\u3000\u3 Guocheng Mining Co.Ltd(000688) 389 Shenzhen Lifotronic Technology Co.Ltd(688389) )
The performance grew steadily and met expectations. Recently, the company released its 21st Annual Report, with an annual operating revenue of 778 million yuan, a year-on-year increase of 40.50%; The net profit attributable to the parent company was 190 million yuan, a year-on-year increase of 32.23%, and the non net profit deducted was 163 million yuan, a year-on-year increase of 32.25%; Quarter by quarter, in Q4 of the 21st year, the revenue was 234 million yuan (year-on-year + 45.81%), the net profit attributable to the parent company was 68 million yuan (year-on-year + 33.44%), and the net profit deducted from non attributable to the parent company was 62 million yuan (year-on-year + 38.72%). At the same time, the company released the first quarterly report of 22 years. 22q1 achieved an operating revenue of 210 million yuan, a year-on-year increase of 27.7%; The net profit attributable to the parent company was 67 million yuan, with a year-on-year increase of 24.36%, and the non net profit deducted was 64 million yuan, with a year-on-year increase of 30.27%. Due to the increase of R & D investment, the performance fluctuated slightly between quarters. On the whole, the whole year of 21 met the expectations.
The product line has been continuously improved, and the organizational structure has been changed and optimized. On the one hand, the high growth of the company's performance in the past 21 years comes from the breakthrough in self-developed projects: the company has added more than 100 products registered and certified outside China in the past 21 years, including 37 new registration certificates for electrochemiluminescence detection projects and more than 80 detection projects, which further covers 12 categories, such as tumor markers, thyroid function, sex hormones, inflammation and myocardial markers, and is still improving. On the other hand, the company has optimized and reformed the marketing organization structure, significantly improved the professional ability of China and international marketing systems, improved the development and management, marketing and coverage of sales channels, and driven the growth of revenue.
Electrochemiluminescence and medical beauty products are expected to be in large quantities, and the two wheel drive is worth looking forward to. In terms of IVD, the company's first "big light-emitting" instrument ecl9000 has obtained the registration certificate on January 28, 2022 and is about to start large-scale production, which is expected to drive the unit yield of reagents to increase significantly. In terms of treatment and rehabilitation, Q1 will continue to increase R & D investment in 2022 and further focus on the market. The layout of the medical and aesthetic field in the first two years has achieved initial results in Q1 of 2022. In the future, the company is expected to cooperate with the dermatology and cosmetic surgery departments of public hospitals and private hospitals to further expand the market. In the long run, the development of the company driven by two wheels is worth looking forward to.
Profit forecast and investment suggestions
As the company has registered a large number of self-developed products in recent years and increased R & D investment, we slightly raised the prediction of the company's R & D expense rate, lowered the prediction of the company's EPS in 22-23 years to 0.63/0.87 (the original prediction was 0.66/0.91 yuan) and 1.13 yuan in 24 years. Based on the valuation of comparable companies, 30 times PE in 22 years is given, and the target price is 18.90 yuan, maintaining the "buy" rating.
Risk tips
The risk that R & D progress is less than expected, the risk that product sales are less than expected, and the risk of intensified industry competition.
