\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 82 Guangzhou Wondfo Biotech Co.Ltd(300482) )
Event: on the evening of April 24, 2022, the company released its annual report for 2021: the company achieved an annual operating revenue of 3.361 billion yuan, a year-on-year increase of 19.57%; The net profit attributable to the parent company was 634 million yuan, a year-on-year increase of 0.04%; Deduct non net profit of 551 million yuan, a year-on-year decrease of 6.74%. The net cash flow from operating activities was 665 million yuan, a year-on-year decrease of 37.38%; The basic earnings per share is 1.43 yuan, and a cash dividend of 3.00 yuan (including tax) is proposed to be distributed to all shareholders for every 10 shares.
Among them, the operating revenue in the fourth quarter of 2021 was 854 million yuan, a year-on-year increase of 33.90%; The net profit attributable to the parent company was 07 million yuan, a year-on-year decrease of 89.45%; Deduct non net profit of -03 million yuan, a year-on-year decrease of 109.64%. The net cash flow from operating activities was 395 million yuan, a year-on-year decrease of 12.86%.
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 2.625 billion yuan, a year-on-year increase of 276.87%; The net profit attributable to the parent company was 904 million yuan, a year-on-year increase of 481.32%; The net profit of China's Chinese mainland has been deducted from 899 million yuan, an increase of 535.50% over the same period last year. We expect the main companies to fully support the work of fighting against the epidemic in China's Hongkong and Mainland China, and COVID-19 has detected a substantial increase in the revenue of products. The net cash flow from operating activities is - 357 million yuan, which is expected to be related to the increase of accounts receivable, prepayments and covid-19 goods preparation. The recovery of routine business is obvious, and covid-19 business still contributes a large amount of revenue
(1) routine business: in 2021, the company achieved sales revenue of about 1.916 billion yuan for four product lines, with a year-on-year increase of 38.18%. ① The revenue from chronic disease management and testing was 916 million yuan, a year-on-year increase of 60.72%. In the Chinese market, with the covid-19 epidemic under effective control, the outpatient volume and sample testing demand of medical institutions continue to recover; The installed capacity of immunofluorescence in overseas markets has increased significantly, and some detection projects have explosive growth. ② The business income of infectious diseases was 523 million yuan, a year-on-year increase of 27.95%. With the overall promotion of in-hospital market business, China's inflammatory factors have increased steadily, and the bidding of conventional infectious diseases in overseas developing countries is also gradually restarted. ③ The revenue from drug (drug abuse) testing was 270 million yuan, with a year-on-year increase of 12.16%. The drug testing business in the United States has achieved a relatively stable growth on the whole. ④ The income from eugenics testing was 207 million yuan, a year-on-year increase of 23.86%. China's jinxiuer brand continues to lead in the category of high-end accurate ovulation detection, and has achieved rapid growth overseas.
(2) covid-19 business: in 2021, the company achieved sales revenue of covid-19 testing reagents of about 1.145 billion yuan, with a year-on-year increase of 9.61%. The company's covid-19 antigen self-test reagent (colloidal gold method) has successively passed the certification of Germany, Spain, Italy, Portugal, Luxembourg, Austria and other countries, and obtained the EU CE certification in early June. At present, the company's testing products have covered more than 100 countries and regions in Europe, Asia, Latin America and the Middle East.
(3) strategic breakthrough: ① chemiluminescence: in December 2021, the company wholly acquired Tianshen medical, and its "single copy" luminous product design can form effective synergy with the company's self-developed tubular luminous products. ② Molecular diagnosis: the company's self-developed youbosi U-box was officially approved in China in March 2022 and appeared in major exhibitions with youkasi U-card system. Meanwhile, Wanfu Katis and AstraZeneca have carried out strategic cooperation in the field of accurate diagnosis and treatment of tumors. ③ Pathology business: in 2021, the full-automatic immunohistochemical staining machine pa3600 and secondary antibody system with independent intellectual property rights were officially launched to provide a variety of cutting-edge characteristic primary antibodies. At present, it has been put into trial in a number of top three benchmark terminals in China.
The price fluctuation of covid-19 test reagent products affects the decline of gross profit margin and net profit margin
In the whole year of 2021, the company's comprehensive gross profit margin decreased by 10.56pct to 58.46% year-on-year, of which the gross profit margin of infectious disease testing (including covid-19 testing) decreased by 21.33pct to 55.24% year-on-year. We expect that it is mainly due to the decline in the price of covid-19 testing reagent products in the second half of the year; The sales expense ratio decreased by 3.28pct to 19.17% year-on-year, with a year-on-year increase of 2.09%; The management expense ratio increased by 1.19 PCT to 7.91% year-on-year, mainly due to the equity payment fee of 431916 million yuan generated by the company's new employee equity incentive plan, as well as the increase of employee salary and consulting service fee; The R & D expense ratio increased by 1.70pct to 11.64% year-on-year, with a year-on-year increase of 39.96%, mainly due to the company's increased investment in talents and R & D; The financial expense ratio increased by 0.46pct to 1.46% year-on-year, mainly due to the interest amortization expense of convertible bonds of 245075 million yuan; Under the comprehensive influence, the overall net profit margin of the company decreased by 3.12pct to 18.82% year-on-year.
Among them, in the fourth quarter of 2021, the comprehensive gross profit margin, sales expense rate, management expense rate, R & D expense rate, financial expense rate and overall net profit margin were 37.30%, 12.02%, 9.32%, 13.40%, 2.67% and 0.70% respectively, with changes of -23.13pct, -9.18pct, + 4.14pct, + 3.69pct, -0.52pct and -7.05pct respectively, of which the comprehensive gross profit margin decreased significantly, We expect that it is mainly related to the decline in the price of covid-19 detection reagent products and the high reserve cost of relevant raw materials. In addition, the company has withdrawn bad debt reserves of RMB 199471 million in the current period.
In the first quarter of 2022, the comprehensive gross profit margin, sales expense rate, management expense rate, R & D expense rate, financial expense rate and overall net profit rate were 63.91%, 13.31%, 2.80%, 4.51%, 0.29% and 34.35% respectively, with changes of -6.59pct, -11.64pct, -6.23pct, -7.36pct, -0.30pct and + 12.46pct respectively.
Profit forecast and investment rating: Based on the analysis of the company's core business segment, we expect the operating revenue to be 5.868 billion / 4.731 billion / 5.622 billion respectively from 2022 to 2024, with a year-on-year growth rate of 75% / - 19% / 19% respectively; The net profit attributable to the parent company was 1.511 billion / 1.058 billion / 1.277 billion respectively, an increase of 138% / - 30% / 21% respectively; EPS is 3.40/2.38/2.87 respectively, corresponding to 14 times PE in 2022 according to the closing price on April 22, 2022. Maintain the "buy" rating.
Risk warning: the risk of continuous infection of New Coronavirus pneumonia. The risk of increasingly fierce market competition; Risk of policy change; Distribution management risk.
