\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 60 Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) )
Event: Recently, the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved an operating revenue of 25.270 billion yuan, a year-on-year increase of 20.18%; The net profit attributable to the parent company was 8.002 billion yuan, a year-on-year increase of 20.19%; Deduct non net profit of RMB 7.85 billion, with a year-on-year increase of 20.04%. In Q1 2022, the company achieved an operating revenue of 6.943 billion yuan, a year-on-year increase of 21.10%; The net profit attributable to the parent company was 2.105 billion yuan, a year-on-year increase of 22.84%; Deduct non net profit of RMB 2.072 billion, with a year-on-year increase of 22.20%.
Routine business recovered, and in vitro diagnosis and medical imaging business grew rapidly. Due to the continuous recovery of routine diagnosis and treatment, physical examination and surgery worldwide, the routine diagnosis and treatment activities such as outpatient and emergency treatment, physical examination and surgery in Chinese hospitals gradually returned to normal. In 2021, the company’s in vitro diagnosis business revenue was 8.449 billion yuan, a year-on-year increase of 27.12%; The revenue of medical imaging business was 5.426 billion yuan, a year-on-year increase of 29.29%. With the continuous technological accumulation and product innovation of the company’s product line, the company further expands its competitive advantage in the Chinese market, accelerates the improvement of localization rate, and strengthens the development of international market. The in vitro diagnosis business and medical imaging business are expected to develop continuously and rapidly.
The new global medical infrastructure continued to advance, and the domestic and foreign markets expanded rapidly. China: since 2020, the Chinese market has entered a new medical infrastructure stage of increasing the construction of ICU Wards, infectious disease hospitals, fever clinics and shelter hospitals. With the implementation of the “14th five year plan”, the policies for the rapid development of various medical institutions continue to be issued, and the construction momentum of hospitals across the country is rapid, driving the rapid development of the medical device industry. As a leader of domestic devices, the company will give priority to benefit. According to the company’s calculation, from the perspective of the company’s accessible market, by the end of 2021, the market space of China’s new medical infrastructure has reached 20 billion yuan; The market space brought by the “thousand county project” is expected to reach 10 billion yuan. Overseas: the covid-19 epidemic has posed great challenges to the medical and health systems of various countries. Some European countries have begun to plan measures to make up for medical shortcomings. The medical shortcomings exposed by the epidemic in developing countries are more serious, and countries have gradually increased medical investment. The epidemic has caused downward pressure on the global economy, especially in emerging markets with greater growth potential. The advantages of high cost performance of the company’s products are further highlighted. In the future, emerging markets are expected to take over China and become a new long-term growth driver of the company.
The internationalization and high-end continued to make breakthroughs, and the market position was further improved. In 2021, the company broke through more than 700 new high-end customers (including high-end laboratories) in North America, Europe and emerging markets. At the same time, it also achieved a horizontal product breakthrough of more than 700 high-end customers, continuing the trend of overseas high-end breakthrough. At the same time, the company continues to ensure high R & D investment. In 2021, the R & D investment was 2.726 billion yuan, with a year-on-year increase of 30.08%. The products are constantly enriched and the technology iteration is continued, especially in high-end products. The launch of heavy high-end products will become a solid foundation for the company to continue its rapid growth and continue to bring new growth points to the company.
Profit forecast and Valuation: we estimate that the company’s revenue from 2022 to 2024 will be 30.47 billion yuan, 36.77 billion yuan and 44.26 billion yuan respectively, with a year-on-year increase of 20.6%, 20.7% and 20.4%; The net profit attributable to the parent company was 9.70 billion yuan, 11.74 billion yuan and 14.22 billion yuan respectively, with a year-on-year increase of 21.2%, 21.0% and 21.1%. On April 20, the closing price (299.70 yuan / share) corresponding to PE was 38, 31 and 26 times respectively, maintaining the “buy” rating.
Risk warning: covid-19 epidemic affects routine diagnosis and treatment; Product development is not as expected; Overseas business expansion is less than expected; Policy risk of centralized purchase of medical devices.
