\u3000\u3 China Vanke Co.Ltd(000002) 223 Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) )
Event: on the evening of April 22, 2022, the company released its annual report for 2021: the company achieved an annual operating revenue of 6.894 billion yuan, a year-on-year increase of 2.51%; The net profit attributable to the parent company was 1.482 billion yuan, a year-on-year decrease of 15.73%; Deduct non net profit of RMB 1.319 billion, a year-on-year decrease of 18.90%. The basic earnings per share is 1.49 yuan, and a cash dividend of 3.00 yuan (including tax) is proposed to be distributed to all shareholders for every 10 shares.
Among them, the operating revenue in the fourth quarter of 2021 was 1.584 billion yuan, a year-on-year decrease of 15.63%; The net profit attributable to the parent company was 131 million yuan, a year-on-year decrease of 47.43%; Deduct non net profit of 88 million yuan, a year-on-year decrease of 62.34%.
Focus on expanding the three core growth tracks, and grow steadily with thick snow on Changpo
In 2021, the management of the company reorganized the business sector, and will shift from mature assets to growth businesses on the basis of cornerstone businesses such as blood pressure monitoring, body temperature monitoring, traditional Chinese medicine equipment and surgical instruments, focusing on the continuous expansion of three core growth tracks of respiration and oxygen production, blood glucose and POCT and disinfection sensing control, and actively incubate high potential businesses such as first aid, ophthalmology and intelligent rehabilitation.
(1) the business of respiratory treatment solutions achieved an operating revenue of 2.623 billion yuan, a year-on-year increase of 16.04%. Among them, oxygen generator products, as the core business, increased by nearly 80% year-on-year; The year-on-year growth rate of atomized products exceeded 113%; Due to the influence of the base number, ventilator products decreased significantly year-on-year in 2020, but the CAGR exceeded 50% year-on-year in 2019, and the brand influence in relevant fields continued to deepen. (2) The business of diabetes care solutions achieved an operating revenue of 457million yuan, a year-on-year increase of 70.20%. With the continuous improvement of the reputation of users inside and outside the hospital, the market share and user scale reached a new high; The gross profit margin continued to improve, with a year-on-year increase of 2.16pct to 65.48%. (3) Affected by the demand difference between the two phases of the epidemic, the infection control solutions sector realized an operating revenue of 893 million yuan, a year-on-year decrease of 6.03%. Since the outbreak of the epidemic, the strength of relevant products and the image of disinfection sensing and control series products such as “Jiefurou” have become more and more popular in the markets inside and outside the hospital.
(4) household electronic testing and in vitro diagnosis business realized an operating revenue of 1.448 billion yuan, a year-on-year decrease of 18.11%. The year-on-year growth rate of electronic sphygmomanometer products, the main products, exceeded 35%; The demand for infrared thermometer products is reduced due to the epidemic situation, which is much lower than that in 2020, and there is still a compound growth of more than 110% compared with that in 19 years. There is a wide market space for good and accurate “non-contact” temperature monitoring. (5) The business of rehabilitation and clinical devices achieved an operating revenue of 1.228 billion yuan, a year-on-year increase of 13.35%. Among them, the sales revenue of wheelchair products increased by more than 38% year-on-year, and the sales revenue of acupuncture products increased by nearly 15% year-on-year. The sales of Ophthalmology and various rehabilitation care products increased rapidly compared with the same period last year. (6) The first aid business realized an operating revenue of 183 million yuan, a year-on-year increase of 2.69%. The company’s AED products business in China has a good momentum, and the overall scale continues to grow.
Under the epidemic situation, the product structure is different, and the gross profit margin and net profit margin decline
For the whole year of 2021, ① the company’s comprehensive gross profit margin decreased by 4.39 PCT to 48.29% year-on-year, mainly due to the different product structure under the epidemic situation compared with the same period last year; The sales expense ratio increased by 2.50pct to 13.71%, the management expense ratio increased by 0.29pct to 5.64%, the R & D expense ratio increased by 0.20pct to 6.17%, and the financial expense ratio decreased by 2.03pct to – 0.13% year-on-year, mainly due to the impact of exchange rate fluctuations; Under the comprehensive impact, the company’s overall net profit margin decreased by 4.59% to 21.53% year-on-year. ② The net cash flow from operating activities was 1.201 billion yuan, a year-on-year decrease of 57.57%, mainly due to the company’s requirements for delivery and ordering during the epidemic in the same period last year. At present, the sales have returned to the normal credit and accounting period of the epidemic; At the same time, in 2021, due to the rise in the price of bulk materials and the impact of the international environment, the prices of main raw materials increased. At the same time, in order to ensure production, the company made strategic reserves for important raw materials.
Among them, in the fourth quarter of 2021, ① the company’s revenue volume decreased by 15.63% year-on-year. On the one hand, due to the difference in revenue composition, there were still some orders related to the epidemic in the fourth quarter of 2020, and the impact of the epidemic in the fourth quarter of 2021 was small; On the other hand, in the fourth quarter of 2021, the company took the initiative to carefully control the overall operation based on the comprehensive supply chain and market environment. Overall, compared with the fourth quarter of 2019, the revenue side still achieved a two-year compound growth rate of nearly 21% in the fourth quarter of 2021. ② The comprehensive gross profit margin decreased by 0.88pct to 43.16% year-on-year, mainly due to the differences in product structure and the impact of the promotion activities of the 11th and 12th National Day of the Communist Party of China; The sales expense rate, management expense rate, R & D expense rate, financial expense rate and overall net interest rate were 20.78%, 8.31%, 7.19%, 0.44% and 8.32% respectively, with changes of + 8.92pct, + 2.49pct, -0.45pct, -4.43pct and -4.99pct respectively. The net cash flow from operating activities was 114 million yuan, a year-on-year decrease of 59.05%.
Profit forecast and investment rating: Based on the analysis of the company’s core business segment, we expect the operating revenue from 2022 to 2024 to be 7.431 billion / 8.799 billion / 10.379 billion respectively, with a year-on-year growth rate of 8% / 18% / 18% respectively; The net profit attributable to the parent company was 1.559 billion / 1.834 billion / 2.163 billion respectively, an increase of 5% / 18% / 18% respectively; EPS is 1.55/1.83/2.16 respectively, corresponding to 15 times PE in 2022 according to the closing price on April 25, 2022. Maintain the “buy” rating.
Risk tips: the risk of continued impact of the epidemic situation of novel coronavirus pneumonia; The goodwill impairment risk caused by the operation of the target of M & a not reaching the expectation; The risk of increasingly fierce market competition; Risk of policy change.
