\u3000\u3 Guocheng Mining Co.Ltd(000688) 677 Qingdao Novelbeam Technology Co.Ltd(688677) )
Summary of this issue:
Event: the company released the 2021 annual report and the first quarterly report of 2022. In 2021, the annual revenue was 310 million yuan, a year-on-year increase of + 12.53%, and the net profit attributable to the parent company was 118 million yuan, a year-on-year increase of + 22.19%. The net profit attributable to the parent company after deduction was 94 million yuan, a year-on-year increase of + 12.02%. In the first quarter of 2022, the revenue was 93 million yuan, a year-on-year increase of + 39.21%, and the net profit attributable to the parent company was 36 million yuan, a year-on-year increase of + 36.98%. The net profit attributable to the parent company after deduction was 34 million yuan, a year-on-year increase of + 34.19%.
Comments:
In 2021, the company overcame the impact of epidemic and exchange rate and achieved rapid growth in performance. In 2021, the exchange rate fluctuation had a great impact on the company’s sales revenue, resulting in the reduction of the company’s annual operating revenue and operating profit by more than 15 million yuan. However, the company still achieved high-quality growth of operating revenue, operating profit and deducting non net profit throughout the year. The business of medical endoscopic instruments and optical products of the main product lines achieved steady growth. In the first half of the year, under the influence of the epidemic in the United States, the annual revenue of medical endoscopic instruments was about 228 million yuan, a year-on-year increase of 12.57%. The revenue of optical products was 82 million yuan, a year-on-year increase of 13.42%.
The company’s performance achieved rapid growth in the first quarter of 2022. In the first quarter of 2022, the company’s demand for endoscope accessories increased year-on-year, which promoted the company’s performance to achieve rapid growth. In the first quarter, the revenue was 93 million yuan, a year-on-year increase of 39.21%, and the net profit attributable to the parent company was 36 million yuan, a year-on-year increase of 36.98%. With the gradual dissipation of the impact of the overseas epidemic, the sales of Stryker hard mirror will grow rapidly, which will bring about the continuous increase of ODM orders. Therefore, the company’s performance in 2022 will continue to benefit.
Maintain high investment in R & D and lay the foundation for growth with technological advantages. The company invested 41 million yuan in R & D in 2021, with a year-on-year increase of 33.71%. In the first quarter of 2022, the company invested 11 million yuan in R & D, with a year-on-year increase of 45.17%, and continued to maintain rapid growth. The 4K fluorescent laparoscope developed by the company for American customers has completed the R & D and trial production process, and is ready to realize mass production in the second half of 2022; The self branded endoscope light source and 1080p camera system have completed product registration and obtained production license in 2021, and 4K fluorescent camera system has also obtained product registration and production license at the end of February 2022. At present, it has begun production and sales. The company consolidates its technical advantages through continuous R & D investment. As a major upstream supplier, the company can benefit from the growth of the global fluorescent endoscope industry for a long time.
Profit forecast and investment rating: we estimate that the company’s operating revenue from 2022 to 2024 will be RMB 4.33/5.42/664 million respectively, with a growth rate of 39.9% / 25.1% / 22.5%, the net profit attributable to the parent company will be RMB 165 / 2.14/261 million respectively, with a growth rate of 40.3% / 29.7% / 21.9%, and the corresponding PE will be 38 / 29 / 24x respectively. Considering that the company has full competitive advantages in the upstream, the performance will grow rapidly in 2022, so it maintains the “buy” rating.
Risk factors: the risk of trade friction, and the epidemic situation in China and overseas exceeded expectations.
