\u3000\u3 Bohai Water Industry Co.Ltd(000605) 369 Zhejiang Gongdong Medical Technology Co.Ltd(605369) )
Event: the company released the 2021 annual report and the first quarterly report of 2022. In 2021, the company realized revenue of 1.194 billion yuan, a year-on-year increase of 43.95%, net profit attributable to parent company of 311 million yuan, a year-on-year increase of 37.68%, net profit attributable to parent company of 296 million yuan, a year-on-year increase of 37.68%. In the first quarter of 2022, the company realized a revenue of 348 million yuan, a year-on-year increase of + 32.71%, and the net profit attributable to the parent company was 95 million yuan, a year-on-year increase of + 19.77%, and the net profit attributable to the parent company after deducting non profits was 93 million yuan, a year-on-year increase of + 32.84%.
Comments:
In 2021, the company’s performance grew rapidly, and IVD customization business and body fluid collection business contributed the main increment. In 2021, the company’s laboratory testing business revenue was 490 million yuan, with a year-on-year increase of 65.2%, of which the revenue of IVD customization was 380 million yuan, with a year-on-year increase of 169.2%, the revenue of body fluid collection was 400 million yuan, with a year-on-year increase of 119.3%, and the revenue of vacuum blood collection was 230 million yuan, with a year-on-year increase of 25.2%. The three main product lines have maintained rapid growth. After years of layout, IVD supporting business has entered a large-scale period, providing power for the growth of the company. Among the body fluid collection products, the sales increased rapidly due to the increased demand for virus sampling tubes due to the epidemic situation in China.
In the first quarter of 2022, the performance maintained a rapid growth trend and the operating cash flow performance was excellent. The company’s revenue in the first quarter increased by 32.7%, and the net profit deducted increased by 32.8%, continuing the high growth trend in 2021. The company’s raised investment projects were put into use to further expand production capacity, superimpose the growth of sales revenue of the company’s advantageous product lines, and the company’s performance in the first quarter benefited from this.
The rapid development of new business, the company’s future growth can be expected. The company continues to deeply cultivate the advanced technology of IVD customization, and has formed the advantages of mold development and rapid response capability in the IVD customization business, which has global competitiveness. At present, the business has entered the rapid volume period. At the same time, the company has arranged businesses such as scientific research consumables, drug packaging materials and animal consumables, and a number of new products are under development. In the future, the continuous volume of new business will continue to boost the company’s performance growth.
Profit forecast and investment rating: we estimate that the company’s operating revenue from 2022 to 2024 will be RMB 13.8/17.8/2.25 billion respectively, with a growth rate of 15.8% / 28.4% / 26.7%, and the net profit attributable to the parent company will be RMB 395 / 509 / 652 million respectively, with a growth rate of 27.1% / 28.7% / 28.2%, and the corresponding PE will be 39 / 30 / 24x respectively.
Risk factors: the development of new customers is less than expected, and the risk of trade friction.
