\u3000\u3 Shengda Resources Co.Ltd(000603) 222 Chimin Health Management Co.Ltd(603222) )
2022q1 performance meets expectations. In 2022q1, the company realized an operating revenue of 285 million yuan, a year-on-year increase of 12.5%, a net profit attributable to the parent company of 71 million yuan, a year-on-year increase of 76.94%, a net profit deducted from non attributable to the parent company of 62 million yuan, a year-on-year increase of 54.99%, and a net cash flow from operating activities of 110 million yuan, a year-on-year increase of 355.81%. The rapid growth of performance is mainly due to the fact that the company’s safety syringe and safety injection needle business is in short supply and in a period of rapid volume. In addition, the company has turned losses into profits in Boao International Hospital in Hainan, bringing greater performance flexibility.
Strong improvement in profitability. The gross profit margin of 2022q1 company was 53.58% and the net profit margin was 26.29%, with a year-on-year increase of 5.78pct and 10.61pct respectively, both reaching a record high. The sales expense rate, management expense rate, financial expense rate and R & D expense rate of 2022q1 company were 13.07%, 10.18%, 2.67% and 2.75% respectively, with a year-on-year decrease of -1.57pct, 0.69pct, 1.23pct and -0.14pct.
Safe syringes and Boao International Hospital bring good opportunities for leapfrog development. In 2021, the company’s safety syringe and safety injection needle business ushered in rapid growth. With the partner RTI company further opening the international market, the company’s safety syringe demand increased significantly and the production capacity expanded continuously, from 500 million pieces / year in 2020 to 850 million pieces / year in 2021. It is expected that the production capacity will continue to increase in 2022, reaching 1.34 billion pieces / year. Boao international hospital is positioned as a high-end hospital. It is characterized by regenerative medicine and introduces high-end talents at home and abroad. In 2022q1, it will turn losses into profits. With the gradual control of the epidemic, the number of hospital visits will rise rapidly and the performance will usher in rapid growth.
Profit forecast and investment rating: it is estimated that the company’s operating revenue from 2022 to 2024 will be 14.42, 17.35 and 2.077 billion yuan respectively, with a year-on-year increase of 31.2%, 20.3% and 19.7%, and the net profit attributable to the parent company will be 266, 326 and 433 million yuan respectively, with a year-on-year increase of 80.4%, 22.7% and 32.7%. The P / E ratio of the corresponding company will be 21.69, 17.68 and 13.33 times. It will be covered for the first time and given an increase rating.
Stock price catalyst: safety syringe successfully entered medical insurance in China; The acceptance of pre filled catheter irrigator in hospital terminal is high; Boao international hospital has significantly increased the volume of diagnosis and treatment; The new Institute of Ezhou No. 2 Institute opened successfully.
Risk factors: the risk of deterioration of China US relations; Risk of product sales falling short of expectations; Risks of intensified industry competition; Risk of medical malpractice.
