\u3000\u30003 Zhejiang Kingland Pipeline And Technologies Co.Ltd(002443) 00244)
In 2021, the company achieved an 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%; The net profit deducted from non parent company was 1.093 billion yuan, with a year-on-year increase of 47.77%. In 2021, the company’s R & D expenditure was 425 million yuan, a year-on-year increase of 33.11%. In 2022, Q1 is expected to realize a net profit attributable to the parent company of about 711813 million yuan, with a year-on-year increase of 110% – 140%.
Key points supporting rating
Non covid-19 business (especially special inspection) and self-produced products deserve attention. In 2021, the revenue from diagnostic services was 6.62 billion yuan, a year-on-year increase of 30.25%, an increase of 127.10% over the same period in 2019; Among them, covid-19 nucleic acid detection revenue was 2.606 billion yuan, non covid-19 diagnostic service revenue was 4.014 billion yuan, a year-on-year increase of 31.97%, an increase of 37.69% compared with the same period in 2019, and special inspection business (molecular diagnosis, pathological diagnosis and mass spectrometry, excluding covid-19) revenue was 1.46 billion yuan, accounting for more than 40% of ICL revenue, a year-on-year increase of 45.85%. The business revenue of precision center increased by 50% year-on-year. The total revenue of product business was 7.321 billion yuan, a year-on-year increase of 21.37%; The business income of self-produced products was 659 million yuan, a year-on-year increase of 75.30%; The business income of channel products was 6.662 billion yuan, a year-on-year increase of 17.78%. In 2022, Q1 special inspection business showed a trend of accelerating volume; The income of self-produced products continued to maintain a high-speed growth trend; The revenue of traditional diagnostic services maintained a rapid growth year-on-year; Covid-19 testing business contributes significantly to performance.
Diagnosis service is customer-centered, deeply ploughing the market, and the soft power continues to improve. 1) Focus on customers and continuously improve the ability of marketing service. 2) Driven by the market, continuously improve the solution capability. Continuous construction of special inspection product line; Deepen the development of cooperation and joint construction mode; Precision center mode continues to replicate. There are 30 precision diagnosis centers in total, and 13 have achieved profitability; In the “Dean + pharmaceutical enterprise” mode, the company has arranged the front-line service business of cro with Guanhe medicine, and established a clinical team with diagnosis to accurately detect the use of drugs after they are listed. 3) Continuously improve the construction of AI, informatization and supply chain capacity, and continuously improve the quality and delivery capacity of AI. 4) Continue to increase R & D investment.
Strong growth of self-produced products, deep cultivation of channel business, and coordinated development of customer and service business. Self produced products. In the field of liquid phase mass spectrometry, continuously expand the independently developed product pipeline and improve the overall solution of clinical mass spectrometry standardization; In the field of nucleic acid mass spectrometry, the joint-stock subsidiary Di spectrum diagnosis is committed to the R & D and production of nucleic acid mass spectrometry detection system and its innovative diagnostic kit; In the field of pathological diagnosis and molecular diagnosis, the holding subsidiary Dean biology has actively explored the market at home and abroad. Channel products. The company continues to promote the construction of large supply chain platform system and provide customers with supply chain value-added services; Deeply tap the customer resources of tertiary hospitals, transform and expand the precision center business of channel companies, and continue to promote the cooperation and integration of products and services; The channel network will sink to the secondary hospital in an orderly manner, and integrate with the inspection business to jointly promote the penetration of regional inspection centers and cooperative joint construction business.
Valuation
According to the company’s performance in 2021 and the covid-19 epidemic situation in China, considering the company’s covid-19 testing related income, we raised our profit expectation. It is estimated that the net profit of the company from 2022 to 2024 will be RMB 1.534 billion, RMB 1.571 billion and RMB 1.630 billion (originally predicted that the net profit from 2022 to 2023 will be RMB 1.177 billion and RMB 1.353 billion), and the corresponding EPS will be RMB 2.47, 2.53 and 2.63, maintaining the buy rating.
Main risks of rating
Industry policy risk; Quality control risk; New product development is less than expected risk; Increased competition, risks, etc
