\u3000\u30003 Anhui Fengyuan Pharmaceutical Co.Ltd(000153) 00015)
Event: on April 25, 2022, the company released the annual report of 2021 and the report of the first quarter of 2022. In 2021, the company achieved a total operating revenue of 15.001 billion yuan, a year-on-year increase of 25.93%; The net profit attributable to the parent company was 2.323 billion yuan, a year-on-year increase of 34.78%; The net profit deducted from non parent company was 2.783 billion yuan, with a year-on-year increase of 30.59%. In 2021q1, the company achieved an operating revenue of 4.169 billion yuan, a year-on-year increase of 18.72%; The net profit attributable to the parent company was 611 million yuan, a year-on-year increase of 26.15%; The net profit deducted from non parent company was 623 million yuan, with a year-on-year increase of 22.49%.
The performance of the annual report is in line with market expectations, and 2022q1 is affected by covid-19 epidemic. 2021q1-q4 company achieved operating revenue of 3.511 billion yuan, 3.837 billion yuan, 4.248 billion yuan and 3.404 billion yuan respectively. In terms of two-year dimension, the year-on-year growth rates in 2019 were 56.43%, 53.20%, 42.42% and 50.76% respectively, basically in line with market expectations. Due to the stable epidemic control in China in 2021, the company’s business indicators ushered in a restorative rebound: the number of outpatients completed was 101961 million, a year-on-year increase of 35.07%; The number of operations completed was 817300, with a year-on-year increase of 17.64%. The performance of 2022q1 company has been impacted by the epidemic again. The quarterly report shows that the performance of the company has achieved stable growth from January to February. Since March, the epidemic has rebounded in many places across the country, especially in Hong Kong, Jilin, Shenzhen, Shanghai and other regions. Some hospitals of the company have phased suspension or flow restriction, which finally affected the performance of 2022q1 to a certain extent.
Refractive and visual acuity maintained rapid growth, and the European market rebounded. (1) From the perspective of business: refractive projects and visual service projects are the core drivers of the company’s revenue and profit growth. In 2021, the company’s refractive project achieved a revenue of 5.520 billion yuan, a year-on-year increase of 26.92%, and the gross profit margin reached 58.95%, a year-on-year increase of 0.83pct; The revenue of visual service projects was 3.378 billion yuan, with a year-on-year increase of 37.68%, and the gross profit margin reached 58.04%, with a year-on-year increase of 1.11 PCT. Refractive and optometry businesses contributed 59.32% of the company’s overall revenue and 66.95% of the company’s overall gross profit. Driven by two high gross profit businesses, the company’s overall gross profit margin reached 51.92%, a year-on-year increase of 0.89pct, and the overall net profit margin reached 16.47%, a year-on-year increase of 0.71pct. (2) In terms of subregions, the proportion of central China is 31.54%, that of East China is 13.87%, that of Southwest China is 13.04%, that of South China is 12.40%, that of Northeast China is 7.37%, that of North China is 7.09%, that of Northwest China is 3.27%, and that of Hong Kong, Macao, Taiwan and overseas regions is 11.41%. Among them, there is a restorative rebound in the European market, with a year-on-year growth rate of 39.24% in 2021.
Improve the medical quality system and improve the quality of medical services. Adhere to the guidance of the company’s “quality control system” and strengthen the construction of medical quality control system. In 2021, the incidence of endophthalmitis after cataract surgery in the company was 0.0121%, which was lower than the average incidence of 0.03% in the third class a hospital; The incidence of endophthalmitis after vitrectomy was 0.0166%, lower than the industry average incidence of 0.05%. In 2021, all hospitals under the company started comprehensive self inspection and self correction, selected hospitals by sampling to carry out on-site medical and nursing inspection, further improved diagnosis and treatment norms and systems, standardized diagnosis and treatment behavior, and ensured the implementation of medical quality and safety. The company has always adhered to the “patient-centered” service organization structure, increased internal and external supervision and inspection of services in 2021, improved the group’s three-level service control structure, and carried out standardized, normalized and three-dimensional flight inspection.
Investment suggestion: it is estimated that the operating revenue of the company from 2022 to 2024 will be 18.443 billion yuan, 23.036 billion yuan and 28.521 billion yuan respectively, the net profit attributable to the parent company will be 2.95 billion yuan, 3.936 billion yuan and 5.115 billion yuan respectively, the corresponding EPS will be 0.55 yuan, 0.73 yuan and 0.95 yuan respectively, and the corresponding PE will be 61.5 times, 46.1 times and 35.5 times respectively, maintaining the investment rating of overweight-a.
Risk warning: uncertainty risk of medical malpractice; Covid-19 epidemic uncertainty risk; M & A is less than expected risk.
