\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 33 Sonoscape Medical Corp(300633) )
Key investment points
Event: in 2021, the company realized an operating revenue of 1.445 billion yuan, a year-on-year increase of 24.20%, a net profit attributable to the parent company of 247 million yuan, a year-on-year increase of 634.43%, and a deduction of 168 million yuan of non net profit, a year-on-year increase of 285.54%; In 2022q1, the operating revenue was 371 million yuan, with a year-on-year increase of 31.53%, the net profit attributable to the parent company was 51.08 million yuan, with a year-on-year increase of 41.36%, and the non net profit deducted was 48.72 million yuan, with a year-on-year increase of 75.59%.
Endoscopy and ultrasound returned to normal, with a rapid growth trend. In the single quarter of 2021q4, the company achieved an operating revenue of 504 million yuan, a year-on-year increase of 11.90%, and the net profit attributable to the parent company was 108 million yuan, a year-on-year increase of 247.53%. The non net profit deducted was 49.63 million yuan, a year-on-year increase of 157.30%. The revenue side still achieved good growth under the disturbance of the epidemic, and the profit side performed well under the positive impact of Wilson’s compensation of 40 million yuan and the negative impact of asset impairment such as goodwill of 110 million yuan. 22q1 company’s ultrasound and endoscopy business fully recovered rapid growth, and the revenue growth rate slightly exceeded the market expectation.
The proportion of high-end products increased and the profitability continued to improve. In 2021, the company’s expense rate was 50.50%, a year-on-year decrease of 7.00pp, with significant scale effect. The proportion of high-end color Doppler ultrasound and endoscopy continued to increase, resulting in a comprehensive gross profit margin of 67.38%, a year-on-year increase of 0.93pp and a net profit margin of 17.12%, gradually recovering to the pre epidemic level.
In the past 21 years, color Doppler ultrasound achieved 20 +% rapid growth, and the proportion of high-end color Doppler ultrasound further increased. In 2021, the company’s color Doppler ultrasound business realized a revenue of 946 million yuan, with a year-on-year increase of 20.61%. According to the company’s financial report and past performance, it is expected that the revenue of high-end 60 series accounts for more than 20%, becoming one of the few manufacturers in China to launch high-end color Doppler ultrasound. It has made continuous breakthroughs in maternity and systemic application, and the installed capacity of class III hospitals has been increasing.
The endoscopy business continues the high growth trend, the product line continues to be enriched, and the competitiveness of tertiary hospitals is improved. In 2021, the company’s endoscopy business realized a revenue of 428 million yuan, with a year-on-year increase of 39.0%, of which the growth rate of endoscopy equipment was 42%, continuing the high growth trend. According to the company’s financial report and past performance, it is expected that the revenue of high-end 550 series will account for 60%. In the field of high-end endoscopes, it has achieved a breakthrough in enlarged endoscopes, ultra-fine endoscopes and stiffness adjustable endoscopes, filling the gap in China.
Driven by R & D, the company’s multi product strategy is beginning to take shape. In 2021, the company invested 263 million yuan in R & D, accounting for 18.21% of the revenue. The company’s product line gradually realized the expansion from internal medicine to “internal medicine + surgery”, from diagnosis to “diagnosis + treatment”, and from equipment to “equipment + consumables”, and the multi product strategy began to take shape.
Profit forecast and Valuation: according to the annual report, the first quarter report and the equity incentive plan, the company’s revenue is expected to be 1.784 billion yuan, 2.221 billion yuan and 2.804 billion yuan from 2022 to 2024, with a year-on-year increase of 23%, 25% and 26%, and the net profit attributable to the parent company is 285 million yuan, 383 million yuan and 488 million yuan, with a year-on-year increase of 15%, 34% and 27% (298 million yuan and 376 million yuan in the 22-23 years before adjustment), corresponding to eps0 66、0.89、1.14。 Considering that the company’s color Doppler ultrasound and endoscopy are expected to continue to be imported and replaced, the new products such as bronchoscope, laparoscope and ultrasonic endoscopy have strong growth and maintain the “buy” rating.
Risk tips: overseas sales risk, product quality control risk, policy change risk.
