\u3000\u3 China Vanke Co.Ltd(000002) 223 Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) )
Key investment points
Event: in 2021, the company achieved an operating revenue of 6.89 billion yuan, a year-on-year increase of 2.51%; The net profit attributable to the parent company was 1.48 billion yuan, a year-on-year decrease of 15.73%; The net profit attributable to the parent company after non deduction was 1.32 billion yuan, a year-on-year decrease of 18.90%.
The high base background dragged up the apparent performance and the diabetes sector showed bright eyes: the company’s apparent growth rate declined in 2021, due to the high base effect caused by the surge in demand for anti epidemic products in 2020. In terms of sectors, the company’s respiratory therapy sector achieved a revenue of 2.62 billion yuan in 2021, with a year-on-year increase of 16.04%; Diabetes care board realized operating income of 460 million yuan, an increase of 70.10% over the same period last year. The first aid sector achieved a revenue of 180 million yuan, a year-on-year increase of 2.69%; The revenue of rehabilitation and clinical devices reached 120 million yuan, a year-on-year increase of 13.35%; The revenue from other businesses was 630 million yuan, a year-on-year increase of 5.41%; Under the background of high base in 2020, the sensing control and household electronic detection sectors achieved revenue of 890 million yuan and 1.45 billion yuan respectively, with a year-on-year decrease of 6.03% and 18.11%.
Brand influence continues to improve and expand new fields: thanks to the continuous improvement of the company’s product power and the excellent performance of anti epidemic products under the epidemic situation, the company’s brand influence continues to improve, “Jiefurou” is synonymous with hand consumer sensing control; “Amiloride” has become one of the labeling terms of skin disinfectants in China’s medical industry; “Primedic pumikang” also has a high reputation in the global medical emergency industry. In 2021, the company’s R & D expenses were 430 million yuan, a year-on-year increase of 6.02%; The R & D expense rate was 6.17%, an increase of 0.2pp compared with 2020. Both internal R & D and external M & A of the company have successfully extended the industry to the fields of traditional Chinese medicine instruments, surgical instruments, medical emergency equipment, hospital disinfection sensing and control products and services, eye health and ophthalmic instruments, continuous blood glucose detection and so on.
AED products have obtained the domestic registration certificate, and CGM products are worth looking forward to: in 2021, based on the continuous development of traditional business, the company will strategically focus on the three fields of blood glucose, POCT and sensing control, and actively incubate high potential businesses such as first aid, ophthalmology and intelligent rehabilitation. In April 2022, the company obtained the domestic registration certificate of AED products and accelerated its localization process. In the future, it is expected to play a positive role in strengthening the cost side advantage of relevant businesses and improving the overall gross profit margin of the first aid sector. In 2021, the company completed the equity acquisition of Zhejiang kailite, cut into the field of CGM, and launched “annaitang” continuous blood glucose monitoring products, which is expected to achieve rapid volume by virtue of the company’s channel resources and brand influence in the field of blood glucose.
Profit forecast and investment rating: considering the impact of the epidemic, we lowered the forecast of net profit attributable to the parent company in 2022 / 2023 from 1.606/1.968 billion yuan to 1.550/1.851 billion yuan, and predicted that the net profit attributable to the parent company in 2024 would be 2.211 billion yuan. The current market value corresponding to PE was 16 / 14 / 11 times respectively, maintaining the “buy” rating.
Risk warning: acquisition integration is less than expected risk, overseas order decline risk, new product promotion is less than expected risk, exchange gain and loss risk.