\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 53 Jiangxi Sanxin Medtec Co.Ltd(300453) )
Event:
On April 19, 2022, the company disclosed the first quarter report of 2022. In the first quarter of 2022, the company realized an operating revenue of 321 million yuan, a year-on-year increase of 30.61%. The net profit attributable to shareholders of listed companies was 474475 million yuan, a year-on-year increase of 39.37%. The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 467716 million yuan, a year-on-year increase of 53.22%. The basic earnings per share is 0.1204 yuan.
Event comments:
The demand for vaccine syringes in foreign countries increased, and the income of injection products increased significantly compared with the same period
Since August 2021, the production capacity of vaccine syringes has been expanded. At present, the production capacity is about 600 million pieces / year. In the second half of 2021, the company’s revenue from injection products was about 127 million yuan, of which the sales volume of vaccine syringes was about 270 million, an increase of about 154.7% over the first half of 2021. In the first quarter of 2022, the vaccine syringe orders of the company are full and the production capacity is fully utilized. It is expected that the injection business of the company will continue the trend in the second half of 2021. Moreover, most of the UN vaccine syringe orders are medium and long-term orders, and the price is stable. The average price is 0.3 yuan / piece, which is higher than the price of the company’s ordinary disposable syringe products (about 0.12-0.15 yuan / piece), which also drives the increase of the company’s net profit margin. In the first quarter of 2022, the gross profit margin of the company’s sales was about 35.76%, and the net profit margin of sales was about 15.66%, both of which increased by 3.09 percentage points and 0.46 percentage points respectively compared with 2021q1.
The company’s hemodialysis business line has a wide layout, and the growth rate of Q1 hemodialysis line is expected to be about 17%
The company has a wide range of products in hemodialysis business, including dialysis tube, dialysate / powder, dialyzer and dialysis machine. The company has stepped up the expansion of hemodialysis business, and hemodialysis business is related to the life of dialysis patients, which is urgent. Even in the case of serious epidemic, it is also put in the first place in the epidemic prevention policy. We expect the company’s hemodialysis business to continue the past growth trend. At the same time, considering the adverse effects of Q1, especially the transportation caused by the epidemic all over the country in March, we expect the growth rate of the company’s Q1 hemodialysis line to be about 17%.
Moreover, in order to further expand the market influence of the company’s hemodialysis series products, the company plans to use its own funds and bank loans of RMB 568 million to build a new “hemodialysis series product R & D and production base project” in Nanchang, Jiangxi Province. The construction period of the project is from March 2022 to December 2024. It is expected that after completion, the company’s dialyzer capacity will be further expanded. With the help of the channel advantages established by the company in the field of dialysis tubes and dialysate, The company’s dialyzers and dialysis machines will also further increase their market share.
Investment advice
We expect that the company’s revenue from 2022 to 2024 will be 1.609 billion yuan, 2.022 billion yuan and 2.516 billion yuan respectively, with revenue growth rates of 38.2%, 25.6% and 24.4% respectively. The net profit attributable to the parent company from 2022 to 2024 will be 206 million yuan, 252 million yuan and 306 million yuan respectively, with growth rates of 32.4%, 22.1% and 21.3% respectively, corresponding to 23x, 18x and 15x PE from 2022 to 2024. Considering that there is still a large space for import substitution in the hemodialysis industry, especially dialysis machines and dialyzers, the company’s performance in 2022 is significantly thickened and the long logic is clear. We cover it for the first time and give it a “buy” rating.
Risk tips
The company’s hemodialysis equipment sales fell short of expectations.
Vaccine syringe orders may not be as expected.
Risk of significant rise in the price of bulk raw materials.
Risk of product price decline.
