\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 53 Yantai Zhenghai Bio-Tech Co.Ltd(300653) )
Matters:
The company released the first quarterly report of 2022, realizing a revenue of 118 million yuan, a year-on-year increase of 15.28%; The net profit attributable to the parent company was 55million yuan, a year-on-year increase of 25.07%; The net profit attributable to the parent company after non deduction was 55 million yuan, a year-on-year increase of 27.55%.
Ping An View:
The performance maintained steady growth, the expenses were well controlled during the period, and the profitability was improved. In the first quarter of 2022, the company realized a revenue of 118 million yuan (+ 15.28%) and a net profit attributable to the parent company of 55 million yuan (+ 27.55%). The company overcame the impact of the epidemic and operated steadily. The gross profit margin was 89.06%, with a year-on-year decrease of 2.53pct, which was mainly due to the increase of cost due to the increase of depreciation and amortization related to production cost when the new plant was put into use; The net interest rate was 46.73%, with a year-on-year increase of 3.65 PCT, mainly due to the continuous optimization of the expense rate. During the reporting period, the sales / management / R & D / Finance rates were 24.65%, 6.15%, 6.43% and – 0.21% respectively, with year-on-year changes of -7.56, + 0.42, + 0.01 and + 0.41pp respectively.
The heavy variety of active biological bone will be on the market soon, with great performance flexibility. The company’s heavy-duty product active biological bone has completed the submission of “supplementary data” on January 29, 2021 and has entered the stage of “main review”. At present, the relevant work is advancing as scheduled. According to the requirements, the State Food and Drug Administration will issue the final review conclusion within 90 working days. Therefore, we expect that the active biological bone will be approved for listing as early as the second quarter, which is expected to become a product with more than 1 billion products and great performance flexibility.
There are abundant pipelines of products under research, and new varieties continue to be launched. The company has strong research and development and independent innovation ability, and the dural patch has entered the stage of registration and evaluation; Urethral repair patch entered the case enrollment stage; The research project “dental restoration materials – general resin” has entered the stage of clinical trial preparation; The “breast patch” project has obtained the registered test report and animal experiment report; Uterine cavity repair membrane entered the preparation stage of clinical trial; The surgical packing sponge has obtained the production license and is in the process of changing production; The acid etching adhesive product has obtained the registration certificate in February this year, and is currently in the process of applying for the production license. New varieties have landed one after another, and the company’s performance is expected to be further released.
Profit forecast investment rating: on the whole, the fundamentals of the company continue to improve. We maintain the company’s forecast of net profit of 223 million yuan, 299 million yuan and 360 million yuan from 2022 to 2024 respectively. The current share price corresponds to 34 times of PE in 2022, maintaining the “recommended” rating.
Risk tips: 1) concentration risk of main products: the company’s main revenue is concentrated in the two products of prosthodontic membrane and dura mater. If the market environment, downstream demand and competition situation of the company’s leading products change significantly in the future, the company’s business performance will be greatly affected; 2) R & D risk: at present, the company has many varieties under research, large R & D investment, many links and long cycle, with certain uncertainty, and there is the possibility of failure or less than expected; 3) Policy risk: the company’s intensive purchase of relevant products may exceed market expectations.
