\u3000\u3 Shengda Resources Co.Ltd(000603) 987 Shanghai Kindly Enterprises Development Group Co.Ltd(603987) )
Main points:
Event:
On April 20, 2022, the company disclosed the annual report of 2021. In 2021, the company achieved an operating revenue of 3.097 billion yuan, a year-on-year increase of 17.07%, a net profit attributable to shareholders of listed companies of 291 million yuan, a year-on-year increase of 43.71%, and a net profit attributable to shareholders of listed companies deducting non recurring profits and losses of 257 million yuan, a year-on-year increase of 39.23%. The basic earnings per share is 0.66 yuan / share.
Event comments
The high growth rate of overseas market (+ 24.91%) improved the overall performance of the company
According to the sales regions, the company realized an income of about 1.042 billion yuan in the overseas market in 2021, with a year-on-year increase of about 24.91%, and an income of about 2.045 billion yuan in the Chinese market, with a year-on-year increase of about 13.39%.
On the one hand, the company has strengthened product project cooperation with well-known foreign enterprises, accelerated the R & D and upgrading of product pipelines, and promoted the optimization of new product structure in foreign markets, such as the 510k registration submission of disposable safety injection needles, disposable safety syringes and other products. On the other hand, the transformation of the company’s business model in the international market has promoted the continuous growth of business orders, In 2021, the gross profit margin of the company’s overseas market reached 37.59% and continued to rise.
Benefiting from the demand for vaccine injection, syringe products increased significantly (49.93%)
In terms of products, the company’s syringe products achieved 818 million yuan in 2021, with a year-on-year increase of 49.93%, accounting for about 26.43% of the company’s total revenue. The significant increase is mainly due to the continuous impact of the epidemic and the rapid growth of vaccine injection market demand. The sales volume of the company’s syringe products increased by about 70% compared with the same period last year. In addition, the revenue of the company’s intervention products was about 455 million yuan, with a year-on-year increase of about 51.40%, which also contributed to the growth of the company’s revenue.
Adhere to the diversified layout strategy and strengthen the expansion of medical beauty, active devices and other categories
In the future, the company will further promote the investment and construction of diversified medical industries, lay out and develop the medical beauty industry, active equipment + passive consumables industry and specimen collection industry through industrial extension investment, strengthen the development of industrial investment, adjust and optimize the company’s industrial structure based on its main business, and improve the company’s ability to resist market and policy risks.
In the future, the company will consolidate the industrial development in the field of medical puncture basic consumables, medical infusion equipment Basic consumables and special medical devices, further strengthen the operation and construction of diversified medical industries, strengthen the management and control of investment returns and investment and operation objectives of investment enterprises involved in the device industry, give full play to the role of capital platform of listed companies, and build the basic sector of stable industrial structure and economic structure of the company, Achieve the annual compound growth target and market value management target, and improve the comprehensive competitiveness of the company.
Investment advice
We expect that the company’s revenue from 2022 to 2024 is expected to reach 3.790 billion yuan, 4.509 billion yuan and 5.371 billion yuan respectively, with a year-on-year increase of about 22.4%, 19.0% and 19.1% respectively. Considering that the proportion of the company’s high gross margin products is gradually increasing, and the overall gross profit margin and net profit margin of the company will also increase year by year, we expect the company’s net profit attributable to the parent company from 2022 to 2024 to reach 388 million yuan, 484 million yuan and 600 million yuan respectively, The year-on-year growth was about 33.1%, 24.9% and 24.0% respectively. The EPS from 2022 to 2024 are 0.83 yuan, 1.04 yuan and 1.29 yuan respectively, and the corresponding PE valuations are 20x, 16x and 13X respectively. In view of the continuous upgrading of the company’s products, the smooth expansion of overseas markets, the basic market in China is stable, and the “buy” rating is maintained.
Risk tips
Industry policy risk;
Product R & D risk;
Risk of rising prices of bulk raw materials.
