\u3000\u3 Guocheng Mining Co.Ltd(000688) 198 Beijing Balance Medical Technology Co.Ltd(688198) )
The annual net profit of the parent company is RMB 20.24 million (+ 5.174 million) and the annual net profit of the parent company is RMB 0.34 million (- 5.52 million) after the issuance of the annual report. 2) The company released the first quarterly report of 2022. In 2022q1, the revenue was 66 million yuan (+ 26.3%), the net profit attributable to the parent was 13.61 million yuan (+ 53.5%), the net profit not attributable to the parent was 10.9 million yuan (+ 48.2%), and the net operating cash flow was 23.09 million yuan (+ 73.2%).
Share based payment expenses affect the apparent performance, and the endogenous profitability maintains a high level. In 2020, the share based payment expense was recognized as 64.45 million yuan. Excluding this effect, the endogenous net profit attributable to the parent company was 117 million yuan (+ 33.6%). 2022q1 confirmed that the share based payment expense was 16.98 million yuan. Excluding this impact, the net profit attributable to the parent company in the first quarter was 28.66 million yuan (+ 16.8%). In terms of profitability, the gross profit margin of 22q1 is 88.7%, which is basically stable. If the factor of share based payment is excluded, the endogenous parent net profit margin is 43.4%, maintaining a high level.
Artificial heart valves are the engine of growth. By business, in 2021, the revenue of heart valve replacement and repair business was 94.57 million yuan (+ 77.9%), and the gross profit margin was 95.7% (+ 0.3pp), of which the core product artificial biological heart valve bovine pericardial valve achieved a revenue of 65.08 million yuan (+ 97.1%), and the sales volume was 5105, which doubled compared with 2020. The revenue of bovine pericardial valve of 2022q1 company increased by 44.9% year-on-year, and continued to be the growth engine. In 2021, the business income of congenital heart disease intervention was 86.07 million yuan (+ 38.3%), and the gross profit margin was 81.5% (- 2.1pp); The business income of surgical soft tissue repair and treatment is 71.16 million yuan (+ 7%), and the gross profit margin is 86.6% (- 2.1pp).
Continue to increase R & D and orderly promote products under research. In 2021, the R & D investment of the company was 58.9 million yuan (+ 104.7%), accounting for 23.4% of the revenue. In 2022q1, the R & D investment increased by 43.3% year-on-year, continuing to be faster than the revenue growth. All products under research of the company are promoted in an orderly manner, including Renato in the interventional valve ® All patients were enrolled on March 29, 2022, and tavrrenatus was expanded ® All patients were enrolled on April 20, 2022. The clinical trial of ophthalmic biological patch was officially carried out in May 2020, and all patients were enrolled on April 7, 2022. The company’s vascular biological patch has completed the enrollment of patients. At present, the conclusion has been completed and the registration application is being prepared. The outflow tract single valve patch was approved and registered by the State Food and Drug Administration on March 31, 2021. It is the first approved exclusive product in the world and has been sold on the market at present. In addition, the company has many products in the clinical or design stage, and the huge pipeline under research is orderly promoted to support the long-term development of the company.
Profit forecast and rating: considering the impact of equity incentive expenses, it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 85 million, RMB 146 million and RMB 194 million, corresponding to EPS of RMB 0.88, RMB 1.52 and RMB 2.01. As an innovation leader based on animal derived implant intervention materials, it has great potential in the future and maintains the “buy” rating.
Risk tips: risk of R & D failure, sales falling short of expectations, repeated epidemic and intensified competition.
