\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 53 Yantai Zhenghai Bio-Tech Co.Ltd(300653) )
Event: on April 14, 2022, the company announced its Q1 performance in 2022. During the reporting period, the company achieved revenue of 118 million yuan, a year-on-year increase of 15.28%, and net profit attributable to the parent company of 55 million yuan, a year-on-year increase of 25.07%. The performance growth was stable.
Quarterly performance hit a record high and profitability continued to improve. During the reporting period, the company achieved revenue and net profit attributable to the parent company of 118 million yuan and 55 million yuan respectively, both of which hit a quarterly record high and achieved brilliant performance. During the reporting period, the gross profit margin was 89.06%, with a year-on-year decrease of 2.53pct, which was mainly due to the increase of relevant fixed costs and expenses when the new plant was put into use; The net interest rate was 46.73%, with a year-on-year increase of 3.65 PCT, mainly due to the decrease of the expense rate during the period from 6.72 PCT to 37.02%, of which the sales expense decreased from 7.56 PCT to 24.65%. The expense rate of the company was properly controlled and the profitability continued to increase.
The distribution and supplement of data of heavy variety active biological bone is completed, and the market is imminent, with broad market prospects. On November 29, 2021, the company completed the issuance and supplement of active biological bone data. According to the device approval process, the food and drug administration shall issue the final review conclusion within 90 working days (the company’s products are combined with drugs and devices, and the review time does not strictly depend on the above provisions). At present, infine has the best sales performance and the best economic prospect for bony products after the application of infine’s active products on the market. At present, it is expected that bone has a broad sales prospect for bony products
The project reserves are abundant, and the pipeline under research continues to advance. During the reporting period, other varieties under research, such as high swelling degradable hemostatic materials and self etching adhesives (used for bonding light curing composite resin to enamel and dentin), obtained product registration certificates. The dural patch has entered the stage of registration and patching, the urethral repair patch has entered the stage of case enrollment, the guided tissue regeneration membrane is in the stage of clinical trial effect evaluation, and the endometrium is in the stage of process exploration. The gradual implementation of new varieties is expected to become a new performance driver of the company.
Investment suggestion: the penetration rate of dental implants in China has a lot of room to improve, and the field of dental implants will maintain rapid growth. As a high-quality and scarce target in the field of oral consumables in China, the company has benefited from the rapid development of the oral industry and the import substitution of oral repair film, and its performance has increased rapidly. The approval of the company’s active biological bone will open a broad orthopedic market. Other varieties under research, guided tissue regeneration membrane and new generation biofilm are upgraded versions of existing varieties, which will further enhance the competitiveness of products. We expect that the net profit attributable to the parent company from 2022 to 2024 will be RMB 202 / 250 / 311 million respectively, and the corresponding PE will be 39 / 31 / 25 times respectively. We will continue to give the “buy” rating.
Risk prompt: risk of changes in centralized purchase policies; Market competition risk; R & D risk.
