\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 88 Winner Medical Co.Ltd(300888) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022, and achieved an annual operating revenue of 8.037 billion yuan, a year-on-year increase of – 35.87%; The net profit attributable to the parent company was 1.239 billion yuan, a year-on-year increase of – 67.48%; It is proposed to issue a cash dividend of 9 yuan for every 10 shares. 22q1 company achieved an operating revenue of 2.322 billion yuan, a year-on-year increase of + 2.37%; The net profit attributable to the parent company was 357 million yuan, a year-on-year increase of – 25.69%.
Comments:
The export business is still affected by the high base, and the channels of Chinese hospitals and e-commerce expand smoothly. In 2021, the company’s medical business realized a revenue of 3.922 billion yuan, a year-on-year increase of – 56%. In terms of channels, overseas / Chinese hospitals / Chinese pharmacies / e-commerce channels achieved revenue of RMB 16.9/12.5/3.3 (estimated value) / 680 million respectively, with a year-on-year increase of – 71.7% / + 12.5% / – 31.5% / + 37% respectively. The overall performance of overseas business was dragged down by the decline in sales of disease control and protection products; E-commerce channels have benefited from multi platform operation and improved brand influence, achieving rapid growth; The number of hospitals covered by channels increased from 3000 to 4000 +. 22q1 medical business achieved a revenue of 1.407 billion yuan, a year-on-year increase of – 1.7%. Overseas / domestic revenue reached RMB 330 million / 1.08 billion respectively, with a year-on-year increase of – 47.7% / + 34%, of which Chinese hospitals / e-commerce were + 59.2% / flat year-on-year.
Offline channel expansion & online operation quality improvement, steady growth of consumer business. In 21 years, the company’s consumer goods business realized an income of 4.054 billion yuan, a year-on-year increase of + 15.3%. In terms of channels, e-commerce / offline stores / supermarkets / major customers achieved revenue of RMB 25.4/12.3/2/0.8 billion respectively, with a year-on-year increase of 31.6% / 15.4% / 2.5% / flat respectively. 81 to 345 new stores were added in 21 years, with same store sales of more than two years + 14.5%; Online promotion of new customer transformation and re purchase, and continuous layout of multiple platforms. The revenue of consumer goods business in 22q1 was 890 million yuan, a year-on-year increase of + 8.8%, and that of stores / supermarkets / e-commerce was + 14.3% / 45.5% / – 8% respectively year-on-year. Customer expansion and new stores promoted the steady growth of offline channels. The epidemic impacted logistics and dragged down the sales performance of e-commerce.
Normalization of prices of epidemic prevention products & increased publicity and promotion of epidemic prevention products, and short-term pressure on profitability. In 2021, the company’s gross profit margin was – 9.7pct to 49.9%, and the gross profit margin of medical / consumer goods business decreased by 14 / 3pcts to 47.5% / 52.2% respectively, mainly due to the normalization of epidemic prevention product prices and the rise of raw material prices. The rate of sales / management / R & D expenses increased by 12.2/2.2/0.4pct to 24.8% / 5.7% / 3.7% respectively, mainly due to the company’s increased brand publicity and marketing promotion. Under the combined influence, the net interest rate is – 15.1pct to 15.4%.
Investment suggestion: the company continues to optimize the channel structure and actively layout high-end dressings. Affected by the normalization of epidemic prevention products and increasing marketing promotion, the performance is under pressure in the short term and the long-term high-quality growth can be expected. Considering the continuous impact of the epidemic, we lowered the company’s profit forecast. It is expected that the net profit attributable to the parent company in 22 / 23 / 24 will be 1.38/16.2/1.9 billion yuan (the original forecast value was 1.64/2.04 billion yuan in 22 / 23), corresponding to 18 / 15 / 13 times of the current market value PE respectively, maintaining the “buy” rating.
Risk tip: the epidemic affects consumption, overseas demand slows down, and the prices of raw materials and shipping rise.
