\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 60 Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) )
Event: in 2021, the company achieved an operating revenue of 25.27 billion yuan, a year-on-year increase of 20.18%; The net profit attributable to the parent company was 8 billion yuan, a year-on-year increase of 20.19%; The net profit attributable to the parent company after non deduction was 7.85 billion yuan, a year-on-year increase of 20.04%. In 2022q1, the company realized an operating revenue of 6.94 billion yuan, a year-on-year increase of 20.10%; The net profit attributable to the parent company was 2.11 billion yuan, a year-on-year increase of 22.74%; The net profit attributable to the parent company after non deduction was 2.07 billion yuan, a year-on-year increase of 22.20%.
The life support business still maintained double-digit growth under the high base, and the growth rate of in vitro diagnosis + medical imaging was beautiful: from the perspective of business, benefiting from the continuous development of China’s new infrastructure, the income of life information and support products in 2021 was 11.15 billion yuan, still maintained a year-on-year increase of 11.5% under the high base of the previous year, and a compound growth of more than 30% in two years; With the accelerated recovery of conventional ultrasound procurement and reagent consumption, the revenue of in vitro diagnostic products reached 8.45 billion yuan, a year-on-year increase of 27.1%; The revenue of medical imaging products was 5.43 billion yuan, a year-on-year increase of 29.3%. In 2021, “ruizhilian” added more than 150 new signers; “Ruiying cloud + +” has achieved more than 1100 new installations; Since its listing in 2021, “Meirui Zhijian” has realized the installation of nearly 60 hospitals, of which 60% are tertiary hospitals.
Q1 global routine business recovered rapidly, and China’s new infrastructure continued to drive high performance: in 2022q1, the epidemic situation in China remained stable as a whole, various businesses of the company returned to normality, and overseas routine diagnosis and treatment activities have fully returned to the level before the epidemic. In terms of products, the global procurement demand for ultrasound, blood cells, biochemistry, chemiluminescence and other products has recovered rapidly. We expect the in vitro diagnosis and medical imaging to increase by about 35% year-on-year; Due to the accelerated development of new medical infrastructure in China and the rapid volume of emerging businesses such as AED and minimally invasive surgery, we expect the life information and support business to achieve single digit positive growth.
China’s new infrastructure construction continues, and overseas customers continue to achieve high-end breakthroughs: with the implementation of the 14th five year plan, the construction of hospitals across the country has a rapid momentum. In total, the subsidy funds available for the field of health and health in 2022 are as high as 87.251 billion yuan, including 7.99 billion yuan for the comprehensive reform of public hospitals, 4.84 billion yuan for the capacity-building of medical and health institutions 58.855 billion yuan in subsidies to support basic public health construction and 15.57 billion yuan in subsidies to support the prevention and control of major infectious diseases. In 2021, the company broke through more than 700 new high-end customers in Europe and emerging market countries. In addition, the company also achieved horizontal product breakthroughs of more than 700 high-end customers overseas, laying a solid foundation for the continuous growth of the company’s future performance.
Profit forecast and investment rating: Considering share based payment expenses, we lowered the forecast of the company’s net profit attributable to the parent company from 10.023/12.204 billion yuan to 9.692/11.674 billion yuan in 20222023. It is estimated that the net profit attributable to the parent company in 2024 will be 14.04 billion yuan, corresponding to 41 times, 34 times and 28 times of the current market value of PE respectively, maintaining the “buy” rating.
Risk warning: repeated outbreaks in China; The implementation of volume procurement exceeded expectations, etc.
