\u3000\u30 Jinzai Food Group Co.Ltd(003000) 03 Lepu Medical Technology (Beijing) Co.Ltd(300003) )
Events: 1) the company released its annual report for 2021, with annual revenue of 10.66 billion yuan (+ 32.6%), net profit attributable to parent company of 1.72 billion yuan (- 4.6%), net profit not attributable to parent company of 1.85 billion yuan (+ 31.3%) and net operating cash flow of 3.06 billion yuan (+ 46.5%). 2) The company released the first quarterly report of 2022. The revenue of 22q1 was 2.55 billion yuan (- 7.3%), the net profit attributable to the parent was 550 million yuan (- 24.9%), the net profit not attributable to the parent was 550 million yuan (- 19.8%), and the net operating cash flow was 450 million yuan (- 65.4%).
The income in 2021 is in line with the expectation. In 22q1, excluding the influence of covid-19, the endogenous income growth rate is 15.2%. The net income of Q2 in the first quarter was RMB 32.6 billion / + 1.37% / q2.3 billion / + 1.37% / q2.3 billion respectively, and the net income of Q2 in the second quarter was RMB 1.6 billion / / – 1.37% / q2.3 billion / – 1.7% / q2.7 billion respectively. In terms of profitability, the gross profit margin in 2021 is 61% (- 6PP), and the four rate is 36.9% (- 6PP). Considering the investment income (mainly due to Shanghai Junshi Biosciences Co.Ltd(688180) stock price fluctuation) and the decrease of profit and loss from changes in fair value, the net profit attributable to the parent company in 2021 is 16.1% (- 6.3pp). The main reason for the decline of revenue and profit in 2022q1 is that covid-19 detection reagent contributed 610 million yuan in 2021q1 and 130 million yuan in 22q1. Excluding covid-19, the growth rate of original basic business revenue was 15.2%.
The centralized collection of coronary stents affects the landing, and the innovative devices drive the continuous growth of the device sector. In terms of business, the revenue of the device sector in 2021 was 6.17 billion yuan (+ 81.4%), excluding the contribution of covid-19 testing reagent revenue, the revenue of conventional devices increased by 20.7%, of which the revenue of traditional stent business decreased significantly due to centralized purchase and landing, but the intervention non implantation innovative product portfolio increased by 827.4%, realizing significant volume. The pharmaceutical sector is the company’s long-term and stable cash flow business, with a revenue of 3.25 billion yuan (- 4.5%) in 2021, including 2.82 billion yuan (- 1.9%) from preparations (generic drugs) and 440 million yuan (- 18.5%) from APIs. The revenue of medical services and health management was 1.23 billion yuan (+ 0.4%), excluding the impact of covid-19 epidemic related products export, the revenue of routine business increased by 11.2% compared with 2020. In terms of sub regions, the overseas revenue in 2021 was 3.76 billion yuan (+ 143.9%), accounting for 35.3% of the revenue. From 2022q1, the conventional revenue of the device sector increased by 37.7% year-on-year, mainly due to the growth rate of 118.1% in the non implant innovative product portfolio, which continued to grow at a high rate; The revenue of 22q1 pharmaceutical sector decreased by 9.4%, and the revenue of medical services and health management sector increased by 43.2%.
R & D efforts have been continuously strengthened, and there are abundant reserves of innovative product pipelines. The company’s R & D investment accelerated by 1.1 billion yuan, accounting for 1.1% of the company’s revenue in 2024. The company’s R & D layout mainly includes three directions: 1) in the field of Pan cardiovascular: the company fully covers the fields of structural heart disease, rhythmic heart disease, coronary artery implantation and intervention, peripheral implantation and intervention, etc; 2) In non cardiovascular fields: mainly in surgical anesthesia, IVD and other fields; 3) Field of artificial intelligence: layout of ECG monitoring system and services for medical institutions, as well as medical and health equipment and services for consumers. With the continuous acquisition of registration certificates in the future, the layout of the company’s product line will be further enriched, and the strategic direction of “innovation, service, nationalization, integration, efficiency and stable development” will be superimposed. The company is expected to move forward to the leader of the whole cardiovascular industry chain.
Profit forecast and investment suggestion: without considering the contribution of covid-19 antigen detection reagent, it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 1.89 billion yuan, 2.26 billion yuan and 2.72 billion yuan, EPS will be 1.05, 1.25 and 1.51 yuan respectively, and the corresponding PE will be 16, 14 and 11 times respectively. The proportion of innovative devices of the company continued to increase, the effect of strategic transformation gradually appeared, and the “buy” rating was maintained.
Risk tips: exchange rate fluctuation risk, policy fee control risk, lower than expected volume of innovative products and repeated epidemic.
