\u3000\u3 Guocheng Mining Co.Ltd(000688) 626 Xiangyumedicalco.Ltd(688626) )
Short term factors affect the growth rate of revenue and profit, are optimistic about the long-term development potential of the company, and maintain the “buy” rating
On April 27, the company released its 2021 annual report: in 2021, the company achieved a revenue of 523 million yuan (+ 5.65%), a net profit attributable to the parent company of 202 million yuan (2.87%), a deduction of 152 million yuan (- 2.37%), and a net operating cash flow of 166 million yuan (- 23.15%). EPS1. 35 yuan / share (- 0.29 yuan / share, basic earnings per share). On the same day, the company released the first quarterly report of 2022: in 2022q1, the operating revenue was 85 million yuan (- 15.57%), the net profit attributable to the parent company was 09 million yuan (- 72.25%), the net profit deducted from non net profit was 05 million yuan (- 82.69%), the net operating cash flow was – 24 million yuan (- 564.24%), and eps0 06 yuan / share (- 0.15 yuan / share). Taking into account the increase in the phased costs of the company’s strategic transformation and the impact of the epidemic, we lowered the profit forecast for 20222023 and added a new profit forecast for 2024. It is estimated that the net profit attributable to the parent company in 20222024 will be RMB 243 (- 0.12) / 293 (- 0.25) / 351 million respectively, the EPS will be RMB 1.52/1.83/2.19 respectively, and the current stock price response P / E is 17.5/14.5/12.1 times respectively. The company’s rehabilitation equipment sub circuit is leading, with large growth space, and maintains the “buy” rating.
In the second year of the 14th five year plan, the company is expected to benefit from the bonus of rehabilitation policy in 2022
Rehabilitation policies have been issued one after another. In June 2021, the National Health Commission issued the opinions on accelerating the development of rehabilitation medical work and the national 14th five year plan, which successively put forward new development goals for rehabilitation medical work. The policies continue to increase. As the 14th five year plan enters the second year, the orders for medical institutions to purchase rehabilitation equipment are expected to increase the company’s performance, The company is expected to fully benefit from the increment brought by the construction and upgrading of Rehabilitation Medicine Department of medical institutions and rehabilitation centers.
The expansion of product lines, the layout of high-end products and the investment in the construction of Zhengzhou rehabilitation Industrial Park have driven long-term steady growth
(1) strong R & D strength, and the product line is expected to continue to expand. In 2021, the company added 45 medical device registration certificates / filing certificates, and obtained 180 medical device registration certificates / filing certificates in total. (2) Develop high-end products, expand the R & D team and make a long-term layout. The company’s research projects include high-end products such as postpartum rehabilitation low-frequency stimulation treatment system. In 2021, the company had 384 R & D personnel (+ 75), accounting for 24.60% (+ 0.99pct). (3) Invest in the construction of Zhengzhou rehabilitation Industrial Park, comply with the dividend of rehabilitation policy and help introduce high-end talents.
Risk tip: the construction of the rehabilitation department of the general hospital is lower than expected, and the promotion of the company’s new products is lower than expected.
