\u3000\u3 Shengda Resources Co.Ltd(000603) 987 Shanghai Kindly Enterprises Development Group Co.Ltd(603987) )
Event: in 2021, the company achieved an operating revenue of 3.1 billion yuan, a year-on-year increase of 17.07%; The net profit attributable to the parent company was 290 million yuan, a year-on-year increase of 43.71%; The net profit attributable to the parent company after non deduction was 260 million yuan, a year-on-year increase of 39.23%.
The company's main business grew rapidly and its performance at home and abroad increased simultaneously: in 2021, benefiting from the release of the company's early production capacity, the bid winning of centralized procurement, the rapid growth of the market demand for vaccine injection and the repeated demand expansion driven by the epidemic at home and abroad, the company's main business achieved rapid growth. Among the products with a revenue of more than 400 million yuan, the company realized an operating revenue of 560 million yuan for finished needles, syringes and interventions respectively RMB 820 million and RMB 460 million, with a year-on-year increase of 28.35%, 49.93% and 51.40% respectively. In addition, the quality of the company's products has been recognized by world-famous medical device companies, and has formed a long-term and stable project development and supply and marketing cooperation relationship with them. The orders of the company's products in the international market have increased rapidly. In terms of regions, the company achieved a revenue of 2.05 billion yuan in the Chinese market, a year-on-year increase of 13.39%; The international market realized a revenue of 1.04 billion yuan, a year-on-year increase of 37.59%.
Winning the bid for centralized purchase in many places and accelerating the penetration into the blank Market: in 2021, China continued to promote the centralized purchase of medical devices. The company's indwelling needle and functional infusion set were included in the catalogue of centralized purchase of medical consumables and won the bid in centralized purchase in Hebei, Shandong and other places, which not only accelerated the penetration of the company's products in the blank market, expanded the local market share of the company's products, but also promoted the entry of other products of the company into the local market to a certain extent. Moreover, in the context of the gradual improvement of diabetes awareness in China, the penetration rate of insulin needle is expected to increase rapidly. The insulin needle is constantly optimized and optimized. The new generation of safe insulin needles will have a high performance price ratio, which is expected to achieve domestic substitution and accelerate the market share.
R & D has been further increased, driving the company's new products to the market: in 2021, the company's R & D expenses were 170 million yuan, a year-on-year increase of 33.15%; The R & D expense rate was 5.34%, an increase of 0.64pp compared with 2020. Through continuous R & D investment, the company's products have been continuously upgraded, new products developed have been listed one after another, disposable beauty bags have been registered in China and launched on the market; 510k registration and submission of disposable safety injection needles, disposable safety syringes and other products; In 2021, the company completed the first registration of 14 products and continued registration of 26 products. In the future, the continuous listing of medical and beauty devices, safety injection and intervention products will further broaden the company's product line and increase profits for the company.
Profit forecast and investment rating: we maintain the forecast of net profit attributable to parent company in 2022 / 2023 to be 396 / 513 million yuan, and the forecast of net profit attributable to parent company in 2024 to be 649 million yuan. The current market value corresponding to PE is 19 / 14 / 11 times respectively, maintaining the "buy" rating.
Risk tip: the promotion of new products is not as expected; Exchange losses; The implementation of centralized purchase policy exceeded expectations.
