\u3000\u3 China Vanke Co.Ltd(000002) 223 Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) )
Key investment points
Event: the company released the annual report of 2021. The annual revenue was 6.89 billion yuan (+ 2.5%), the net profit attributable to the parent company was 1.48 billion yuan (- 15.7%), the net profit not attributable to the parent company was 1.32 billion yuan (- 18.9%), and the net operating cash flow was 1.2 billion yuan (- 57.6%).
The performance is in line with expectations, and the profitability returns to the endogenous position. Quarterly, the revenue of Q1 / Q2 / Q3 / Q4 in 2021 was 16.6/19.3/17.2/1.58 billion yuan (+ 19.5% / - 4.9% / + 20.3% / - 15.6%), and the net profit attributable to the parent company in 2021 was 4.6/5/3.9/130 million yuan (+ 20% / - 31.7% / - 0.5% / - 47.4%) respectively. The performance was in line with expectations. From the perspective of profitability, the gross profit margin in 2021 was 48.3% (- 4.4pp), which was mainly due to the high gross profit contribution of anti epidemic products and the rise in the price of raw materials of some products in 2020. The four rates totaled 25.4% (+ 1pp), of which the sales expense rate increased by 2.5pp to 13.7%, the management expense rate and R & D expense rate were relatively stable, the financial expense rate decreased by 2PP due to exchange rate fluctuations, and the final net profit attributable to the parent company was 21.5% (- 4.7pp), Profitability returns to a healthy endogenous position.
The three core track businesses have returned to a healthy track. In terms of business, the revenue of respiratory treatment solutions in 2021 was 2.62 billion yuan (+ 16%), of which the oxygen generator increased by nearly 80% due to overseas expansion, the atomizer increased by 113%, and there was a lot of decline under the high base of ventilator. As a potential single product, the compound growth rate of routine revenue of ventilator exceeded 50% compared with 2019; The diabetes care solution revenue was 460 million yuan (+70.1%), and the market share and user scale were continuously improved. CGM products began to be admitted to hospital in September. The revenue of infection control solutions is 890 million yuan (- 6%), mainly due to the high base of the epidemic in 2020. It is expected that the long-term market share of this business segment will continue to increase in the future; The above three core track businesses have been restored to a healthy track, and other cornerstone businesses and incubation businesses have also achieved good performance in excluding epidemic products. For example, the growth rate of electronic sphygmomanometers is more than 35%, the growth rate of wheelchair products is more than 38%, and the growth rate of Acupuncture and moxibustion is nearly 15%.
The new strategic positioning is clear, and the platform device leader starts a new chapter from 2021. In May 2021, the company sorted out its new strategy. Its core business focused on three sectors: respiration, POCT and sensing control. These three sectors have the characteristics of high gross profit, high growth and large space. In the future, they are expected to become the core driving force. At the same time, with the supplement of incubation business (first aid, ophthalmology and rehabilitation) and cornerstone business (blood pressure monitoring, body temperature monitoring, traditional Chinese medicine equipment and surgical instruments) and the promotion of internationalization, the company's strategy becomes clearer and clearer. In June 2021, the company released the first phase of employee stock ownership plan in 2021. In September 2021, the acquisition and delivery of 51% equity of kailite were completed, and the company successfully entered the broad market of continuous ambulatory glucose monitoring (CGM). "New management + new strategy + incentive + M & a" multi factor catalysis. It is expected that 2021 will be a new starting point for Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) as a leading platform device.
Profit forecast and investment suggestions: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 1.53, 1.81 and 2.12 billion yuan respectively, corresponding to EPS of 1.52, 1.80 and 2.11 yuan, corresponding to PE of 16, 14 and 12 times, maintaining the "buy" rating.
Risk tip: the strategic promotion is less than expected, the risk of exchange rate fluctuation, and the promotion of new products is less than expected.
