of prefecture level cities. In the future, it will continue to promote the awareness of liver perfusion. 3. The layout of critical illness business was accelerated, and new sepsis products were officially sold. In 2021, the company’s revenue of critical illness products in China was 173 million yuan (+ 63.89%), and the company has covered more than 1000 hospitals and more than 150 teams in the field of critical illness treatment. At present, the company is accelerating the terminal promotion through the construction of demonstration centers, standardized diagnosis and treatment and operation processes. In addition, the company’s innovative product cytokine adsorption column has been officially put on sale, filling the gap of cytokine elimination blood purification products in China, and is expected to achieve rapid growth with the help of existing channels.
The growth rate of R & D investment has exceeded 115%, and several innovative disease projects have been launched. In 2021, the company invested 174 million yuan in R & D, a year-on-year increase of 115.17%, accounting for 6.5% of the company’s total operating revenue; The R & D team reached 604 people, with a year-on-year expansion of about 76%. The company attaches great importance to R & D and innovation, and continues to layout new diseases and products. At present, the company has launched clinical research on multiple innovative projects such as sepsis multicenter clinic, dpmas clinic and perfusion of patients undergoing extracardiac surgery. The new generation of blood dialyzer, blood / plasma adsorber and blood purification equipment have entered the trial production stage, which is expected to further enrich the company’s product pipeline and continue to consolidate the company’s comprehensive competitiveness.
Profit forecast and investment suggestions: according to the annual report data, we adjust the profit forecast and predict that the company’s revenue from 2022 to 2024 will be RMB 3.602 billion, RMB 4.899 billion and RMB 6.406 billion (RMB 3.648 billion and RMB 5.019 billion in the previous 22-23 years), with a year-on-year increase of 35%, 36% and 31%; The net profit attributable to the parent company was RMB 1.599 billion, 2.154 billion and 2.791 billion (RMB 1.587 billion and 2.168 billion in the 22-23 years before adjustment), with a year-on-year increase of 34%, 35% and 30%; The corresponding EPS is 1.99, 2.67 and 3.46 yuan. Considering that the company is a leading enterprise of hemoperfusion in China, the continuous improvement of the penetration rate of kidney disease and liver disease is expected to bring continuous performance increment to the company and maintain the buy rating.
Risk prompt event: single risk of product structure; Market competition risk; Market space measurement deviation risk; The public materials used in the research report may have the risk of information lag or untimely update.
