\u3000\u3 Guocheng Mining Co.Ltd(000688) 389 Shenzhen Lifotronic Technology Co.Ltd(688389) )
Events: 1) the company released the annual report of 2021. The annual revenue was 780 million yuan (+ 40.5%), the net profit attributable to the parent company was 190 million yuan (+ 32.2%), the net profit not attributable to the parent company was 160 million yuan (+ 32.2%), and the net operating cash flow was 180 million yuan (+ 33.5%), and the performance was in line with expectations; 2) The company released the first quarterly report of 2022. Q1 revenue was 210 million yuan (+ 27.7%), net profit attributable to parent company was 67 million yuan (+ 24.5%), and net profit not attributable to parent company was 64 million yuan (+ 30.3%); 3) The company issued the 2022 stock option incentive plan.
In 2021, the revenue growth rate increased quarter by quarter. Quarterly, the revenue of 2021q4 was 230 million yuan (+ 45.8%), the revenue growth rate increased quarter by quarter, and the net profit attributable to the parent company was 68 million yuan (+ 33.4%), and the quarterly growth rate continued to be high. In terms of profitability, in 2021, the gross profit margin was 61.6% (+ 0.7pp), the fourth rate was 38.8%, increasing by 1.3pp, of which the sales expense rate was 15.3% (- 1.1pp), the management expense rate was 4.6% (+ 0.2pp), the R & D expense rate was 20% (+ 1.4pp), the financial expense rate was - 1.2% (+ 0.8pp), and the final net profit attributable to the parent company was 24.5% (- 1.5pp), which was mainly due to the company's increased R & D investment.
In vitro diagnostic reagents have increased significantly, and the development of overseas market channels has been accelerated. By business, the income from treatment and rehabilitation in 2021 was 180 million yuan (+ 14.4%), including 173 million yuan (+ 13.3%) for medical products and 6.93 million yuan (+ 50.7%) for household products; In 2021, the IVD revenue was 590 million yuan (+ 52.6%), of which the IVD equipment revenue was 150 million yuan (- 20.9%), and the IVD reagent revenue was 450 million yuan (+ 118.7%), which was mainly due to the increase in the number of IVD equipment and the increase in the startup rate. In terms of subregions, China's revenue in 2021 was 510 million yuan (+ 8.6%) and foreign revenue was 270 million yuan (236.7%), mainly due to the accelerated development of the company's international sales channels and the improvement of product coverage, which led to a significant increase in product exports.
R & D investment has increased significantly and product pipelines are abundant. In 2021, the company invested 160 million yuan (+ 50.8%) in R & D, which was fully expensed. The company continued to increase the introduction of R & D personnel and launched the R & D of several new IVD and treatment and rehabilitation products. In 2021, there were 47 projects under research, an increase of 19 year-on-year. Among them, the high-speed electrochemiluminescence equipment in the field of in vitro diagnosis has obtained the registration certificate in early 2022, and the number of electrochemiluminescence supporting diagnostic reagents has reached 80 in 2021, laying a solid foundation for the follow-up volume; With rich treatment and rehabilitation product lines, it can provide customized and professional treatment and rehabilitation solutions for clinical internal medicine, surgery, cosmetology and other departments.
Reissue the incentive plan to demonstrate the company's confidence in long-term growth. The company launched the option incentive plan in September 2021. The exercise target value is based on 2020. The corresponding revenue growth rates from 2021 to 2023 are 30%, 60% and 90% respectively, and the corresponding net profit growth rates are 30%, 60% and 90% respectively. In April 2022, the company issued another equity incentive and planned to grant 73 people 3.27% stock options with an exercise price of 20 yuan / share. The target value of exercise conditions is that on the basis of 2021, the corresponding income and net profit growth rates from 2022 to 2024 are 30%, 60% and 90% respectively. On the one hand, it realizes the binding of shareholders' rights and employees' interests, and on the other hand, it also demonstrates the company's confidence in subsequent development.
Profit forecast and investment suggestions. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 250 million yuan, 330 million yuan and 430 million yuan respectively, with corresponding EPS of 0.59, 0.78 and 1.01 yuan and corresponding PE of 26, 20 and 15 times, maintaining the "buy" rating.
Risk warning: the risk of sales promotion falling short of expectations and research and development falling short of expectations
