\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 60 Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) )
Event: the company released the 2021 annual report and the first quarterly report of 2022.
In 2021, the annual revenue was 25.27 billion yuan, a year-on-year increase of + 20.18%, and the net profit attributable to the parent company was 8.002 billion yuan, a year-on-year increase of + 20.19%. The net profit attributable to the parent company after deducting non-profit was 7.85 billion yuan, a year-on-year increase of + 20.04%. In the fourth quarter of 2021, the revenue was 5.878 billion yuan, a year-on-year increase of + 18.46%, and the net profit attributable to the parent company was 1.339 billion yuan, a year-on-year increase of + 3.41%. The net profit attributable to the parent company after deduction was 1.306 billion yuan, a year-on-year increase of + 2.46%.
In the first quarter of 2022, the revenue was 6.943 billion yuan, a year-on-year increase of + 20.1%, and the net profit attributable to the parent company was 2.105 billion yuan, a year-on-year increase of + 22.74%. The net profit attributable to the parent company after deducting non profits was 2.072 billion yuan, a year-on-year increase of + 22.2%.
Comments:
In 2021, the company’s annual performance maintained rapid growth, and its business benefited from the recovery of conventional demand and new medical infrastructure. In 2021, the company achieved an annual revenue of 25.27 billion yuan, a year-on-year increase of 20.18%. Benefiting from the recovery of conventional procurement and the development of new medical infrastructure, the company achieved a rapid growth of 37.3% in the Chinese market in 2021. With the accelerated recovery of conventional ultrasound procurement and reagent consumption, the company’s medical imaging and in vitro diagnosis production lines have achieved rapid growth of 29.3% and 27.1% respectively; Benefiting from the development of China’s new medical infrastructure, the company’s life information and support production line still achieved a good growth of 11.5% under the high base in 2020, with a compound growth rate of more than 30% in two years. The net profit attributable to the parent company was 8.002 billion yuan. As the profit margin and expense rate remained stable, the growth rate was basically consistent with the growth rate of revenue, with a year-on-year increase of 20.19%.
In the first quarter of 2022, the performance maintained a rapid growth trend. In the first quarter of 2022, the revenue was 6.943 billion yuan, a year-on-year increase of 20.1%. The continuous breakthrough in China’s high-end market and the investment in new medical infrastructure made the company’s Chinese revenue grow rapidly in the first quarter; The overseas conventional business has fully recovered, and the North American market has achieved rapid growth due to the major breakthrough of high-end medical consortium customers. The continuous recovery of conventional procurement, the outstanding performance of high-end R-Series ultrasound and the accelerated breakthrough of IVD business in tertiary hospitals helped the production line of medical imaging and in vitro diagnosis achieve rapid growth in the first quarter. In terms of profit, the net profit attributable to the parent company after deduction was RMB 2.072 billion, with a year-on-year increase of 22.2%. If considering the impact of lower tax rate in the first quarter of 2021 and the impact of equity incentive accrual in the first quarter of 2022, the profit growth rate of the company in the first quarter was actually higher.
New products continued to be launched in the first quarter, and the company’s future growth can be expected. The company launched a series of products and solutions with significant clinical value in the first quarter of 2022. In the field of in vitro diagnosis, a five classification and ESR integrated blood cell analyzer was launched, a new generation of medium speed biochemical analyzer integrating routine biochemistry, ISE and total glycemia functions was launched, and the concentrated diluent solution for blood cells was launched for the first time. In the field of medical imaging, it has launched new equipment such as ultra-high-end flat-panel color ultrasound (International), medium and high-end color ultrasound solutions for basic medical treatment (International), professional ophthalmic color ultrasound (China), noninvasive quantitative liver ultrasound (China, International), etc. In the field of life information and support, it has launched new products such as adult noninvasive ventilator (CE), Hansen and suit puncture (China). With the continuous innovation of the company’s product line, the company’s performance can achieve sustained growth.
Profit forecast and investment rating: we predict that the company’s operating revenue from 2022 to 2024 will be 30.4/366/44 billion yuan respectively, with a growth rate of 20.3% / 20.4% / 20.2%, and the net profit attributable to the parent company will be 9.6/115/13.9 billion yuan respectively, with a growth rate of 20.1% / 20.2% / 20.3%, and the corresponding PE will be 41 / 34 / 29x respectively.
Risk factors: China’s repeated epidemic, the policy of centralized purchase of medical devices and consumables exceeding expectations, and the risk of trade friction.
