\u3000\u3 Shengda Resources Co.Ltd(000603) 882 Guangzhou Kingmed Diagnostics Group Co.Ltd(603882) )
Event: on the evening of April 26, 2022, the company released its annual report for 2021: the company achieved an annual operating revenue of 11.943 billion yuan, a year-on-year increase of 44.88%; The net profit attributable to the parent company was 2.22 billion yuan, a year-on-year increase of 47.03%; Deduct non net profit of RMB 2.189 billion, with a year-on-year increase of 50.18%. The net cash flow from operating activities was 2.088 billion yuan, a year-on-year increase of 37.09%; The basic earnings per share is 4.80 yuan, and it is proposed to distribute a cash dividend of 1.28 yuan per share (including tax) to all shareholders.
Among them, the operating revenue in the fourth quarter of 2021 was 3.326 billion yuan, a year-on-year increase of 37.64%; The net profit attributable to the parent company was 547 million yuan, a year-on-year increase of 20.37%; Deduct non net profit of 541 million yuan, with a year-on-year increase of 23.54%. The net cash flow from operating activities was 1.022 billion yuan.
On the same day, the company released the report for the first quarter of 2022. In the first quarter, the company achieved an operating revenue of 4.251 billion yuan, a year-on-year increase of 58.70%; The net profit attributable to the parent company was 850 million yuan, a year-on-year increase of 58.00%; Deduct non net profit of 837 million yuan, with a year-on-year increase of 57.84%. The net cash flow from operating activities was 90 million yuan, a year-on-year decrease of 43.78%.
Bid farewell to the “horse racing enclosure” and turn to the high-quality development of “intensive cultivation”
In 2021, the company’s third-party medical diagnostic services achieved an operating revenue of 11.304 billion yuan, a year-on-year increase of 43.63%; Among them, the large-scale covid-19 screening is about 1.8 billion yuan. Optimize the company’s customer structure and achieve high product quality:
(1) guided by clinical and disease, the company has continuously improved its product line. Up to now, it has 75 types of testing technology, and the total number of external service items exceeds 3000. In 2021, the business in key disease areas grew rapidly: the revenue from diagnosis business of solid tumor, nerve & clinical immunity, infectious diseases (excluding covid-19) and blood diseases increased by 45.87%, 38.21%, 34.81% and 31.90% respectively year-on-year. After deducting covid-19 income, the company’s special inspection business accounts for 50.45%, and high-end inspection projects have become the core driving force of the company’s performance growth.
(2) the company’s customer structure was further optimized, in which the number of tertiary hospital partners was further increased, the proportion of tertiary hospital customer revenue (excluding covid-19) was further increased to 35.86%, and the revenue increased by 33.27% year-on-year. Among them, the top 100 tertiary hospital increased by 55.11% year-on-year, and the sales growth was much higher than that of other customer groups, driving the company’s overall business to the high-end level; The unit output of customers increased by 10.42% year-on-year.
(3) the laboratory business jointly built by the company has grown rapidly and has become an important driving force for the growth of medical examination business. 670 joint construction projects and more than 150 new expansion projects have been operated. The customer structure has been continuously optimized. The number of secondary / tertiary hospitals has increased to 80% and the contribution business accounts for 85%.
The scale effect and project structure optimization improved the gross profit margin, and the net profit margin also increased year-on-year
As the provincial laboratories have been basically laid out in the early stage, the company’s fixed asset investment and personnel growth have slowed down, and the income scale has increased significantly, resulting in obvious dilution effect of fixed costs; At the same time, with the increasing proportion of high-end projects and high-quality customers’ income, the project structure and customer structure have been optimized. In 2021, the comprehensive gross profit margin increased by 0.60pct to 47.29%, of which the gross profit margin of main business increased by 0.45pct to 47.20%, and the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 12.02%, 7.43%, 4.34% and 0.08% respectively, with year-on-year changes of + 0.01pct, -0.12pct, -0.48pct and -0.13pct respectively, The overall net interest rate increased by 0.70pct to 19.79% year-on-year. In the first quarter of 2022, the company’s overall net profit margin increased by 0.74pct to 21.39% year-on-year.
Profit forecast and investment rating: we expect the operating revenue from 2022 to 2024 to be 13.084 billion / 12.215 billion / 13.30 billion respectively, with a year-on-year growth rate of 10% / – 7% / 7% respectively; The net profit attributable to the parent company was 2.051 billion / 1.707 billion / 1.727 billion respectively, with an increase of – 8 / – 17% / 1% respectively; EPS is 4.40/3.66/3.71 respectively, corresponding to 16 times PE in 2021 according to the closing price on April 26, 2022. Maintain the “buy” rating.
Risk tips: the risk of continued impact of the epidemic situation of novel coronavirus pneumonia; Risk of regulatory policy changes; Market competition risk; Risk of price decline of inspection items.
