\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 96 Imeik Technology Development Co.Ltd(300896) )
Key investment points
Performance summary: the company released the first quarter report of 2022. In Q1 of 2022, the revenue was 430 million yuan, a year-on-year increase of + 66.1%, the net profit attributable to the parent was 280 million yuan, a year-on-year increase of + 64%, and about 270 million yuan after deduction, a year-on-year increase of + 63.5%. Under the disturbance of the epidemic, the performance increased against the trend and achieved high growth.
The sinking of products promotes the growth of performance against the trend, and the scale effect improves the profitability. In the first quarter of 2022, the epidemic broke out in many cities across the country. The first and second tier cities with medical and American consumption in the forefront, such as Shenzhen, Shanghai, Guangzhou and Suzhou, were affected by the epidemic, with different periods of closure and control. Under this situation, the company’s revenue and profit sides achieved a year-on-year growth of more than 60%. It is expected that due to certain achievements in the promotion of the company’s market channels in recent years, the company has differentiated Products that can meet different needs of consumers are gradually sinking to second and third tier cities and inland areas. In terms of gross profit margin, the company’s 22q1 gross profit margin was 94.5%, up 2PP year-on-year and 0.4pp month on month. It is expected to benefit from the large volume of high gross profit products and the scale effect brought by the rapid expansion of the company’s scale. With the sinking of the company’s channels, product expansion and brand strength, the advantages of scale effect will be further highlighted.
Sales and management expenses increased, and cash flow was sufficient and stable. The sales expense of 2022q1 company was 53.9 million yuan, a year-on-year increase of + 94.6%; The management fee was 21.9 million yuan, a year-on-year increase of + 85.6%, mainly due to the increase of sales personnel and channel expansion. In terms of cash flow, the monetary capital (3.29 billion yuan) and trading financial assets (570 million yuan) at the end of the period totaled 3.86 billion yuan, a year-on-year increase of – 3.6%, with small fluctuation, sufficient and stable.
Raise funds, increase investment in biotechnology, and pay attention to R & D and long-term development. The company modified the purpose of the listed raised funds, and increased the investment in the “biotechnology and device innovation and R & D center project” on the basis of the investment in the “medical materials and medical devices innovation and transformation R & D center and new product R & D construction project”. The new project will focus on the research and development direction related to biotechnology, realize the rapid construction of biotechnology platform and promote the rapid transformation of R & D achievements. In addition, the investment in biotechnology is conducive to enhancing the company’s R & D strength and technical reserves in biotechnology, and improving the construction capacity of drug R & D pipeline. At the same time, the R & D expenditure of 2022q1 company was 29.1 million yuan, a year-on-year increase of + 24.4%. The investment in product R & D was further improved, which shows that the company pays attention to R & D investment and product pipeline layout, accumulates product innovation and improves its long-term development competitiveness.
Profit forecast and investment suggestions: the revenue growth of the company’s existing business in the next three years will be 68.57%, 52.23% and 44.38% respectively. It is expected that the company’s popular product “Hi body” will maintain high-speed revenue growth. The derivative products “panda needle” and “white angel” of children’s face needle have the potential to become large single products and will be rapidly promoted to bring revenue increment to the company. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 1.56 billion yuan, 2.37 billion yuan and 3.48 billion yuan respectively, and the EPS will be 7.22 yuan, 10.97 yuan and 16.08 yuan respectively, with corresponding valuations of 67 times, 44 times and 30 times respectively. Considering that the company is a leader in the medical and beauty industry and its performance is growing rapidly, the “buy” rating is maintained.
Risk warning: the risk of product price decline, the risk of less than expected research and development progress, and the risk of major medical accidents.
