\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 95 Autek China Inc(300595) )
Event: on the evening of April 26, 2022, the company released the first quarterly report of 2022. During the reporting period, the company realized an operating revenue of 371 million yuan, a year-on-year increase of 29.35%; The net profit attributable to the parent company was 148 million yuan, a year-on-year increase of 7.24%; Deducting non net profit of 138 million yuan, a year-on-year increase of 28.66%. Net operating cash flow was 159 million yuan, a year-on-year increase of 0.65%.
Under the disturbance of local epidemic, the non net profit deducted in Q1 exceeded expectations. In the first quarter, the company achieved high growth in revenue and non net profit deduction, with a bright performance. Among them, the total non recurring profit and loss is about 10.42 million, which changes greatly compared with the same period of last year, mainly due to: 1) the investment income recognized by transferring the equity of subsidiaries in the same period of 2021 is about 20 million, but there is no such change in the current period; 2) The company adjusted the structure of idle fund financial products, and the financial income and interest income decreased by about 4.15 million yuan compared with the same period of last year. Since March, the epidemic situation in China has rebounded, especially in East China, which accounts for a large proportion of the company’s revenue. Some regions have adopted epidemic prevention and control policies to restrict or stop the normal operation of Ophthalmology and optometry service institutions, which has put some pressure on the company’s product sales and optometry service revenue. Under the disturbance of the epidemic situation, the company still handed in brilliant answers in the first quarter, mainly due to the fact that the corneal shaping lens industry is still in a high boom channel with continuous improvement of penetration. We are optimistic that the company’s core product corneal shaping lens will continue to maintain rapid and large-scale production in 2022.
The gross profit margin rebounded slightly compared with 2021, and the cost side decreased steadily. In the first quarter of 2022, the company’s expense rate during the period was 29.56%, a decrease of 1.05pp compared with the same period in 2021q1, of which the sales expense rate was 18.10%, a slight decrease of 0.13pp year-on-year; The management expense ratio was 11.45%, with a year-on-year decrease of 0.22pp; The financial expense rate was 0.02%, with a year-on-year decrease of 0.69pp, mainly due to the increase of interest income from bank deposits in the current period. The profitability of the company is maintained at a high level. The overall gross profit margin and net profit margin of Q1 in 2022 are 77.56% and 44.03% respectively. The gross profit margin is slightly higher than that in 2021. We expect that it is due to the change of business structure. The hospital business dominated by terminal optometry services is more affected by the epidemic, and the proportion of revenue is reduced. While the gross profit margin of hospital business is lower than that of the company as a whole, resulting in a slight rise in the overall gross profit margin.
Accelerate the layout of visual terminals, and continuously enrich the product line. The company continues to expand its product line. 1) the clinical trial of the new corneal shaping lens with ultra-high oxygen permeability under research has been completed, and most samples have been enrolled and clinical observation has been carried out; 2) The hard mirror lubricant has completed the clinical trial and applied for registration, which is under approval; 3) Completed the registration test of scleral lens and is preparing for clinical trial; 4) The application of atropine eye drops in hospital has been completed and accepted. By the end of 2021, the company has participated in and controlled more than 350 visual terminals. In 2022, the company is expected to expand no less than 100 visual terminals (excluding fixed growth). With the increasing integrity of the company’s terminal service network, it is expected to form a better synergy with the upstream optometry products.
Profit forecast and investment suggestions: it is estimated that the company’s revenue from 2022 to 2024 will be RMB 1.691, 2.217 and 2.855 billion, with a year-on-year increase of 30.6%, 31.1% and 28.8%, and the net profit attributable to the parent company will be RMB 709, 939 and 1.234 billion, with a year-on-year increase of 27.82%, 32.49% and 31.33%. The company’s industry has high prosperity and strong consumption attributes. The company’s products have low penetration rate in China and good competition pattern. It is expected to maintain rapid growth and “buy” rating in the future.
Risk warning event: the risk of intensified market competition, the risk of relative concentration of raw material suppliers, and the risk of product market promotion failing to meet expectations.
