\u3000\u3 Shengda Resources Co.Ltd(000603) 987 Shanghai Kindly Enterprises Development Group Co.Ltd(603987) )
Event: the company released its annual report for 2021. The operating revenue was 3.097 billion yuan, a year-on-year increase of 17.07%, the net profit attributable to the parent was 291 million yuan, a year-on-year increase of 43.71%, and the net profit not attributable to the parent was 257 million yuan, a year-on-year increase of 39.23%; The company released the first quarterly report of 2022. The operating revenue was 867 million yuan, a year-on-year increase of 28.81%, and the net profit attributable to the parent was 71 million yuan, a year-on-year increase of 55.67%. After deduction, the net profit attributable to the parent was 62 million yuan, a year-on-year increase of 39.99%. The performance is in line with market expectations. At the same time, it is proposed to pay 2 yuan (including tax) for every 10 shares.
Comments: the performance has increased rapidly, and new products have been listed one after another. The net profit attributable to the parent company increased by 43.71% year-on-year in 2021 and 55.67% year-on-year in the first quarter of 2022, realizing rapid development. Affected by the global demand for vaccine injection, the company's revenue of syringe products increased by 49.93% in 2021; The revenue of intervention products increased by 51.4%, providing an increment for the company's performance. In addition, the company has entered the new product launch cycle. In October 2021, the company became the first enterprise in China to obtain the registration certificate of three types of medical devices and beauty needles. In addition, the company has accelerated the process of R & D approval and listing of safety products and consumer products. It is expected that products such as safety insulin needle, safety indwelling needle, water light needle, small and micro needle, egg taking needle and hair transplantation needle will be approved and certified successively in the second half of this year, so as to further improve the company's product matrix and explore new incremental markets.
The sales expense ratio continued to improve and the profitability gradually increased. The company's sales expense ratio in 2021 was 10.01%, a decrease of 1.47 PCT compared with the same period in 2020, and further decreased to 8.97% in the first quarter of 22, a decrease of 2.87 PCT compared with the same period in 2021. We believe that on the one hand, the centralized purchase of indwelling needles helps the company open some blank markets, on the other hand, it is because the proportion of overseas markets has increased, the viscosity of overseas customers is strong, and the sales expense rate is usually lower than that in the Chinese market. The decrease of expense rate increased the net interest rate. The net interest rate of the company in 2021 was 13.54%, 1.20pct higher than that in 2020, and the net interest rate in Q1 in 22 years was 11.94%, 1.96pct higher than that in the same period in 2021. As more new products with high gross margin are listed in succession this year, the profitability of the company will continue to improve.
The impact of the epidemic is limited, so we should shoulder social responsibilities. Since March, the epidemic has spread in Shanghai. As a leader in China's puncture industry, the company has become a medical material guarantee unit in Shanghai. The company's production and logistics activities in Shanghai are still carried out in an orderly manner with the help of the government, making contributions to the medical material guarantee in Shanghai and shouldering social responsibilities. At the same time, the company's factories in Wenzhou, Guangxi and Zhuhai shoulder the demand for domestic trade business and minimize the impact of the epidemic on the company. Therefore, we believe that the growth trend of the first quarter can be continued in the second quarter.
Profit forecast, valuation and rating: the company is the leader of medical puncture and infusion equipment. Considering the impact of the epidemic on the company, the net profit attributable to the parent company from 2022 to 2023 is slightly reduced to 391 million yuan (the original 394 million yuan, down 0.77%) / 487 million yuan (the original 494 million yuan, down 1.42%). The net profit attributable to the parent company in 2024 is predicted to be 606 million yuan, and the current price corresponds to 15 / 12 / 10 times of PE from 2022 to 24, maintaining the "buy" rating.
Risk warning: capacity launch delay; The volume of beauty needle is less than expected; The launch of new products is less than expected; The collection of indwelling needle was not as expected; Epidemic impact.
