\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 32 Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) )
Event: on the evening of April 21, 2022, the company released its annual report for 2021: the company achieved an annual operating revenue of 2.545 billion yuan, a year-on-year increase of 15.97% (a year-on-year increase of 32.22% after deducting covid-19 luminous reagent business revenue); The net profit attributable to the parent company was 974 million yuan, a year-on-year increase of 3.68%; Deduct non net profit of RMB 883 million, with a year-on-year increase of 3.06%. The net cash flow from operating activities was 773 million yuan, a year-on-year decrease of 20.83%; The basic earnings per share is 1.2420 yuan, and a cash dividend of 6.00 yuan (including tax) is proposed to be distributed to all shareholders for every 10 shares.
Among them, the operating revenue in the fourth quarter of 2021 was 652 million yuan, a year-on-year increase of 4.31%; The net profit attributable to the parent company was 308 million yuan, a year-on-year increase of 27.91%; Deduct non net profit of RMB 282 million, with a year-on-year increase of 31.39%.
On the same day, the company released the report for the first quarter of 2022. In the first quarter, the company achieved an operating revenue of 743 million yuan, a year-on-year increase of 39.53%; The net profit attributable to the parent company was 308 million yuan, a year-on-year increase of 83.46% (excluding equity incentives and exchange gains and losses, a year-on-year increase of 43%); Deduct 286 million yuan of non net profit, an increase of 98.17% year-on-year. The net cash flow from operating activities was 181 million yuan, a year-on-year increase of 52.03%.
China continues to promote the accelerated import substitution of mainframes, and the performance of overseas key countries is large
After 11 years of market cultivation, by 2021, the company has sold / installed more than 20600 full-automatic chemiluminescence immunoanalyzers worldwide, and 162 chemiluminescence immunodiagnostic reagent projects for global sales. Among them, the accumulated sales / installed capacity of maglumix8 outside China reached 1086, and the accumulated sales / installed capacity of maglumix3 introduced to the market in March 2021 reached 763. In the first quarter of 2022, the company completed the sales / installation of 1648 automatic chemiluminescence instruments, of which 148 were sold / installed by maglumix8.
(1) Chinese market: in 2021, the operating revenue was 1.779 billion yuan, with a year-on-year increase of 29.66%; The gross profit margin decreased by 2.83pct to 74.89% year-on-year. In 2021, 1673 fully automatic chemiluminescence instruments were installed in the Chinese market, of which 601 were installed in maglumix8, with a year-on-year increase of 47.67%, and mainframe accounted for 51%; In 2021, China’s reagent sales amounted to 1.433 billion yuan, a year-on-year increase of 26.36%, and the reagent consumption of single machine increased significantly.
By 2021, the company has provided services to more than 7700 medical terminals in China, including 1209 tertiary hospital customers, and the coverage rate of China’s top three hospitals has reached 52.41%. China has accumulated more than 9800 chemiluminescence immunoassay instruments. As of the first quarter of 2022, the number of end customers of the company’s products and services in the Chinese market has exceeded 7900, including 855 customers of class III hospitals, and the coverage rate of class III hospitals of the company’s products has increased to 54.11%.
(2) overseas markets: in 2021, the operating revenue reached 766 million yuan, a year-on-year decrease of 6.87% (excluding the impact of covid-19 business, a year-on-year increase of 39%); The gross profit margin decreased by 13.82pct to 63.48% year-on-year. The covid-19 epidemic prevention policies of many overseas countries were adjusted. The revenue of covid-19 luminous detection reagent of the company decreased significantly, and the revenue of covid-19 luminous reagent decreased from 320 million to 66 million yuan; After deducting the influence of covid-19 luminous reagent sales, the overseas reagent revenue was 402 million yuan, with a year-on-year increase of 60.05%, showing a good growth trend. In 2021, the brand influence of the company in many overseas countries was significantly improved. A total of 2884 automatic chemiluminescence instruments were sold throughout the year, with a year-on-year increase of 54.39%, which laid a solid foundation for the continuous growth of subsequent overseas business.
By 2021, the company has provided services to medical terminals in 147 countries and regions, and has sold more than 10800 chemiluminescence immunoassay instruments in total. There are 25 countries with more than 100 installed capacity, and India has become the first overseas country with an income of more than 100 million yuan.
The management expense ratio gradually returned to normal, and the net interest rate of 22q1 increased by 9.94pc
According to the analysis of profitability, in 2021, the company’s comprehensive gross profit margin decreased by 6.03pct to 71.15% year-on-year, mainly due to the company’s overall reduction in the sales price of instruments, and the gross profit margin of instrument products decreased by 14.90pct to 17.17% year-on-year; However, the gross profit margin of reagent products remained stable, with a year-on-year decrease of 0.83pct to 89.67%. The sales expense ratio increased by 1.00pct to 14.53% year-on-year; The rate of administrative expenses decreased by 2.83pct to 6.57% year on year; The R & D expense ratio increased by 1.59pct to 8.45% year-on-year, mainly due to the strengthening of R & D team construction during the reporting period, the increase of R & D personnel, the increase of salary and the increase of various investment in R & D; The financial expense ratio decreased by 0.05pct to 1.14% year-on-year. Under the comprehensive influence, the overall net profit margin of the company decreased by 4.53pct to 38.25% year-on-year.
In the first quarter of 2022, the company’s comprehensive gross profit margin, sales expense rate, management expense rate, R & D expense rate, financial expense rate and overall net profit rate were 72.11%, 13.46%, 4.39%, 7.88%, 0.64% and 41.53% respectively, with changes of + 1.12pct, -1.23pct, -12.03pct, + 0.31pct, + 1.01pct and + 9.94pct respectively. Among them, the increase of comprehensive gross profit margin is mainly due to the adjustment of the company’s instrument sales policy, and the decrease of management fee rate is mainly due to the gradual reduction of the impact of share based payment fees of restricted stock incentive plan in 2020.
Profit forecast and investment rating: we expect the operating revenue from 2022 to 2024 to be RMB 3.314 billion / 4.210 billion / 5.285 billion respectively, with a year-on-year growth rate of 30% / 27% / 26% respectively; The net profit attributable to the parent company was 1.339 billion yuan / 1.740 billion yuan / 2.186 billion yuan, an increase of 37% / 30% / 26% respectively; EPS is 1.70/2.21/2.78 respectively, corresponding to 20 times PE in 2022 according to the closing price on April 21, 2022. Maintain the “buy” rating.
Risk warning: fierce competition intensifies risk, price cut exceeds expected risk, R & D progress is less than expected risk, overseas market volatility risk, New Coronavirus pneumonia epidemic continues to affect the risk.
