\u3000\u3 Guocheng Mining Co.Ltd(000688) 580 Nanjing Vishee Medical Technology Co.Ltd(688580) )
The company released its 2021 annual report: during the reporting period, the company achieved an operating revenue of 430 million yuan, a year-on-year increase of 13.66%; The net profit attributable to the parent company was 178 million yuan, a year-on-year increase of 23.77%, and the net profit attributable to the parent company after deducting non-profit was 150 million yuan, a year-on-year increase of 16.98%. Excluding the impact of share based payment expenses, during the reporting period, the company realized a net profit attributable to the parent company of 196 million yuan, a year-on-year increase of 36.42%, and a net profit attributable to the parent company after deducting non-profit of 168 million yuan, a year-on-year increase of 31.13%.
The company released the first quarter report of 2022: during the reporting period, the company achieved an operating revenue of 54.11 million yuan, a year-on-year decrease of 32.53%; The net profit attributable to the parent company was 17.01 million yuan, a year-on-year decrease of 45.62%, and the net profit attributable to the parent company after deducting non-profit was 910 yuan, a year-on-year decrease of 64.88%. Excluding the impact of share based payment expenses, during the reporting period, the company realized a net profit attributable to the parent company of 20.96 million yuan, a year-on-year decrease of 32.98%, and a net profit attributable to the parent company after deducting non-profit of 13.05 million yuan, a year-on-year decrease of 49.61%.
The performance in 2021 is in line with the expectation, and the pelvic floor magnetic rapid discharge: 1) in 2021, the revenue and profit increased rapidly, especially the magnetic stimulation products became the largest sales category of the company for the first time, with a revenue of 169 million yuan, a year-on-year increase of + 67.6%. It is verified that the magnetic stimulation products have entered the rapid discharge stage since they were included in the clinical guidelines, and it is expected to take over the electric stimulation to drive the continuous growth of the company. 2) In 2021q4, the revenue reached 127 million yuan in a single quarter, with a year-on-year increase of 2.8%. We believe that in addition to the high base of 2020q4, it is also affected by the slowdown in the growth of electric stimulation business. 3) In the traditional off-season of 2022q1, the factors affecting the operation of the epidemic and the continuous increase of R & D investment in the company’s strategic upgrading are superimposed, and the growth stage of the company’s revenue and profit is under pressure. We expect that with the resumption of growth of the pelvic floor health business in the peak season under the combination of magnetism and electricity and the increase in the contribution of new products to the market, it is still expected to achieve rapid growth throughout the year.
Continue to increase R & D investment, and the development of one body and two wings can be expected: the company has comprehensive competitive advantages such as brand, academic, clinical, channel and after-sales service accumulated for many years. The continuous development of new products, new projects and new fields will help to open up long-term growth space. In 2021, the R & D investment reached 63.52 million yuan, a year-on-year increase of + 85.26%. At the end of the period, there were 161 R & D personnel, a year-on-year increase of + 28.8%. It will vigorously promote the continuous expansion of product pipelines, with magnetic stimulation products as the main body and rehabilitation Siasun Robot&Automation Co.Ltd(300024) and medical beauty energy source products as the “two wings”, build a comprehensive and leading product matrix, and segment the market from pelvic floor and postpartum rehabilitation, neurological rehabilitation and mental rehabilitation, To inject new energy into the development of the company’s high-quality medical devices and the continuous development of the company’s high-quality medical devices.
Profit forecast and rating: we expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 234, 308 and 407 million, with a year-on-year increase of 31.5%, 31.8% and 32.0%, corresponding to PE of 15x, 11x and 8x. We are optimistic that the company, as the leader of pelvic floor and postpartum rehabilitation equipment segmentation, is expected to continue to drive growth through the combination of magnetoelectricity at the product end and the continuous expansion of the channel end; At the same time, the new generation of electromagnetic stimulation, energy sources, rehabilitation Siasun Robot&Automation Co.Ltd(300024) and other projects under research are advancing rapidly, which is expected to open the long-term ceiling and maintain the “buy” rating.
Risk tips: the epidemic affects the operation risk, the promotion of new products is less than expected, the risk of intensified industry competition and the risk of loss of technical talents.
