\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 60 Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) )
Key investment points:
Event: the company released its 2021 annual report, realizing an operating revenue of 252695808 million yuan, an increase of 20.18% over the same period of last year; The net profit attributable to the shareholders of the listed company was 80015536 million yuan, an increase of 20.19% over the same period last year. In the first quarter of 2022, the company realized an operating revenue of 69431090 million yuan, an increase of 20.10% over the same period of last year; The net profit attributable to shareholders of listed companies was 2105071900 yuan, an increase of 22.74% over the same period of last year.
Comments:
In 2021, the company achieved revenue of 25.27 billion yuan and maintained good growth. (1) The company’s life information and support business realized an operating revenue of 11.153 billion yuan, a year-on-year increase of 11.47%. Despite the high base pressure in 2020, thanks to the development of China’s new medical infrastructure, the procurement and recovery of some non epidemic related products, and the rapid development of emerging businesses such as AED and minimally invasive surgery, the life information and support business continued to grow well in 2021. (2) The in vitro diagnosis business realized an operating revenue of 8.449 billion yuan, a year-on-year increase of 27.12%. In 2021, due to the continuous recovery of routine diagnosis and treatment, physical examination and surgery worldwide, the consumption of conventional reagents has recovered significantly. At the same time, thanks to the rapid increase of bc-7500crp, a popular new product integrating high-end fluorescent five classification, automatic peripheral blood injection and high-speed CRP joint inspection, the in vitro diagnosis business has grown rapidly. (3) The medical imaging business realized an operating revenue of 5.426 billion yuan, a year-on-year increase of 29.29%. With the gradual recovery of routine diagnosis and treatment and physical examination around the world, ultrasound procurement activities will return to normal, driving the medical imaging business to achieve high restorative growth in 2021.
In the first quarter of 2022, the company’s performance met expectations. In the first quarter of 2021, despite repeated outbreaks in some parts of China, the overall situation remained stable, the routine diagnosis and treatment activities of the hospital and various businesses of the company resumed normalization, the breakthrough of in vitro diagnosis and medical imaging in China’s high-end market continued to accelerate, the construction of China’s new medical infrastructure continued to increase, and the company’s business in China maintained good growth. In the overseas market, the company’s conventional businesses have achieved significant recovery, and the North American market has achieved rapid growth thanks to the major breakthrough of high-end medical consortium customers. In terms of profit, in Q1 2022, the company realized a net profit attributable to the parent company of RMB 2.105 billion, a year-on-year increase of 22.74%; The profit growth rate is higher than that of revenue, which is mainly due to the continuous and stable growth of the company’s operating revenue, the continuous embodiment of the scale effect and the optimization of the net interest rate.
Mindray’s core advantages are becoming more and more obvious. (1) Strong R & D and innovation ability: in 2021, the company maintained a high R & D investment, with an annual R & D investment of 2.726 billion yuan, a year-on-year increase of 30.08%. The products were continuously enriched and continued technical iteration, especially in high-end products. (2) Advanced quality management and intelligent manufacturing system: in 2021, the company’s quality system successfully passed various audits for 56 times. At present, the products have successfully entered the markets of Europe, America and other developed countries. In addition, the company has a manufacturing base with a total area of more than 300000 square meters, which meets the production demand of global sales, and introduces the medical product innovation (MPI) process. (3) Marketing system with global in-depth coverage and professional services: as of December 31, 2021, the company has 3540 marketing personnel and has branches in more than 30 provinces, cities and autonomous regions in China; It has subsidiaries in more than 30 countries abroad, and its products are exported to more than 190 countries and regions. (4) A comprehensive, full-time and whole process after-sales service system, customer-oriented, and constantly launch excellent products to the market. (5) Stable and professional management team: the company has a stable core management team with an average age of less than 50 years. Many of them have worked in multiple positions in Meirui for more than 10 years, accumulated rich experience in R & D, marketing, production, management, M & A and other related experience in the medical device industry, and have strong international operation ability.
Investment suggestion: the company is the leader of medical devices in China, with both innovation and brand strength. Its products are diversified and its growth can be expected in the future. We expect the company’s earnings per share in 2022 / 2023 to be 8.25 yuan / 10.02 yuan respectively, and the current share price corresponding to PE is 40 times / 33 times respectively, maintaining the “recommended” rating of the company.
Risk warning: risk of industrial policy change; New Coronavirus pneumonia affects risk. Exchange rate fluctuation risk; Operation and management risks; Product R & D risk, etc.
