\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 53 Yantai Zhenghai Bio-Tech Co.Ltd(300653) )
Event: the company released the first quarterly report of 2022, and achieved revenue of 118 million yuan, a year-on-year increase of + 15.28%, net profit attributable to the parent company of 55 million yuan, a year-on-year increase of + 25.07%, net profit attributable to the parent company of 55 million yuan after deduction, a year-on-year increase of + 27.55%.
Comments:
The company overcame the impact of the epidemic and continued to maintain rapid growth in performance. During the reporting period, the covid-19 epidemic in China seriously affected the normal development of medical services in the Yangtze River Delta region of China. In this unfavorable situation, the company overcame the serious disturbance of the epidemic and still achieved rapid growth in performance. The operating revenue increased by 15.28% year-on-year, the net profit attributable to the parent increased by 25.07% year-on-year, the net profit attributable to the parent increased by 27.55% year-on-year, and the profit side still maintained rapid growth.
The company’s expense rate continued to optimize and the net interest rate continued to increase. During the reporting period, the gross profit margin of the company was 89.06%, a year-on-year decrease of 2.53 PPS, the net profit margin was 46.73%, a year-on-year increase of 3.66 PPS, and the expense rate during the period was 37.02%, a year-on-year decrease of 6.72 PPS. Among them, the sales expense rate was 24.65%, a year-on-year decrease of 7.56 PP, the management expense rate was 6.15%, a year-on-year increase of 0.42 PP, and the financial expense rate was – 0.21%, a year-on-year increase of 0.41 PP. The R & D expense rate was 6.43%, with a year-on-year increase of 0.01 PP. Through the continuous optimization of the company’s expense rate, the company’s profit can grow rapidly.
New products continue to be launched, and the heavy product active biological bone is expected to be on the market in the middle of the year. During the reporting period, the company’s product self etching adhesive was approved for listing. This product is suitable for the bonding of light curing composite resin with enamel and dentin, which will further enhance the company’s competitive advantage in the oral field in the future. In addition, the company is expected to be officially listed as a bioactive product on November 29, 2021.
Profit forecast: from 2022 to 2024, we expect the company’s operating revenue to be 506 / 655 / 833 million yuan respectively, with a growth rate of 26.6% / 29.4% / 27.1%, the net profit attributable to the parent company to be 212 / 269 / 345 million yuan respectively, with a growth rate of 26.0% / 26.4% / 28.3%, and the corresponding PE to be 37 / 29 / 23x respectively, maintaining the buy rating.
Risk factors: the centralized purchase policy of medical companies exceeded expectations, and the epidemic situation in China repeatedly affected normal sales.
