\u3000\u3 Bohai Water Industry Co.Ltd(000605) 369 Zhejiang Gongdong Medical Technology Co.Ltd(605369) )
Event:
The company released the annual report of 2021. The annual revenue was 1.194 billion (year-on-year + 43.95%), the net profit attributable to the parent was 311 million (year-on-year + 37.68%), and the net profit deducted from non attributable to the parent was 296 million (year-on-year + 37.68%). We predicted that the net profit attributable to the parent was 298 million in the early stage, and the performance was in line with expectations. The company plans to pay 13.8 yuan for every 10 shares.
Comments:
IVD business demand expanded, and conventional revenue increased significantly
The company increased market development, and the sales revenue of conventional business reached 1.083 billion yuan, a year-on-year increase of 57.63%. The operating income of experimental detection, body fluid collection and vacuum blood collection system was 491 million yuan, 398 million yuan and 226 million yuan respectively, accounting for 93.88% of the company's main business income. Among them, the experimental detection and body fluid collection increased by 65.17% and 119.30% year-on-year respectively, mainly due to the sharp increase in the sales of IVD matching business under the domestic direct sales mode, with a year-on-year increase of 169.15%.
The production capacity of raised investment is gradually released, and the profitability is expected to be improved
In 2021, the company's gross profit margin was 44.40%, a year-on-year decrease of 2.68%, mainly due to the year-on-year decrease of 20.59% in the operating revenue of epidemic prevention products with high gross profit margin; In addition, before the raised investment project was put into operation, the production capacity pressure was transferred through outsourcing processing, and the production of some low-end products was transferred to qualified suppliers. The manufacturing cost increased by 62.04% over the same period of last year. With the output of the company's raised investment project, the outsourcing processing cost decreased and the production capacity further increased. In 2021, the company's production of vacuum blood collection system increased by 40.66% year-on-year, and medical consumables and packaging products increased by 47.99% year-on-year, providing guarantee for sustained and rapid growth.
Maintain "buy" rating
The company's capacity relocation has been basically completed, and it is expected to usher in capacity improvement in 2022; After long-term cooperation, IVD customized products improve customer stickiness and gradually increase volume. We expect the net profit of the company in 22-24 years to be 400 / 513 / 656 million respectively, corresponding to the closing price on April 15, PE is 39 / 30 / 24 times and cagr28.5% in three years 06%, maintaining the "buy" rating.
Risk tips
Production capacity release is lower than expected, market development risk, medical related policy risk and repeated epidemic risk
