\u3000\u3 China Vanke Co.Ltd(000002) 223 Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) )
Matters:
The company released the annual report of 2021: the annual revenue was 6.894 billion yuan (+ 2.51%), the attributable net profit was 1.482 billion yuan (- 15.73%), and the attributable net profit after deduction was 1.319 billion yuan (- 18.90%). Meet expectations. Dividend plan: 3.00 yuan (including tax) for every 10 shares.
Ping An View:
The epidemic demand subsided and the operation returned to normalization
The global demand for epidemic prevention and control in 2021 was lower than that in 2020. With the return of social operation to normalization, the company's product sales structure changed again. The sales of products with high correlation with the epidemic situation, such as respirators in the respiratory treatment sector, disinfection products in the sensing and control sector, frontal temperature guns in the household electronics sector, have decreased. The regular treatment or healthy lifestyle products have recovered, and the rehabilitation and operation devices of clinical sectors, electronic blood glucose meters and consumables of the diabetes care department have achieved a good growth.
The change of product structure has also led to significant changes in some financial data of the company in 2021 compared with the previous year. After the demand for ventilator and other products with strong profitability decreased, the overall gross profit margin in 2021 was 48.29%, a year-on-year decrease of 4.39pp. In terms of expense ratio, the sales expense ratio is greatly affected by the increase in the proportion of conventional products, which is 13.71% (+ 2.50pp) in 2021, in addition, the management expense ratio is 5.64% (+ 0.29pp), and the R & D expense ratio is 6.17% (+ 0.20pp). In 2021, the company's operating cash flow also tended to return to normal, while there was more demand for early payment in 2020, resulting in a year-on-year decrease of 57.57% in net operating cash flow during the reporting period.
New categories continue to be launched, and overseas layout adds bricks and tiles
The company achieves continuous growth by continuously launching new products, including exploring new product fields and upgrading and iterating the existing product categories. In the past few years, the company has increased R & D investment, and the pace of pushing through the old and bringing forth the new has accelerated. The listing of continuous blood glucose monitoring system (CGM) is expected to change the traditional blood glucose control mode and meet the high-level needs of accurate blood glucose monitoring. Cardiac defibrillation equipment (AED) obtained the Chinese registration certificate in 2022. The localization of the product can alleviate the shortage of production capacity to a certain extent. On the other hand, it is also conducive to participating in various bidding activities in China. In addition, among the existing product lines, the company also launched a number of upgraded products to bring more functions and more convenient use experience. During the epidemic period, the export of products increased significantly, and the newly expanded overseas team of the company accumulated rich experience in going to sea during this period. In 2021, the company carried out various marketing activities in Europe, Southeast Asia and other places, and began to establish a localized service team to strengthen the company's ability to control and serve the overseas market. In 2022, the company is expected to make new breakthroughs in overseas medical institutions and family health terminals.
Maintain a "strongly recommended" rating. The company successfully achieved the restorative growth of non epidemic products under the condition of high epidemic base. Although the switching of product categories will have a certain impact on the company's performance in the short term, as the social operation tends to be stable, the company's previously accumulated new products, strengthened new capabilities and new markets will gradually reflect the value. According to the recent changes of epidemic situation outside China, the forecast for 2024 is adjusted and added. The EPS is predicted to be 1.58, 1.87 and 2.20 yuan from 2022 to 2024 (compared with 1.76 and 2.06 yuan from 2022 to 2023), maintaining the "strongly recommended" rating.
Risk tips: 1) business integration risk: if the integration is not smooth after extension expansion, it may affect the effect of M & A; 2) Risk of product sales falling short of expectations: if the company's new product sales cannot be increased in time, it may affect the rhythm of product iteration; 3) Risk of product price reduction: some products of the company are sold to hospitals, so there is a certain price reduction pressure.
