\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 96 Imeik Technology Development Co.Ltd(300896) )
The company announced 2022q1 results. In the first quarter of 2022, the revenue increased by 66% to 430 million yuan, and the net profit attributable to the parent increased by 64% to 280 million yuan. Forward looking and differentiated product layout, continuously expand the market through direct selling and distribution mode, and continue to promote the rapid growth of the company. The company has strong strength and can be expected in the future, and maintains the buy rating.
Key points supporting rating
In the first quarter, the company’s revenue and performance performance were brilliant, and the growth of core categories drove the company to move up steadily. In 2022q1, the company’s revenue increased by 66.07% to 430 million yuan, and the net profit attributable to the parent company increased by 64% to 280 million yuan, mainly driven by the expansion of hi body series products and the high growth of bonida sales. The company’s new product, Rubai angel, is steadily advancing. It is expected to continue the sales trend of 2021q4 and become another driving force for the company’s growth.
The improvement of product structure and the superposition of scale effect continue to broaden the profitability of the company. In 2022q1, the gross profit margin is 94.45% (+ 1.95pcts), the net profit margin is 65.03% (+ 1.09pcts), and the sales / management / R & D expense ratio is 12.52% / 5.08% / 6.75%, with year-on-year changes of + 1.83pct / + 0.55CT / – 2.26pct respectively. The rise of gross profit margin is mainly due to the improvement of the company’s product structure on the one hand, that is, the proportion of hi body series products and bonida continues to rise; On the other hand, with the continuous growth of product sales, the cost is diluted under the company scale effect. On the expense side, the sales rate has increased to a certain extent, which is mainly due to the expansion of the company’s sales team and the gradual promotion of yubai Angel products; In addition, the labor cost of management personnel has increased, driving the management rate to rise slightly. With the growth of sales scale, accounts receivable increased significantly, reaching RMB 80 million in 22q1 (RMB 30 million in the same period last year). Combined with the small change in the turnover days of accounts receivable (an increase of 5 days year-on-year), the overall operation of the company is better; In addition, the long-term equity investment was 995 million yuan (33 million yuan in the same period last year), mainly due to the increase of the company’s investment in South Korea HBP and Beijing Yunyi in 2021.
The company’s product power continues to be released to jointly drive future growth. For the core category hi body, on the one hand, the market for removing neck lines is expected to continue to expand. At the same time, with the stricter supervision of medical beauty, hi body is also expected to increase its market share in Shuiguang needle, and the future space is still broad; The new product is a cross-linked hyaluronic acid + PLLA ethylene glycol copolymer microsphere product, which will bring a strong driving force for the company’s growth with the subsequent company’s increased promotion and large-scale product volume. In addition, the products under development have a rich layout, including the second-generation implant line, modified sodium hyaluronate gel of medical polyvinyl alcohol gel microspheres, botulinum toxin A for injection, liraglutide injection, etc. With the introduction of products, it can continue to drive growth.
Valuation
We estimate that the revenue from 2022 to 2024 will be 2.25/32/4.24 billion yuan, and the net profit attributable to the parent company will be 1.53/2.19/2.93 billion yuan; PE was 69 / 48 / 36 times respectively, maintaining the buy rating.
Main risks of rating
Product safety risk; Risk of new product R & D and listing; Policy risk; Competition increases risk.
