\u3000\u3 Shengda Resources Co.Ltd(000603) 987 Shanghai Kindly Enterprises Development Group Co.Ltd(603987) )
The company’s business revenue increased by 28.8% in the first quarter of 2027, with a year-on-year growth of 28.8%; The net profit attributable to the parent company was 70.886 million yuan, a year-on-year increase of 55.67%; The net profit deducted from non parent company was 62.455 million yuan, with a year-on-year increase of 39.99%.
Increasing the volume of new products and centralized purchase boosted the performance at home and abroad: in the first quarter of 2022, while ensuring the stable supply of business orders in the international market, the company promoted the high-speed volume of new products. The continuous implementation of new products in the domestic and foreign markets helped the rapid growth of performance in 2022q1. We expect the rapid volume of safety syringes to be the main reason; In China, relying on the increase in the market share of centralized procurement products, the effective promotion of other medical products and the increment brought by consumer products, we expect that the rapid rise in the demand for virus sampling tubes driven by the epidemic and the rapid growth of medical and American needles will lead to the rapid growth of Q1 performance in 2022 in the first quarter.
Winning the bid for centralized purchase in many places and accelerating the penetration into the blank Market: in 2021, China continued to promote the centralized purchase of medical devices. The company’s indwelling needle and functional infusion set were included in the catalogue of centralized purchase of medical consumables and won the bid in centralized purchase in Hebei, Shandong and other places, which not only accelerated the penetration of the company’s products in the blank market, expanded the local market share of the company’s products, but also promoted the entry of other products of the company into the local market to a certain extent. In addition, under the background of the gradual improvement of China’s awareness of diabetes treatment in the future, the penetration rate of insulin needles is expected to rise rapidly. The company’s insulin needles continue to iterate and optimize. The new generation of safe insulin needles have higher performance and high cost performance. It is expected to achieve domestic replacement and accelerate the market share.
The continuous enrichment of product lines has laid the foundation for the company’s long-term development: the company has always paid attention to R & D and innovation, the products have been continuously upgraded, and the new products developed have been listed one after another. In 2021, the one-time beauty bag was registered in China and launched to market; 510k registration and submission of disposable safety injection needle, disposable safety syringe and other products have been completed. In 2021, the company completed the first registration of 14 products and continued registration of 26 products. In the future, the continuous listing of medical and beauty devices, safety injection and intervention products will further broaden the company’s product line and increase profits for the company.
Profit forecast and investment rating: we maintain the forecast of net profit attributable to parent company in 2022 / 2023 / 2024 to be RMB 396 / 513 / 649 million, and the current market value corresponding to PE is 15 / 12 / 9 times respectively, maintaining the “buy” rating.
Risk tip: the promotion of new products is not as expected; Exchange losses; The implementation of centralized purchase policy exceeded expectations.
