\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 60 Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) )
Event:
The company released its annual report for 2021. The annual revenue was 25.270 billion (YoY + 20.18%, the same below), the net profit attributable to the parent was 8.002 billion (+ 20.19%), and the net profit deducted from non attributable to the parent was 7.85 billion (+ 20.04%), and the performance was in line with expectations. In 2022, Q1 achieved an operating revenue of 6.943 billion (+ 20.10%), a net profit attributable to the parent company of 2.105 billion (+ 22.74%), and a non net profit of 2.072 billion (+ 22.20%), maintaining a steady growth. The company plans to pay 35 yuan for every 10 shares.
Comments:
The three major production lines grew steadily, and the high-end system increased rapidly
The company’s three business lines of life information and support, in vitro diagnosis and medical imaging achieved operating revenue of 11.153 (+ 11.47%), 84.49 (+ 27.12%) and 5.426 (+ 29.29%) billion yuan respectively, of which diagnosis and imaging maintained rapid growth, and the growth of monitoring line was slightly dragged down by the high base of overseas in the same period last year. After the outbreak, the life information and support business benefited from the development of China’s new medical infrastructure and is expected to grow faster.
The rapid growth of in vitro diagnosis and medical imaging is mainly due to the recovery of routine diagnosis and treatment and physical examination all over the world, and the gradual recovery of routine business promotion; Bc-7500crp, bs-2800m, women’s and children’s application solution “Nuwa R7” and other high-end systems have increased rapidly, driving the growth of corresponding sectors.
Marketing integration has gradually achieved results, with high R & D investment to consolidate the product matrix
During the 21 years, the company’s expense rate was 29.85% (- 0.19%), of which the sales expense rate was 15.83% (- 1.35%), and Q1 in 22 years was further reduced to 15.45%. The marketing was deeply integrated and gradually effective; The R & D expense rate is 9.99% (+ 1.1%), and the Q1 of 22 years is 10.14%. Under the high base of 2020, the R & D expense still has further growth, which provides strong support for the continuous iteration of the product matrix.
Maintain “buy” rating
Benefiting from China’s new medical infrastructure, the company, as the leader of China’s medical devices, is expected to obtain excess orders. We predict that the company’s revenue in 22-24 years will be 320.19/404.79/50.914 billion respectively, the net profit will be 10.09/125.83/15.756 billion respectively, the three-year CAGR will be 25.47%, and the EPS will be 8.26/10.38/13.00 yuan respectively. Corresponding to the closing price on April 19, PE will be 40 / 32 / 25 times respectively, and the target price will be 450.0 yuan, maintaining the “buy” rating.
Risk tips
The expansion of grass-roots units did not meet expectations, the impact of China’s regional centralized mining, covid-19 epidemic fluctuation, the impact of exchange rate, the growth did not meet expectations, and the market performance of new products was lower than expected
