\u3000\u30003 Anhui Fengyuan Pharmaceutical Co.Ltd(000153) 00015)
Performance review
On April 25, the company released the annual report of 2021 and the report of the first quarter of 2022. In 2021, the revenue will be 15.001 billion yuan (+ 25.93%), and the net profit attributable to the parent company will be 2.323 billion yuan (+ 34.78%); Q4 achieved a revenue of 3.404 billion yuan (+ 1.72%) and a net profit attributable to the parent company of 320 million yuan (+ 79.92%) in a single quarter. The performance was in line with expectations.
In the first quarter of 2022, the revenue was 4.169 billion yuan (+ 18.72%), the net profit attributable to the parent company was 611 million yuan (+ 26.15%), and the net profit not attributable to the parent company was 623 million yuan (+ 22.49%), and the performance was in line with expectations.
Business analysis
Continue to expand around the hierarchical chain and coordinate the operation of diagnosis and treatment institutions at all levels. By the end of 2021, the company had 174 domestic hospitals and 118 outpatient departments, realizing 101961 million outpatient visits (+ 35%) and 817300 operations (+ 18%). The company continued to accelerate the layout of local and county hospitals and optometry clinics through acquisition and new establishment, and further improved the breadth, depth and density of the medical network layout.
High quality development has been steadily promoted, and profitability has been improved. All segments of the company’s main business achieved significant growth in revenue, of which the optometry service business and refractive surgery business grew rapidly, with revenue of 3.378 billion yuan (+ 38%) and 5.520 billion yuan (+ 27%) respectively. The company has a good control on the expense side, with a sales expense rate of 9.65% (+ 0.7pct) and an administrative expense rate of 13.05% (+ 1.1pct), a gross profit margin of 51.92% (+ 0.89pct) and a net profit margin of 16.47% (+ 0.71pct), and a steady increase in profitability. From the perspective of molecular companies, Changsha Aier, Wuhan Aier and Chengdu Aier have achieved revenue of 460 million yuan (+ 3%), 540 million yuan (+ 11%) and 420 million yuan (+ 9%) respectively. The core old courtyard has maintained stable operation for a long time.
Clinical, teaching, scientific research and service capabilities have been continuously improved, and patient satisfaction and brand influence have been continuously improved. In 2021, the company signed strategic cooperation agreements with Tianjin University, Sichuan University, Tianjin Vocational University and other universities, which is expected to continue to incubate talents for the company and improve scientific research strength and industry influence.
Profit adjustment and investment suggestions
As the leader of China’s ophthalmic medical service industry, the company has continuously improved its management level, consolidated its market position and continuously improved its hierarchical chain system. It is expected that the company will realize a net profit attributable to its parent of RMB 3.166, 4.210 and 5.555 billion in 22-24 years, with a year-on-year increase of 36%, 33% and 32%. The corresponding PE is 57, 43 and 33 times, maintaining the “buy” rating.
Risk tips
Risk of epidemic rebound; Overseas expansion is less than expected risk; Market competition intensifies risks; The speed of M & A is lower than the expected risk; Medical safety accidents, dispute risks, etc.
