\u3000\u3 Guocheng Mining Co.Ltd(000688) 389 Shenzhen Lifotronic Technology Co.Ltd(688389) )
Event: on April 16, 2022, the company released its annual report for 2021. The company achieved a total operating revenue of 778 million yuan, a year-on-year increase of 40.50%; The net profit attributable to the parent company was 190 million yuan, a year-on-year increase of 32.23%; Deduct non net profit of RMB 163million, with a year-on-year increase of 32.25%. Operating cash flow was 182 million yuan, a year-on-year increase of 33.46%. The basic earnings per share is 0.45 yuan, and it is proposed to distribute a cash dividend of 1.78 yuan (including tax) for every 10 shares.
Among them, in the fourth quarter of 2021, the company realized an operating revenue of 234 million yuan, a year-on-year increase of 45.81%; The net profit attributable to the parent company was 68 million yuan, a year-on-year increase of 33.44%; Deduct non net profit of RMB 62 million, with a year-on-year increase of 38.72%.
On the same day, the company released the report for the first quarter of 2022. The company achieved a total operating revenue of 210 million yuan, a year-on-year increase of 27.70%; The net profit attributable to the parent company was 67 million yuan, a year-on-year increase of 24.36%; Deduct non net profit of RMB 64 million, with a year-on-year increase of 30.27%. The basic earnings per share was 0.16 yuan and the operating cash flow was 19 million yuan, with a year-on-year increase of 36.30%.
In addition, the company issued the 2022 stock option incentive plan (Draft), which plans to grant 13.8 million stock options to 73 incentive objects, and the exercise price (including the reserved exercise price) is 20.00 yuan / share. On the basis of 2021, the target growth rates of operating revenue and net profit (net profit attributable to the parent excluding the impact of share based payment expenses) in 2022, 2023 and 2024 are 30%, 60% and 90% respectively.
The core series of products have been continuously enriched and improved, and the market competitiveness has been continuously strengthened
(1) innovation of treatment and rehabilitation product line. In 2021, the company's income from treatment and rehabilitation was 180 million yuan (+ 14.43%), and the gross profit margin was 68.46% (- 7.01pct); Among them, medical products were 173 million yuan (+ 13.34%), with a gross profit margin of 69.67% (- 6.85 PCT); Household products are 07 million yuan (+ 50.70%), with a gross profit margin of 38.11% (- 2.53pct).
Focusing on the three markets with huge clinical demand: skin and wound, perioperative period and chronic disease rehabilitation, the company has developed a new generation of series of treatment and rehabilitation products, with 14 new Chinese registration certificates and 2 new CE certification. Medical heating blanket, high flow respiratory humidification therapeutic instrument, high-end pneumatic ballistic shock wave therapeutic instrument and electromagnetic ballistic shock wave therapeutic instrument have been successfully listed. At the same time, it has acquired the holding photoelectric medical beauty enterprise "Shenzhen reneverbright Technology Co., Ltd." to deeply cultivate the field of photoelectric medical beauty and develop the new business sector of consumer medical outside the hospital.
(2) keep improving the in vitro diagnostic product line. In 2021, the company's in vitro diagnosis revenue was 592 million yuan (+ 52.60%), with a gross profit margin of 60.93% (+ 5.43pct); Among them, the reagent is 447 million yuan (+ 118.73%), and the gross profit margin is 66.69% (- 4.87 PCT); The equipment is 146 million yuan (- 20.86%), and the gross profit margin is 43.25% (+ 5.59pct).
In 2021, the company added 53 Chinese medical device registration certificates and 38 CE certifications. ① The company innovatively developed a dual detection mode hemoglobin analyzer, which can be used for glycosylated hemoglobin detection and thalassemia screening through one key switching, and has been successfully listed and sold in the international market; ② The company has added 37 medical device registration certificates of electrochemiluminescence detection reagents, and the total number of medical device registration certificates of electrochemiluminescence detection reagents has reached 80; ③ The company has rapidly achieved independent research and development and production in the field of molecular diagnosis related products and POCT related products, and a series of products have been successfully listed and sold in overseas markets.
R & D investment increased significantly, and the net interest rate decreased by 1.56 PCT year-on-year
In 2021, the company's net profit margin on sales was 24.44%, a year-on-year decrease of 1.56 PCT, mainly due to the R & D expense rate of 20.02%, a year-on-year increase of 1.36 PCT. The R & D expenditure in 2021 was 156 million yuan, with a year-on-year increase of 50.79%, mainly due to: ① the introduction of a large number of R & D personnel: in 2021, the company's R & D personnel increased by 131 compared with the same period last year, with a year-on-year increase of 37%; The new wage expenditure was 287473 million yuan, an increase of 57.28%. Among them, affected by covid-19 epidemic, only medical and maternity insurance was paid according to the social security policy unit from February to December 2020. The original policy was restored in January 2021, and the annual pension insurance was about 8.92 million yuan, a year-on-year increase of 2147%. ② Start a number of new R & D projects: 47 projects under research in 2021, with a year-on-year increase of 19; The consumption of R & D materials increased by about 1.27 million yuan year-on-year, an increase of 4%. ③ New product registration, project inspection, clinical trials and consulting and evaluation activities increased significantly: the relevant expenses in 2021 were 11.58 million yuan, an increase of 4.27 million yuan compared with 2020, with an increase rate of 58.44%. ④ Increase academic exchange activities: the number of trips of R & D personnel in 2021 increased significantly compared with the same period last year, and the travel expenses related to R & D activities increased significantly, with an increase of 810000 yuan, an increase of 88%.
Profit forecast and investment rating: Based on the analysis of the company's core business segment, we expect the operating revenue from 2022 to 2024 to be 1.033 billion / 1.352 billion / 1.736 billion respectively, with a year-on-year growth rate of 32.78% / 30.88% / 28.40% respectively; The net profit attributable to the parent company was 253 million / 331 million / 437 million respectively, an increase of 32.69% / 31.02% / 32.21% respectively; EPS is 0.60/0.78/1.04 respectively, corresponding to 26 times PE in 2022 according to the closing price on April 15, 2022. Maintain the "buy" rating.
Risk warning: the risk of competition intensifies, the risk of non renewal of major customer cooperation agreements, the risk of new product development failure, and the long-term and recurrent risks of New Coronavirus pneumonia.
