\u3000\u30003 Zhejiang Kingland Pipeline And Technologies Co.Ltd(002443) 00244)
Event: on April 16, 2022, the company released its annual report for 2021, realizing an annual operating revenue of 13.083 billion yuan, a year-on-year increase of 22.85%; The net profit attributable to the parent company was 1.163 billion yuan, a year-on-year increase of 44.83%; Deduct non net profit of RMB 1.093 billion, with a year-on-year increase of 47.77%. The operating cash flow was 1.318 billion yuan, a year-on-year decrease of 14.82%. The basic earnings per share is 1.8742 yuan, and it is proposed to distribute a cash dividend of 1.35 yuan (including tax) to all shareholders for every 10 shares. Among them, the provision for impairment loss of long-term equity investment was 271 million yuan.
On the same day, the company released the performance forecast for the first quarter of 2022. It is estimated that the net profit attributable to the parent company in the first quarter will be 711 million yuan – 813 million yuan, with a year-on-year increase of 110% - 140%; It is estimated that the impact of non recurring profits and losses on the net profit attributable to the parent company is about 5 million yuan – 8 million yuan.
Covid-19 nucleic acid detection contributes 2.6 billion revenue, and special detection accounts for more than 40% of ICL revenue
(1) diagnostic service business: in 2021, the total revenue of the company's diagnostic service business was 6.62 billion yuan, an increase of 30.25% over the same period last year and 127.10% over the same period in 2019. ① Covid-19 nucleic acid detection revenue was 2.606 billion yuan. By the end of 2021, about 69 million tubes and 223 million people had been tested for nucleic acid; Among them, about 49 million covid-19 nucleic acid tests were completed in 2021, with more than 128 million people tested. ② Excluding covid-19 nucleic acid detection revenue, the diagnostic service business revenue was 4.014 billion yuan, an increase of 31.97% over the same period last year and 37.69% over the same period in 2019. ③ Excluding covid-19 nucleic acid detection business, the revenue of special detection business (molecular diagnosis, pathological diagnosis and mass spectrometry) reached 1.46 billion yuan, accounting for more than 40% of ICL revenue, with a year-on-year increase of 45.85%.
In addition, the company added 10 precision diagnosis centers, including 2 in the province and 8 outside the province. All precision centers operate well, with a total of 30 precision diagnosis centers, and 13 have achieved profitability. The business revenue of this model has increased by 50% over the same period last year.
(2) diagnostic product business: with the help of the nationwide channel network, the company's diagnostic product business achieved a total revenue of 7.321 billion yuan, an increase of 21.37% over the same period last year. ① The business income of self-produced products was 659 million yuan, an increase of 75.30% over the same period last year; ② The business income of channel products was 6.662 billion yuan, an increase of 17.78% over the same period last year.
Affected by the decline in the price of covid-19 nucleic acid detection, the gross profit margin of relevant businesses of the company decreased slightly
In 2021, the gross profit margin of the company's sales was 38.26%, a year-on-year increase of 0.04pct, of which the gross profit margin of diagnostic service business was 48.64%, a year-on-year decrease of 0.31pct; The gross profit margin of channel product business was 23.94%, a year-on-year decrease of 1.12pct (offset by internal correlation).
In terms of period expenses, the sales expense ratio increased by 0.18pct to 9.25%, the management expense ratio increased by 1.28pct to 8.47%, the R & D expense ratio increased by 0.25pct to 3.25%, the financial expense ratio decreased by 0.18pct to 1.66% and the comprehensive net interest rate increased by 1.29pct to 11.34%. Among them, Hangzhou inspection subsidiary achieved an operating revenue of 6.436 billion yuan, a net profit of 1.104 billion yuan, and a year-on-year decrease in net interest rate of 0.91pct to 17.16%.
Profit forecast and investment rating: Based on the analysis of the company's core business segment, we predict that the operating revenue from 2022 to 2024 will be 15.064 billion / 14.134 billion / 14.397 billion respectively, with a year-on-year growth rate of 15.14% / - 6.17%% / 1.86% respectively; The net profit attributable to the parent company was 1.513 billion / 1.242 billion / 1.199 billion respectively, an increase of 30.13% / - 17.91% / - 3.52% respectively; EPS is 2.44/2.00/1.93 respectively, corresponding to 11 times PE in 2022 according to the closing price on April 15, 2022. Maintain the "buy" rating.
Risk warning: goodwill impairment risk; Risk of regulatory policy changes; Market competition risk; Risk of price decline of inspection items; The volatility risk of New Coronavirus pneumonia outbreak.
