\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 42 Tellgen Corporation(300642) )
Event: on the evening of April 22, 2022, the company released its annual report for 2021: the company achieved an annual operating revenue of 655 million yuan, a year-on-year increase of 33.7%; The net profit attributable to the parent company was 161 million yuan, a year-on-year increase of 33.62%; Deduct non net profit of 123 million yuan, with a year-on-year increase of 24.04%. The basic earnings per share is 0.987 yuan, and it is proposed to distribute a cash dividend of 2.5 yuan (including tax) for every 10 shares to all shareholders. On the same day, the company released the report for the first quarter of 2022. In the first quarter, the company achieved an operating revenue of 145 million yuan, a year-on-year increase of 22.30%; The net profit attributable to the parent company was 5.2701 million yuan, a year-on-year decrease of 77.10%; Deduct non net profit of RMB 3.0651 million, a year-on-year decrease of 85.51%; The basic earnings per share is 0.032 yuan.
Throughout the year, the sales of reagents recovered steady growth, and the revenue from exploring overseas markets increased by more than 400%. In terms of products, ① in 2021, the company realized the sales revenue of in vitro diagnostic reagents of 562 million yuan, accounting for 85.86% of the operating revenue, with a year-on-year increase of 34.82%, and the gross profit margin increased by 1.19 PCT to 77.54%. ② The company realized the sales revenue of in vitro diagnostic instruments of 88 million yuan, with a year-on-year increase of 31.13%, and the gross profit margin decreased by 7.14 PCT to 12.50% year-on-year; And completed the installation (including sales) of 859 various instruments, with a year-on-year increase of 32%. Although the successful installation of these instruments has increased the company’s sales expenses, it will bring more reagent sales revenue in the future, laying the foundation for the continuous improvement of the company’s product revenue.
In terms of regions, ① in 2021, the company achieved an operating revenue of 610 million yuan in China, with a year-on-year increase of 26.69%. By the end of 2021, the company has more than 260 marketing personnel (including marketing personnel), and its products have covered more than 1500 end users in 31 provinces and cities across the country, of which tertiary hospitals account for 70.96% of hospital customers. In 2021, the number of newly developed tertiary hospital customers exceeded 150. ② The company achieved an overseas revenue of 45.036 million yuan, a year-on-year increase of more than 400%. Its products have been exported to many countries in Europe and Southeast Asia; At the same time, actively promote the overseas certification and international trademark registration of the company’s products. In 2021, 27 new products passed the CE self declaration. The products mainly focus on covid-19, respiratory tract, heart markers and other fields.
The net profit margin was stable at 24.6%, and the covid-19 epidemic affected the operating cash flow, which decreased year-on-year. The company’s comprehensive gross profit margin in 2021 increased slightly by 0.46pct to 66.85%, mainly because the gross profit rate of in vitro diagnostic reagent products increased slightly; The sales expense ratio increased by 2.34pct to 27.71% year-on-year, mainly due to the large increase in sales expenses year-on-year due to the growth of personnel and the installation of instruments; The management fee ratio increased by 1.88pct to 6.70% year on year, and the share based payment increased by 7.157 million yuan year on year due to the implementation of equity incentive; The R & D expense ratio decreased by 1.45pct to 11.11% year on year, and the financial expense ratio decreased by 0.41pct to -0.61% year on year; Under the comprehensive influence, the overall net profit margin of the company decreased by 0.02pct to 24.60%.
In 2021, due to the continuous impact of covid-19 epidemic, the purchase of covid-19 related equipment and supporting reagents increased the cash outflow from operating activities, and the increase of sales, R & D and management personnel increased the cash outflow from operating activities, resulting in a year-on-year decrease of 14.69% in net cash flow from operating activities to 826135 million yuan.
The epidemic has been repeated in many places. The change of product structure in the first quarter has greatly reduced the net profit. In the first quarter of 2022, the company achieved an operating revenue of 145 million yuan, a year-on-year increase of 22.30%. Due to the impact of the epidemic, the company’s main products, tumor related testing products, have significantly reduced the procurement of physical examination customers and hospital customers in Beijing, Guangdong and other markets. Therefore, although the company has increased the market promotion of supporting instruments and consumables required for covid-19 testing, the company’s operating revenue has increased; However, as the gross profit margin of supporting instruments and consumables is much lower than that of the company’s independent testing reagent products, the net profit decreased significantly year-on-year. It is expected that after the epidemic situation improves, the sales of the company’s main products are expected to return to the normal level.
Profit forecast and investment rating: Based on the analysis of the company’s core business segment, we expect the operating revenue to be 852 million / 1062 million / 1314 million respectively from 2022 to 2024, with a year-on-year growth rate of 30% / 25% / 24% respectively; The net profit attributable to the parent company was 197 million / 243 million / 304 million respectively, an increase of 22% / 24% / 25% respectively; EPS is 1.20/1.48/1.86 respectively, corresponding to 19 times PE in 2022 according to the closing price on February 22, 2022. Maintain the “buy” rating.
Risk warning: the risk of continuous infection of New Coronavirus pneumonia. The risk of long preparation time for new products to enter the market; Product quality risk; Market competition intensifies risks; Risk of regulatory policy changes.
