\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 32 Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) )
Event: on April 22, 2022, the company released its annual report for 2021. The operating revenue was 2.545 billion yuan (+ 15.97%), with a year-on-year increase of 32.22% after deducting covid-19 luminous reagent business revenue. The net profit attributable to the parent company was 973 million yuan (+ 3.68%), and the non net profit attributable to the parent company was 883 million yuan (+ 3.06%). In 2022q1, the company achieved a revenue of 743 million yuan (+ 39.53%), a net profit attributable to the parent company of 308 million yuan (+ 83.46%) and a net profit not attributable to the parent company of 286 million yuan (+ 98.17%).
After the epidemic was controlled, the performance recovered, and the price reduction strategy opened the market. In 2021, the epidemic situation was stable and the performance increased steadily. Quarterly, the performance of the first quarter recovered rapidly and grew steadily throughout the year. Q1-Q4 revenue was 532 million yuan / 693 million yuan / 668 million yuan / 651 million yuan respectively, with a year-on-year increase of 84.08% / 1.76% / 11.33% / 4.32% respectively. In terms of subregions, the proportion of Chinese business increased to 69.90%. The revenue of China and overseas was 1.779 billion yuan / 766 million yuan respectively, with a year-on-year increase of 37.06% / – 3.04% respectively. Mainly due to the recovery of routine business due to the controllable epidemic situation in China and the adjustment of covid-19 epidemic prevention policies in overseas countries, the overseas covid-19 luminous reagent business decreased significantly. In addition to the new reagent demand of newly expanded medical customers in 2020, China’s sales revenue and profit increased significantly year-on-year. In order to strengthen the market development of instrument products, the company has adopted a more active sales policy in both Chinese and foreign markets, reduced the sales price of instruments as a whole, transferred part of the profits, reduced the gross profit margin to 71.15% (- 7.8%), and the gross profit reached 1.811 billion yuan (+ 6.91%). The share based payment fees of restricted stocks led to the decline of the net profit margin, which was 38.3% (+ 10.51%).
With the substantial growth of China’s revenue and the rapid growth of global installed capacity, the promotion of maglumix8 has significantly increased the amount of single machine reagent. The epidemic situation in China has been controlled. The promotion of chemiluminescence analyzer maglumix8 has driven the sales of reagents in China to increase by 26.36% year-on-year. The reagent consumption of single machine has increased significantly, which has greatly improved the business income in China. The revenue of reagents and instruments was 1.901 billion yuan / 638 million yuan respectively, with a year-on-year increase of 11.50% / 31.81%. In terms of products, 1) reagents: affected by foreign epidemic prevention policies, the revenue of chemiluminescence reagent business related to overseas epidemic has been greatly reduced. The revenue of reagents in China and abroad was 1.433 billion yuan / 468 million yuan respectively, with a year-on-year increase of 23.36% / – 18.05% respectively. After covid-19 reagent was removed overseas, the growth rate of reagent business was 60.05%. 2) Instrument: the continuous promotion of high-speed chemiluminescence analyzer maglumix8 has effectively expanded the number of large medical terminal customers in China and promoted the rapid growth of the number of installed machines in China. In 2021, 1673 automatic chemiluminescence instruments were installed in the Chinese market, of which 601 (47.67%) were installed in maglumix8. In the first quarter of 2022, the company completed the sales / installation of 1648 automatic chemiluminescence instruments (+ 42%), of which 148 were sold / installed by maglumix8.
The company attaches importance to R & D investment and has made new progress in the registration of many products. In 2021, the company invested heavily in R & D, with R & D expenses of 215 million yuan, and the R & D expense rate was 8.48%, 42.38% year-on-year. It has 268 device registration certificates and 58 new ones. In terms of products, 1) reagents: 10 projects have entered and have entered the review stage of the food and drug administration, and 78 new reagent products have entered or completed the clinical evaluation stage. 2) Instruments: four analyzers have entered the registration stage, including maglumix6, biosaysc8, biosayse6 and biolumicx8.
Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) as the domestic leader of in vitro diagnosis, it is expected to fully benefit from the domestic substitution of chemiluminescence and overseas market. The in vitro diagnosis industry has been growing steadily for a long time. Immunodiagnosis is the largest sub industry of in vitro diagnosis, and chemiluminescence leads the growth of immunodiagnosis market. The company is a leading enterprise in China National Chemical Engineering Co.Ltd(601117) lighting industry. The company has installed more than 20600 full-automatic chemiluminescence immunoanalyzers worldwide, and 162 chemiluminescence immunodiagnostic reagent projects sold worldwide; The speed of malgumix8 instrument is up to 600 test / h, which is one of the fastest models at home and abroad. By virtue of the number of installed reagents and technologies, the company has become a leading competitor in the global market. In the short term, the high-speed machine X8 drives the increase of China’s installed capacity and unit output to realize import substitution. In the long term, the light-emitting instrument has the advantage of cost performance and will occupy the overseas market. The company has the potential to become an international leader in chemiluminescence.
Profit forecast and investment rating: we expect the company’s revenue from 2022 to 2024 to be RMB 33.34/42.75/5.335 billion respectively, 31.00% / 28.20% / 24.80% year-on-year respectively. The net profit attributable to the parent company was RMB 1.319/1.754/2.222 billion respectively, with a year-on-year increase of 35.42% / 33.03% / 26.65% respectively. EPS is 1.68/2.23/2.82 yuan respectively, and the corresponding PE is 20.27/15.24/12.03 times respectively. It is covered for the first time and given the investment rating of “buy”.
Risk tips: the fierce competition intensifies the risk, the price reduction is higher than expected, the R & D progress is lower than expected, the risk of overseas market fluctuation, the risk of the continuous impact of the new epidemic, and the risk of Income Fluctuation in overseas market
