\u3000\u3 Guocheng Mining Co.Ltd(000688) 301 Iray Technology Company Limited(688301) )
Core view
In the first quarter of 2022, the operating revenue increased by 46.27% year-on-year, and the net profit attributable to the parent company increased by 35.47% year-on-year. In the first quarter of 2022, the company achieved a revenue of 327 million yuan, a year-on-year increase of 46.27%; The net profit attributable to the parent company was 101 million yuan, a year-on-year increase of 35.47%. After adding back the share payment expenses, the net profit attributable to the parent company was 115 million yuan, a year-on-year increase of + 54.49%; After deducting the non parent net profit of 112 million yuan, a year-on-year increase of 65.10%, and adding back the share based payment expenses, the non parent net profit was 126 million yuan, a year-on-year increase of 86.05%. The high growth of revenue and profit is mainly due to the steady growth of static series products such as Pufang medical and oral products, the continuous volume of dynamic series, and the rapid growth of dental, industrial and medical dynamic new products.
In the first quarter, the gross profit margin reached a new high, and the profit growth was dragged down by the share based payment expenses and the profit and loss from changes in fair value. The profitability of the company was further improved above the higher level in 2021. In the first quarter of 2022, the gross profit margin / net profit margin / deduction non net profit margin were 57.28% / 30.99% / 34.17% respectively, with a year-on-year change of + 6.62 / – 2.93 / + 3.90 PCT, mainly due to the further increase in the proportion of dynamic product revenue with high gross profit margin, and the continuous promotion of a number of cost reduction, speed-up and efficiency increase and process optimization measures of the company, which effectively digested some external supply chain pressure, Demonstrate strong cost control ability. In addition, share based payment fees and gains and losses from changes in fair value have a certain drag on profit growth. The expense side was basically stable. In the first quarter, the company’s sales / management / R & D / financial expense rates were 5.16% / 6.05% / 16.05% / – 0.25% respectively, with a year-on-year change of -0.81 / + 1.23 / + 5.34 / + 4.19 PCTs. The R & D expense rate was high, mainly due to the expansion of R & D personnel and the impact of share based payment expenses. In the first quarter, the company recognized non recurring profit and loss of -11 million yuan, of which the profit and loss from changes in fair value corresponding to the participation in Zhuhai Cosmx Battery Co.Ltd(688772) strategic placement (listed on the science and Innovation Board on October 15, 2021, with a sales restriction period of 36 months) was -36 million yuan. In the first quarter, the net operating cash flow of the company was 34 million yuan, a year-on-year decrease of 50.00%, mainly due to the increase in the purchase of raw materials.
The category expansion logic continues to be fulfilled, has strong growth, and is optimistic about the long-term development space. In the upstream core parts of the company’s card position, based on the platform based R & D system, the company has mastered the underlying core technology and rapidly expanded the application field. Dental and industrial new products have achieved rapid growth, and the category expansion logic continues to be fulfilled. In addition, there are abundant reserves of high-end new products such as high-end veterinary, C-arm, breast, radiotherapy, gastrointestinal and DSA detectors, with sufficient long-term growth momentum. The company has strong R & D strength, outstanding product performance and cost performance advantages, covers the world’s top customer resources, has clear logic for expanding categories in the medium term, has broad prospects for long-term solutions, and is optimistic about the long-term growth potential. Risk warning: industry competition intensifies; New business expansion is less than expected; Risk of technology being overtaken.
Investment advice: maintain the “buy” rating.
The company is the leader of China’s digital X-ray detector, benefiting from the general trend of domestic substitution in the industry. We are optimistic about the long-term growth potential of the company. We maintain the profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 601 / 795 / 1043 million, the corresponding EPS will be RMB 8.29/10.96/14.37, and the corresponding PE will be 36 / 28 / 21 times, maintaining the “buy” rating.
