\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 60 Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) )
Key investment points
Event: on April 19, 2022, the company released its 2021 annual report and the first quarterly report of 2022. In 2021, the company achieved an operating revenue of 25.270 billion yuan, a year-on-year increase of 20.18%; The net profit attributable to the parent company was 8.002 billion yuan, a year-on-year increase of 20.19%; The net profit deducted from non parent company was 7.85 billion yuan, with a year-on-year increase of 20.04%. In the first quarter of 2022, the company reached 6.943 billion yuan, a year-on-year increase of 20.10%; The net profit attributable to the parent company was 2.105 billion yuan, a year-on-year increase of 22.74%; The net profit deducted from non parent company was 2.072 billion yuan, with a year-on-year increase of 22.20%
Revenue and profit increased rapidly, and the overall performance was in line with expectations. In 2021, routine diagnosis and treatment activities such as outpatient and emergency treatment, physical examination and surgery in China recovered with the control of the epidemic, the new medical infrastructure + high-quality development of Chinese public hospitals continued to promote, and the demand for medical equipment procurement increased, driving the rapid growth of the company’s performance. The revenue of 21q4 company was 5.878 billion (+ 18.46%), the net profit attributable to the parent company was 1.339 billion (+ 3.41%), and the non attributable parent company was 1.306 billion (+ 2.46%). The slowdown in profit growth in one quarter was mainly due to the increase of R & D and other expenses. 22q1 continued its previous good growth trend under the adverse impact of epidemic outbreaks in many places, mainly due to the continuous recovery of various conventional businesses and the rapid breakthrough in overseas markets. Since Q1, China’s anti epidemic situation has been severe, and the construction demand for air film and shelter is tight. The equipment related to the three production lines is expected to further usher in good conditions.
The life information line benefited from the acceleration of new infrastructure, and still achieved a steady growth of 11% under the high base. In 2021, the company’s life information and support business achieved an operating revenue of 11.153 billion yuan (+ 11.47%), achieving steady growth under the high base of the surge in overseas monitoring equipment procurement in 20 years. In 2021, China’s new long-term medical infrastructure plan was officially launched, and the demand for new reconstruction and expansion of hospitals and equipment procurement was rapidly released. It is estimated that the funds available for health subsidies in 22 years will reach 87.251 billion yuan. Several medical construction plans such as EU eu4health have also been launched. We expect that the company’s life information products in multiple application scenarios such as ICU, emergency, infectious diseases and fever clinics are expected to maintain rapid growth with the help of favorable policies in the future.
The amount of routine reagents for in vitro diagnosis recovered significantly, achieving a rapid increase of 27%. In 2021, the company’s in vitro diagnosis business realized an operating revenue of 8.449 billion yuan (+ 27.12%). During the 2020 epidemic, the company installed in many high-end hospitals in Europe and the United States, and the growth rate of routine detection reagents after the epidemic was strong. In the past 21 years, the company has successively launched a variety of heavy new products such as cells, biochemistry, luminescence, blood cells and urine. At the same time, it has acquired hytest, a world-famous IVD raw material supplier, to strengthen the independent control of upstream raw materials, so as to lay a solid foundation for the rapid growth of IVD production line. We expect that the company is expected to further consolidate its dominant position in China and increase its market share by virtue of the technical accumulation of IVD products. At the same time, the continuous development of overseas markets is also expected to contribute considerable performance.
The large volume of high-end models drives the image line to achieve 30% restorative growth. The medical imaging business revenue of the company was RMB 2.61 billion (+ 2.69 billion in 2021). The imaging business has been significantly affected by the epidemic in the past 20 years. With the easing of the global covid-19 epidemic situation, ultrasound procurement has ushered in rebound growth. The company’s traditional laboratory departments and emerging clinical departments in the Chinese market have achieved breakthroughs in high-end products, and the proportion of income of hospitals above level II has been increasing; Overseas achieved a breakthrough in multiple customer groups with i9 and other high-end products. In the future, with the company’s technology accumulation in the field of ultra-high-end ultrasound and the continuous improvement of multi scene application schemes such as maternity and cardiovascular, the company is expected to fully achieve a breakthrough in high-end customer groups and drive the continuous and high growth of image lines.
700 + high-end customers have been added overseas, laying a good foundation for rapid growth in the future. In 2021, the company’s overseas market revenue was 10 billion yuan (+ 0.96%), mainly due to the high base impact caused by large-scale concentration when the overseas epidemic was serious in 20 years. In 21 years, the company added 130 high-end customers in Europe, and about 250 high-end customers achieved a horizontal breakthrough in products; There are more than 600 high-end customers in emerging market countries and more than 450 customers for horizontal products. After the epidemic, the company’s three production lines continued to break through the high-end customer base in Europe, America and emerging markets, the brand strength and influence continued to improve, the growth ceiling further rose, and the future performance is expected to achieve long-term rapid growth.
Profit forecast and investment suggestions: according to the annual report data and the equity incentive assessment objectives, we fine tune the profit forecast. It is estimated that the company’s revenue from 2022 to 2024 will be RMB 30.740 billion, 37.098 billion and 44.541 billion, with a year-on-year increase of 22%, 22% and 20% (before the adjustment, RMB 31.441 billion and 37.761 billion, with a year-on-year increase of + 22.56% and 20.10%), and the net profit attributable to the parent company will be RMB 9.602 billion, 11.600 billion and 13.904 billion, with a year-on-year increase of 20% and 21% 20% (RMB 10.080 billion and RMB 12.268 billion in 22-23 years before adjustment, with a year-on-year increase of + 20.04% and 21.10%), and the corresponding EPS is 7.92, 9.57 and 11.47. Considering that the company is a leading enterprise of medical devices in China and occupies a leading position in the Chinese market, overseas products continue to be sold in large quantities rapidly and maintain the “buy” rating.
Risk warning events: new product R & D risk, policy change risk, increased industry competition risk, etc.
