\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 96 Imeik Technology Development Co.Ltd(300896) )
Event: in the first quarter of 2022, the company achieved an operating revenue of 431 million yuan, a year-on-year increase of 66.07%; The net profit attributable to the parent company was 280 million yuan, a year-on-year increase of 64.03%; The net profit deducted from non parent company was 266 million yuan, with a year-on-year increase of 63.52%. The performance is in line with expectations.
The impact of Q1 epidemic is limited, and the company’s performance has grown steadily and rapidly: since the first quarter of 2022, the epidemic has been repeated in many places across the country, especially in Shanghai in March, which has had a certain impact on the company’s performance, but the company’s performance has still achieved rapid growth, which fully reflects the resilience of medical beauty consumption and company performance. After the end of the epidemic, medical beauty is expected to achieve restorative growth in the future. In recent years, the demand for anti-aging and skin rejuvenation is particularly strong. The company’s solution injection products with hi body as the core meet the demand changes, and we believe that the sustainability of this trend will help to prolong the life cycle of hi body products and continue to contribute to performance growth. We estimate that the revenue of “Hi body” series products still accounts for more than 70%, the revenue of hi body neck tattoo needle is still an important pillar, and the revenue of hi body water light needle and panda needle has increased. Rubai Angel Tongyan needle went on sale in the second half of 2021 and was steadily promoted. We estimate that the sales volume of 2022q1 will reach about 20000, and the new products will gradually contribute to the performance.
The sales and management expense ratio has increased, and the company’s profitability remains high: with the resumption of marketing activities and the increase of labor costs in the first quarter, the company’s 2022q1 sales expense ratio is 12.52% and the management expense ratio is 5.08%, increasing by 1.84pct and 0.55pct respectively; The R & D expense rate was 6.75%, down 2.26pct. The gross profit margin and net profit margin of the company’s sales were 94.45% and 65.03%, respectively increased by 1.95pct and 1.09pct year-on-year, the profit margin remained high, and the scale effect of the company was fully reflected.
The new regulations of Shuiguang needle and other regulations are becoming stricter, which is conducive to the licensed products. The company’s ability to obtain certificates in pipeline research and R & D ensures the growth of long-term performance. At the end of March 2022, the State Food and Drug Administration issued an announcement on adjusting the classification catalogue of medical devices, which classified the Shuiguang needle as class III devices. Previously, the Shuiguang needle on the market was mainly fake and parallel goods, and the organization changed to purchase three types of mechanical licensed products, which will bring incremental space for the company’s “Hi body Shuiguang needle” and “huihuo bubble needle”, and has reflected high-speed growth in Q1. In the long run, there is a strong demand for medical and American consumption, while there are few approved products of local enterprises. We believe that the company is expected to achieve sustained and rapid performance growth with rich R & D pipelines and excellent R & D certification ability. Botulinum toxin type A, hyaluronic acid gel for new indications, liraglutide injection, second-generation facial implant line, hyaluronidase, deoxycholic acid drugs (fat dissolving needles) and other products under development cooperated by the company and huansbio of South Korea are advancing smoothly, and the company will continue to strengthen its leading position in light medicine and beauty.
Profit forecast and investment rating: considering the continuous high growth of hi body, the large amount of white angel and the impact of the epidemic, we adjusted the net profit attributable to the parent company from RMB 1.536/22.23/3.030 billion to RMB 1.382/20.64/2.961 billion from 2022 to 2024, and the PE valuation corresponding to the current market value is 76x / 51x / 36x respectively. Maintain the “buy” rating.
Risk warning: the market promotion of new products may not be as expected; R & D progress may be less than expected; Risk of repeated outbreak
