\u3000\u3 China Vanke Co.Ltd(000002) 223 Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) )
Event: the company issued the 2021 annual report, and the performance met expectations. In 2021, the company achieved an operating revenue of 6.894 billion yuan, a year-on-year increase of 2.51%; The net profit attributable to the parent company was 1.482 billion yuan, a year-on-year decrease of 15.73%; The net profit deducted from non parent company was 1.319 billion yuan, a year-on-year decrease of 18.90%; The net interest rate was 21.53%, with a year-on-year decrease of 4.6pct; During this period, the cost reached 1.751 billion yuan, a year-on-year increase of 6.54%, including 426 million yuan of R & D cost. The structure of R & D team was continuously optimized, and the talent reserve and product R & D were continuously deepened; The gross profit margin was 48.29%, a year-on-year decrease of 4.4pct, mainly due to the different product structure under the epidemic situation in the same period in 2020. At the same time, the company still achieved cost reduction and efficiency increase through the lean improvement of cost management and supply chain system. The gross profit margin in 2021 increased by 6.1pct compared with 2019.
Respiration and oxygen production sector: under the background of high base, the overall growth rate remains relatively fast. In 2021, the company’s respiratory and oxygen sector achieved a revenue of 2.62 billion yuan, a year-on-year increase of 16%, of which the oxygen generator increased by nearly 80% year-on-year; The year-on-year growth rate of atomized products exceeded 113%; Respirators decreased significantly year-on-year, mainly due to the large business base affected by the epidemic in 2020, with a compound growth rate of more than 50% from 2019 to 2021. In the future, the growth of respiration and oxygen production sector is worth looking forward to. According to the lancet report, 176 million people in China have sleep apnea symptoms. The survey results of China’s healthy China action 20192030 show that the prevalence of chronic obstructive pulmonary disease in people aged 40 and over in China is 13.6%, and the total number of patients is close to 100 million. At present, the penetration rate of ventilator in China is still low. The strength of the company in the field of respiration and oxygen production has been recognized by authoritative institutions. For example, the company’s oxygen generator is recognized as a single champion product in the list of the fourth batch and the first batch of manufacturing single champions to be reviewed published by the Ministry of industry and information technology. Therefore, the company is expected to fully benefit from its leading technical strength under the background of increasing industry penetration.
Diabetes care solution sector: maintain high speed volume trend, market share, user scale and industry reputation further improved. In 2021, the company achieved a 457 million yuan revenue of diabetes care business, an increase of 70% over the same period. With the continuous improvement of word of mouth, the market share and user scale all reached a new high. China’s diabetes diagnosed diabetes has reached 116 million in 2019, according to the International Diabetes Federation (IDU) data. It is estimated that in 2030, China’s diabetes population will reach 200 million. In 2021, the company completed the equity acquisition of Zhejiang kailite, and has launched “annaitang” continuous blood glucose monitoring product. Zhejiang’s technology and technology team has been working in the field of diabetes and sensor technology for decades. It can cooperate with the company’s sales resources, software development resources and user operation capabilities in the blood sugar field, and is conducive to enhancing the competitiveness of the company’s diabetes track and the ability to provide solutions.
Infection control solutions: the market inside and outside the hospital develops in coordination, and there is considerable room for growth under the normalization of prevention and control demand. In 2021, the company realized a revenue of 890 million yuan from its sensing business, a decrease of only 6% compared with the same period under the background of high base in 2020. Since the outbreak, the strength of the company’s sense control related products and the image of disinfection sense control series products such as “Jiefurou” have become more and more popular in the market inside and outside the hospital, the normalization development momentum of various businesses is good, and the market share inside and outside the hospital has increased significantly. With excellent quality, the company’s related sensing products have become the products requisitioned by the joint prevention and control medical material support group of the State Council and the first brand of disinfection sensing control in hospitals in China. At the same time, the online platform has also maintained leading sales. With the general improvement of people’s sense of control and the continuous upgrading of the requirements for sense control disinfection in public places and hospitals, the demand of the sense control market is expected to continue to be strong in the future.
Household electronic testing and in vitro diagnosis: due to the high base number of temperature measurement lines, there was a certain decrease year-on-year, and large single products such as sphygmomanometers increased brightly. In 2021, the company’s household electronic testing and in vitro diagnosis business achieved a revenue of 1.45 billion yuan, a year-on-year decrease of 18%. Among them, the demand for infrared thermometer products decreased significantly compared with that in 2020 due to the reduction of epidemic situation. In 21 years, driven by brand reputation, product advantages and marketing power, it still had a compound growth of more than 110% compared with that in 19 years; The year-on-year growth rate of electronic sphygmomanometer products exceeded 35%, maintaining rapid growth. According to the data released by the Health Commission, the prevalence of hypertension over the age of 18 in China is expected to reach 31.9% in 2019. The prevalence of hypertension and the continuous improvement of blood pressure detection awareness urge the continuous expansion of market demand, and the related business has broad prospects. The electronic sphygmomanometer products independently developed by the company have achieved technological breakthroughs in key parts, continuous iteration and upgrading of core measurement technology and intelligent algorithms, and continuous large-scale sales in Chinese and foreign markets.
First aid sector: China’s business promotion is progressing smoothly, and the overall scale maintains growth. In 2021, the company’s first aid business achieved a revenue of 180 million yuan, a year-on-year increase of 2.7%. According to the data released by the National Cardiovascular Disease Center, it is estimated that 544000 cases of sudden cardiac death occur in China every year. Compared with developed countries, there is still a significant gap in the average ownership of AEDs in China. The company cut into the AED business through the wholly-owned acquisition of German pumikon in 2017. While promoting the sustainable development of overseas business of related products, the company also quickly participated in the laying of equipment in China’s business center, primary and secondary schools, large enterprise parks, subway and other public places. The next few years are expected to be an important stage for the rapid growth of China’s AED market. Through active layout, the company is expected to reap performance increment in this market.
Rehabilitation and clinical instruments: achieve restorative growth. In 2021, the company’s rehabilitation and clinical devices segment achieved a revenue of 1.23 billion yuan, with a year-on-year increase of 13.4%. Among them, the sales of wheelchair products continued to recover, with a year-on-year growth rate of more than 38%. The sales of acupuncture products had a good momentum, with a year-on-year growth rate of nearly 15%. Ophthalmology and all kinds of rehabilitation care products grew rapidly year-on-year. The company has been deeply engaged in the field of rehabilitation and clinical devices for many years. In the future, more high-end and intelligent rehabilitation products are expected to be continuously developed and launched. At the same time, new business lines such as ophthalmology are expected to gradually enter the harvest period.
Investment suggestion: Buy-A investment rating, 6-month target price of 28.75 yuan. We expect that the revenue growth rate of the company from 2022 to 2024 will be 8.6%, 20.5% and 19.7% respectively, and the net profit growth rate will be 8.0%, 22.2% and 20.4% respectively, with outstanding growth; Maintain the investment rating of Buy-A, and the six-month target price is 28.75 yuan, equivalent to 18 times the dynamic P / E ratio in 2022.
Risk warning: uncertainty of global epidemic situation; Uncertainty of subsequent orders of the company; New product development and promotion are not as expected.
