\u3000\u3 China Vanke Co.Ltd(000002) 223 Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) )
Performance Brief
On April 22, 2022, the company issued its annual report for 2021. In 2021, the company realized a revenue of 6.894 billion yuan, a year-on-year increase of + 3%; The net profit attributable to the parent company was 1.482 billion yuan, a year-on-year increase of - 16%; The net profit deducted from non parent company was 1.319 billion yuan, a year-on-year increase of - 19%;
In terms of quarters, Q4 company achieved a revenue of 1.584 billion yuan in 2021, a year-on-year increase of - 16%, and a net profit attributable to the parent company of 131 million yuan, a year-on-year increase of - 47%, deducting a net profit not attributable to the parent company of 88 million yuan, a year-on-year increase of - 62%.
Business analysis
The decline of covid-19 related businesses affects the short-term growth rate, and the conventional business continues to grow. The business scale of the company's ventilator products decreased significantly year-on-year in 2020, mainly due to the large business base affected by the epidemic in 2020, but the compound growth rate of two years in 2019 exceeded 50% year-on-year, and the routine sales were carried out well. Affected by the difference of epidemic demand, the business scale of infection control solutions decreased by 6% year-on-year, but the market share of products such as "Jiefurou" both inside and outside the hospital increased. Diabetes care, rehabilitation equipment and other routine business continued to grow.
A series of new products have been continuously approved, and the cost side investment has accelerated. The company's comprehensive gross profit margin reached 48.29% in 2021, with a year-on-year increase of -4.4pct; The annual net interest rate reached 21.53%, a year-on-year increase of -4.6pct. The change of profit margin is directly related to the different product structure of the company under the epidemic situation in the same period of 2020. The annual sales expense rate was 13.71%, with a year-on-year increase of + 2.5pct. In 2021, a series of new products of the company continued to be approved for listing, and the scale of sales promotion team also increased; The annual R & D expense rate was 6.17%, with a year-on-year increase of + 0.2pct. The company has always attached importance to R & D investment, established R & D centers in many places around the world, and continued to launch new products on the core track.
AED products were successfully approved in China, helping the company quickly seize the market. Jiangsu pumikang, a wholly-owned subsidiary of the company, received the nmpa registration certificate of AED products on April 18. The company's AED products have a high reputation in the global medical emergency industry. The acquisition of Chinese registration certificate will accelerate its localization process, which is expected to play a positive role in strengthening the cost side advantage of business and improving the overall gross profit margin of the emergency sector. It is expected that the company will obtain more market share through strategic layout and strong product competitiveness.
Profit forecast and investment suggestions
We are optimistic about the development prospects of the company in the three core growth tracks of respiration, blood glucose, household POCT and disinfection sensing control. It is estimated that from 2022 to 2024, the company's net profit attributable to the parent company will be RMB 1.681 billion, 1.936 billion and 2.247 billion respectively, with a year-on-year increase of 13%, 15% and 16%, EPS of RMB 1.68, 1.93 and 2.24 respectively, and the current price corresponding to PE is 15, 13 and 11 times, maintaining the "buy" rating.
Risk tips
Acquisition integration is less than expected risk; Overseas market expansion is less than expected risk; New product R & D is less than expected risk; Goodwill risk.
