Aohua endoscope (688212)
Key investment points
Event: in 2021, the company achieved a revenue of 347 million yuan, a year-on-year increase of 31.8%, and the net profit attributable to the parent company was 57 million yuan, a year-on-year increase of 208.16%; In 2022q1, the revenue was 82 million yuan, a year-on-year increase of 13.77%, and the net profit attributable to the parent company was 3.407 million yuan, a year-on-year decrease of 63.8%.
Affected by the epidemic situation in China, the company’s main business income will gradually recover by more than 30% in 2021, which is also in line with the expected growth of routine medical examination in 2021. By product, in 2021, the company’s revenue from endoscope equipment was 304 million (+ 31.59%), diagnosis and treatment consumables was 40 million (+ 31.51%), and endoscope maintenance service revenue was 3.3428 million yuan (+ 75.84%); In terms of sub regions, China’s business grew rapidly in 2021, with a revenue of 250 million (+ 50.23%), mainly due to the company’s continuous layout of Chinese marketing, increasing clinical promotion, improving channel construction and expanding service system. Overseas affected by the epidemic, the performance was average (+ 0.49%); In the first quarter of 2022, the epidemic had a certain impact on the company’s production and logistics. However, considering the strong market demand and the greater impact on foreign-funded enterprises, it is expected that the company’s performance will rebound rapidly after the recovery of the epidemic. The previously released equity incentive target (Class A) will maintain a revenue growth rate of 27% / 50% / 50% in the next three years, and the high growth target of 23-24 years also fully demonstrates the company’s development confidence.
The market recognition of aq200 continues to improve, laying the foundation for the volume of follow-up new products: aq-200 is innovatively equipped with laser transmission technology and wireless power supply technology, which realizes the electrical isolation between equipment and significantly improves the safety and convenience of operation. Compared with mainstream products in the market, aq200 has differentiated competitive advantages, significant cost-effective advantages, continuous improvement of clinical recognition, and the penetration rate of aq-200 rises rapidly after its listing, Lay a solid reputation and market foundation for the subsequent listing and sales of new high-end products of the company. Meanwhile, the high-end aq-200 drives the price of endoscopic equipment to rise further. In 2021, the growth rate of the company’s endoscopic equipment revenue (+ 31.59%) exceeded that of the sales of mainframe (+ 27.2%) and lens (+ 20.8%). The next generation aq-300 is expected to be launched in 23 years as the main product in the high-end market, helping the company quickly seize the market share of tertiary hospitals and accelerate the expansion of tertiary hospitals.
Continue to increase R & D investment and enrich subsequent product lines: the company’s product lines under research include aq-200 upgraded products, 4K ultra-high definition endoscopes, 3D soft endoscopes, endoscopes Siasun Robot&Automation Co.Ltd(300024) etc. in 2021, the company invested 49 million yuan (+ 25.79%), accounting for 14.22% of revenue, and 14 million yuan (+ 36.75%) in 2022q1 R & D. It is expected to further increase investment in 2022 to accelerate the company’s layout in the field of endoscopy.
Profit forecast and investment suggestions: it is estimated that the operating revenue from 2022 to 2024 will be 451 / 686 / 1.03 billion, with a year-on-year growth rate of 30% / 52% / 50.2%; The net profit attributable to the parent company was 58 / 101 / 161 million respectively, with a year-on-year growth rate of 2.4% / 73.6% / 58.5%. Maintain the “buy” rating.
Risk warning: the R & D Progress of new products is less than expected; Intensified market competition; Channel development is less than expected; Repeated outbreaks have led to a less than expected recovery in hospital sales.
