\u3000\u3 China Vanke Co.Ltd(000002) 223 Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) )
Key investment points
Event: in 2021, the company realized an operating revenue of 6.894 billion, a year-on-year increase of 2.51%, a net profit attributable to the parent company of 1.482 billion, a year-on-year decrease of 15.73%, a deduction of non net profit of 1.319 billion, a year-on-year decrease of 18.9%, and an operating cash flow of 1.201 billion, a year-on-year decrease of 57.57%.
After the epidemic, the company performed steadily, with a significant compound growth rate compared with that in 2019: the demand for epidemic related products increased sharply in 2020, and the company's ventilator, electronic thermometer and sensing control products increased significantly. After the epidemic stabilized in 2021, the company's epidemic products fell sharply, and the oxygen generator made a certain positive contribution to the revenue, but had little impact on the company's overall revenue of 6.9 billion, Relying on the rapid growth of conventional products, the company still achieved a slight increase in overall revenue and a certain decline in net profit. After the epidemic, the overall performance of the company was relatively stable. Taking 2019 as the base, the compound annual growth rate of income from 2019 to 2021 is 22%, and the compound growth rate of net profit attributable to parent is 40%, which is significantly higher than that before the epidemic. It is expected that with the continuous enrichment of the company's products and the continuous improvement of brand influence, the company will continue to maintain a steady growth trend in the post epidemic era.
In the light of diabetes business, the respiratory treatment sector grew steadily: in 2021, the company's diabetes care board revenue increased by 456 million, up 70.1% from the same period last year, showing a very bright eye. The breathing treatment sector revenue increased by 2 billion 623 million, up 16.04% over the same period last year, of which the oxygen generator increased by nearly 80%, while the ventilator decreased more than that in 2020 (the epidemic demand increased sharply in 2020), but the compound growth rate over the 2019 was over 50%. The revenue of atomizer increased by more than 113%, and the revenue of household electronic detection and in vitro diagnosis business was 1.448 billion, a year-on-year decrease of 18.11%, which was mainly due to the sharp decline in the demand for infrared thermometer (the epidemic demand increased sharply in 2020), but the compound growth rate was more than 110% compared with 2019, and the core product electronic sphygmomanometer increased by more than 35% year-on-year, showing a bright performance. In addition, the company's rehabilitation and clinical equipment business resumed growth, with a revenue of 1.228 billion, a year-on-year increase of 13.35%, and the first aid business revenue of 183 million, a year-on-year increase of 2.69%.
The three core product strategies have been steadily promoted, and the first brand of household medical devices has become more and more solid: in 2021, the company formulated the strategy of "innovating and reshaping medical devices", focused on the three core growth tracks of respiration, blood glucose, household POCT and disinfection sensing control, and actively incubated high potential businesses such as first aid, ophthalmology and intelligent rehabilitation. All businesses performed well in 2021. In 2021, the company invested 426 million in R & D, with a year-on-year increase of 6.02%. It continued to polish product quality and develop new products, including portable oxygen generator, high-performance ventilator, domestic AED, continuous glucose detection system, uric acid detection, cholesterol detection and many other products. With the continuous improvement of the company's brand strength and product strength, Yuyue, as the first brand of domestic household appliances, is expected to usher in a new wave of rapid growth stage.
Profit forecast and investment suggestions: it is estimated that the operating revenue from 2022 to 2024 will be 7.23/86/10.2 billion, and the net profit attributable to the parent company will be 1.6/19.7/2.43 billion yuan respectively, maintaining the "buy" rating.
Risk warning: the research and development of new products is not as expected; Exchange gain and loss risk; Market competition intensifies.
