\u3000\u3 Shengda Resources Co.Ltd(000603) 987 Shanghai Kindly Enterprises Development Group Co.Ltd(603987) )
Event:
On April 25, 2022, the company disclosed the first quarterly report of 2021. In 2022q1, the company achieved an operating revenue of 867 million yuan, a year-on-year increase of 28.81%, a net profit attributable to shareholders of listed companies of 71 million yuan, a year-on-year increase of 55.67%, and a net profit attributable to shareholders of listed companies deducting non recurring profits and losses of 62 million yuan, a year-on-year increase of 39.99%. The basic earnings per share is 0.66 yuan / share.
Event comments
The revenue end of 22q1 increased by 28.81% year-on-year, and was basically flat compared with 21q4
In 2022q1, the company’s operating revenue reached 867 million yuan, with a year-on-year increase of 28.81%. The revenue to amount continued the high base since 2021q4, with a slight decrease in the ring ratio and an increase of about – 1.81%. Since the first quarter of 2021, the foreign environment has tended to improve, and various businesses of the company have warmed up to varying degrees. There is a high demand for the company’s injection products in 2021q1, and the revenue side of 2022q1 still maintains a high growth. We expect that on the one hand, the demand for the company’s syringe products in the overseas market remains high, On the other hand, the orders of products other than ordinary syringes (such as safety syringes / needles, safety blood collection needles, feeding series, pre filling / pump syringes, beauty needles, etc.) of the company continue to grow with sufficient momentum. It is expected that the revenue and profit side of the whole year will achieve high growth.
Benefiting from the reduction of sales expense rate, the company’s net sales interest rate increased by about 2 percentage points year-on-year
The net profit margin of 2022q1 reached 11.94%, an increase of 1.96 percentage points compared with 2021q1, mainly due to the decrease of the company’s expense side. The sales expense rate of 2022q1 is about 8.97%, which is about 2.87 percentage points lower than that of 2021q1. On the one hand, we believe that the proportion of the company’s overseas market revenue is increased, while the sales expense required by the overseas market business is low. On the other hand, due to the influence of covid-19 epidemic in China in 2022q1, the offline activities such as business trips are reduced, and the overall sales expense rate has decreased.
Investment advice
We expect that the company’s revenue from 2022 to 2024 is expected to reach 3.790 billion yuan, 4.509 billion yuan and 5.371 billion yuan respectively, with a year-on-year increase of about 22.4%, 19.0% and 19.1% respectively. Considering that the proportion of the company’s high gross margin products is gradually increasing, and the overall gross profit margin and net profit margin of the company will also increase year by year, we expect that the company’s net profit attributable to the parent company from 2022 to 2024 will reach 388 million yuan, 484 million yuan and 600 million yuan respectively, with a year-on-year increase of about 33.1% respectively 24.9% and 24.0%. The EPS from 2022 to 2024 are 0.83 yuan, 1.04 yuan and 1.29 yuan respectively, and the corresponding PE valuations are 20x, 16x and 13X respectively. In view of the continuous upgrading of the company’s products, the smooth expansion of overseas markets, the basic market in China is stable, and the “buy” rating is maintained.
Risk tips
Industry policy risk;
