\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 60 Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022, and the performance basically met the market expectations. In 2021, the company achieved a revenue of 25.27 billion yuan, a year-on-year increase of 20.2%; The net profit attributable to the parent company was 8 billion yuan, a year-on-year increase of 20.2%, and the net profit not attributable to the parent company was 7.85 billion yuan, a year-on-year increase of 20.0%. In the first quarter of 2022, the company achieved a revenue of 6.94 billion yuan, a year-on-year increase of 20.1%; The net profit attributable to the parent company was 2.11 billion yuan, a year-on-year increase of 22.7%, and the net profit not attributable to the parent company was 2.07 billion yuan, a year-on-year increase of 22.2%.
Comments:
The company is a leader in the medical device industry, and its performance is still stable in the post epidemic period: in 2021, the company achieved an increase of more than 20% in operating revenue and net profit attributable to the parent company. The company’s product penetration and market share further improved. The blood cell business became the first in China for the first time, and the ultrasound business surpassed the imported brand and became the second in China for the first time. By production line, thanks to the resumption of diagnosis and treatment activities in hospitals outside China under the normalized epidemic prevention and control, the procurement demand for conventional diagnosis such as ultrasound, blood cell, biochemistry and luminescence continued to recover, driving the business revenue in the two major fields of medical imaging and in vitro diagnosis to achieve a high growth of 29.3% and 27.1%; Thanks to the gradual development of China’s new medical infrastructure, the income of life information and support business has achieved a steady growth of 11.5%.
High investment in R & D and production continued, and the layout of high-end products achieved results: the company invested 2.726 billion yuan in R & D in 2021, with a year-on-year increase of 30.1%, and the product echelon was constantly enriched. By the end of 2021, the company had applied for 5308 invention patents and authorized 1618 invention patents. In the field of in vitro diagnosis, full-automatic analyzers such as bs-2800m and cl-8000i were introduced; In the field of medical imaging, the company launched “Kunlun R7”, “Nuwa R7” and other application solutions; In the field of life information and support, launch hypixel R1 camera system, ventilator, anesthesia machine and other products; In the field of smart medicine, the “SanRui” ecosystem with “ruizhilian”, “ruiyingyun + +” and “meiruizhijian” as the core better supports the construction of smart hospital, and the pace of admission is accelerated. The company’s innovative R & D capability is outstanding, and the products of each production line are upgraded iteratively, which lays a technical advantage for the company to explore the high-end market.
The Chinese market grasps the opportunities of new infrastructure construction and seeks breakthroughs through the in-depth integration of overseas markets: with the promotion of new medical infrastructure construction, the company will usher in important opportunities for development in the expansion wave of large hospitals with its industry position accumulated for many years. At the same time, through the in-depth integration of marketing systems outside China, the company continued to go deep into the localization construction of overseas markets, breaking through more than 700 new high-end customers in Europe and emerging market countries. Recently, the North American market has made a major breakthrough due to high-end medical consortium customers, and the overseas market has been further consolidated. In the past 21 years, the company’s overseas routine business grew rapidly, and the revenue growth rate exceeded 35% after excluding anti epidemic related products.
Profit forecast, valuation and rating: the company is the comprehensive leader of medical devices in China. With the further control of the epidemic, the recovery of routine diagnosis and treatment and the promotion of new infrastructure, the performance will also maintain steady growth. However, due to the uncertainty brought by the international situation to the company’s overseas performance, we slightly reduced the company’s net profit attributable to the parent company from 22 to 23 years to 9.71 billion yuan (the original forecast was 10.2/12.2 billion yuan, down 5% / 4% respectively). At the same time, we introduced the forecast value of 24-year net profit attributable to the parent company to 14.1 billion yuan, an increase of 20.82% / 20.81% / 20.70% respectively year-on-year. The current price corresponds to 41 / 34 / 28 times of PE from 22 to 24 years, maintaining the “buy” rating.
Risk warning: product development and approval are less than expected, and market competition intensifies.
