\u3000\u30003 Anhui Fengyuan Pharmaceutical Co.Ltd(000153) 00015)
Event: on the evening of April 25, the company released its annual report for 2021. During the reporting period, the company achieved an operating revenue of 15.001 billion yuan, a year-on-year increase of 25.93%, a net profit attributable to the parent company of 2.323 billion yuan, a year-on-year increase of 34.78%, and a net profit deducted from non attributable to the parent company of 2.783 billion yuan, a year-on-year increase of 30.59%.
At the same time, the company announced the first quarterly report of 2022. Q1 company achieved a revenue of 4.169 billion yuan, a year-on-year increase of 18.72%, a net profit attributable to the parent of 611 million yuan, a year-on-year increase of 26.15%, and a deduction of non attributable net profit of 623 million yuan, a year-on-year increase of 22.49%.
The number of outpatients and surgeries increased steadily, and the profitability continued to improve. During the reporting period, the company achieved 101961 million outpatient visits, a year-on-year increase of 35.07%, 817300 operations, a year-on-year increase of 17.64%, and various business indicators maintained steady growth. The gross profit margin was 51.92%, with a year-on-year increase of 0.89pct, and the gross profit margin increased for five consecutive years. The sales expense rate, management expense rate and R & D expense rate changed by + 0.7pct, + 1.29pct, + 0.1pct to 9.65%, 14.53% and 1.48% respectively year-on-year. The net interest rate increased by 0.71pct to 16.47% year-on-year, and the profitability continued to improve.
In terms of business, high-end business and brand effect drive the rapid growth of refraction, cataract and optometry. During the reporting period, the revenue of refractive surgery was 5.52 billion yuan (+ 26.92%), and the gross profit margin was 58.95% (+ 083pct), mainly due to the rapid growth of surgery volume, the further increase of the proportion of high-end surgery, the simultaneous rise of volume and price, and the rapid growth of the demand for patients at the local and county levels. Cataract surgery achieved a revenue of 2.192 billion yuan (+ 11.72%), with a gross profit margin of 37.67% (-0.38pct), mainly due to the further upgrading of the demand for compound cataract to the demand for refractive cataract. The revenue of opto-electronic services was 3.378 billion yuan (+ 37.68%), and the gross profit margin was 58.04% (+ 1.11pct), mainly due to the continuous enrichment and improvement of optoelectronic products, the continuous improvement of service quality and the continuous amplification of the company’s brand effect. The income of the anterior segment project was 1.456 billion yuan (+ 21.29%), and the gross profit margin was 47.95% (+ 2.85pct). The income of the posterior segment project was 995 million yuan (21.69%), and the gross profit margin was 34.52% (- 0.88% PCT). Other projects achieved a revenue of 1.433 billion yuan (+28.14%) and a free flow of 47.89% (-2.81%), mainly due to the good growth of newly established specialized clinics such as diabetes eye disease and dry eye diagnosis and treatment.
The advantages of hierarchical chain are remarkable, and the breadth, depth and density of medical network continue to improve. During the reporting period, the company successively acquired 25 outpatient departments or clinics such as Wuhan Aier Huangpi, Hanzhong Aier, Dandong Aier, Linyi Aier, etc. As of December 31, 2021, the company has 174 hospitals and 118 outpatient departments in China. With the continuous improvement of the medical network, the advantages and scale of hierarchical chain are expected to further appear. The top ten hospitals achieved revenue of 3.255 billion yuan (+ 11.21%), accounting for 21.7% (- 2.87 PCT), and the proportion of revenue of the top ten hospitals further decreased. We believe that the above shows the significant advantages of the company’s hierarchical chain, and the holding hospitals at all levels have become an important driver of the company’s performance.
Affected by the epidemic, the growth of Q1 performance slowed down in 2022, and the profitability continued to increase. From January to February in 2022, the company’s operation was good. In March, the serious epidemic in some areas led to the suspension or flow restriction of local hospitals, which affected the growth rate in the first quarter. Q1 company achieved gross profit margin of 47% (-0.31pct) and net profit margin of 16.62% (+ 1.13pct), and its profitability continued to improve.
Profit forecast: the company is the leader of ophthalmic medical services in China, with significant advantages of hierarchical chain. It has formed a layout of “horizontal film and vertical network” in many provinces and regions across the country. We expect that the net profit attributable to the parent company in 22-23 years will be 3.13 billion yuan, 4.102 billion yuan and 5.277 billion yuan respectively, corresponding to 58 / 44 / 35 times of PE respectively, maintaining the “buy” rating.
Risk warning: the expansion progress of the hospital is less than expected; Industry competition intensifies; Malignant medical malpractice; The performance of overseas hospitals affected by the epidemic is uncertain.
