\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 96 Imeik Technology Development Co.Ltd(300896) )
Event: the company announced that in the first quarter of 2022, it realized an operating revenue of 431 million yuan, an increase of 66.07% over the same period of last year; The net profit attributable to the shareholders of the listed company was 2.80 yuan, an increase of 64.03% over the same period last year.
Comments:
In the first quarter of 2022, the company’s revenue performance maintained high growth. (1) In the first quarter of 2022, the epidemic spread in some parts of China (especially in important medical and American consumption cities such as Shanghai and Guangzhou), and the consumption demand of the overall medical and American market was restrained. Under the background of the slowdown of global social and economic growth and the impact of China’s scattered epidemic on offline operations, Imeik Technology Development Co.Ltd(300896) still achieved a high revenue growth of 66% and the revenue scale hit a new quarterly high. We judge that it is mainly due to the expansion and sinking of the company’s channels, the contrarian growth of performance and the resilience of the company by virtue of product quality and brand advantages. The consumption demand for medical beauty is spontaneous. In the future, with the improvement of the epidemic situation, the deferred consumption demand for medical beauty will be gradually released, and the performance of the company is expected to resume growth. (2) From the perspective of popular products, the company shows that its star product hi body is still in a period of rapid growth. At present, the market penetration is low and there is still a large growth space in the future; As a newly listed product of the company, the new generation of Tongyan needle yubai angel has been widely recognized by medical and beauty institutions, doctors and beauty seekers after six months of promotion, and its sales have increased steadily. It is expected that the follow-up company will strengthen the promotion.
In the first quarter of 2022, the gross profit margin of the company’s sales hit a new quarterly high. In Q1 2022, the gross profit margin of the company’s sales was 94.45%, with a year-on-year increase of 1.95 percentage points and a month on month increase of 0.38 percentage points; Over the same period, the net profit margin on sales was 65.03%, up 1.09 percentage points year-on-year and 6.44 percentage points month on month. In terms of period expenses, in the first quarter of 2022, the company’s sales expense rate increased by 1.84 percentage points year-on-year to 12.52%, which is expected to be due to the increase of sales promotion and labor costs; The company’s management expense ratio was optimized by 1.71 percentage points year-on-year, which is expected to be mainly due to the scale effect brought by the growth of the company’s income scale. Overall, the company’s profitability remained high.
The supervision of China’s medical beauty is further tightened, and Imeik Technology Development Co.Ltd(300896) as the head enterprise of China’s medical beauty, may benefit. Recently, the State Food and Drug Administration issued an announcement on adjusting some contents of the classification catalogue of medical devices. Orthopedic and general surgical implants such as sodium hyaluronate solution for injection and implant line have been included in the supervision of class III devices. The tightening of national medical and beauty supervision will accelerate the reshuffle of the industry, and the non-conforming and illegal products on the market will gradually withdraw from the market, which is conducive to the improvement of market concentration Imeik Technology Development Co.Ltd(300896) as a head brand company, its injection and implant products are class III medical devices, especially the water light products such as hi body neck tattoo needle and sun live bubble needle will benefit from the industry rectification.
Investment suggestion: the company focuses on medical and beauty products, is the leader of hyaluronic acid injection in China, and enjoys the dividend of medical and beauty industry. The company’s medical beauty product pipeline is gradually enriched and improved, and the new Tongyan needle has significant innovation advantages, which is expected to become a new generation of star products; In the future, it will enter the weight management market with high growth. We expect the company’s earnings per share in 2022 / 2023 to be 6.75 yuan / 9.77 yuan respectively, and the current corresponding PE is 75 times / 52 times respectively, maintaining the “recommended” rating of the company.
Risk warning: epidemic risk; Market competition intensifies risks; New product development and registration risks; The market acceptance of new products is lower than expected; Risk of renewal of business qualification, etc.
