\u3000\u3 Guocheng Mining Co.Ltd(000688) 580 Nanjing Vishee Medical Technology Co.Ltd(688580) )
Event: the company released the 2021 annual report and the first quarterly report of 2022. In 2021, the operating revenue was 430 million yuan, a year-on-year increase of 13.66%, the net profit attributable to the parent was 178 million yuan, a year-on-year increase of 23.77%, and the non net profit deducted was 150 million yuan, a year-on-year increase of 16.98%; In the first quarter of 2022, the operating revenue was 54.11 million yuan, a year-on-year decrease of 32.53%, the net profit attributable to the parent was 17.01 million yuan, a year-on-year decrease of 45.62%, and the non net profit deducted was 9.1 million yuan, a year-on-year decrease of 64.88%.
Share based payment fees affect the apparent growth rate, and magnetic stimulation products continue to drive performance growth. In 2021, the company’s revenue was 430 million yuan (year-on-year + 13.66%, the same below), the net profit attributable to the parent company was 178 million yuan (+ 23.77%), and the non net profit deducted was 150 million yuan (+ 16.98%). After excluding the impact of 181650 million yuan after share based payment tax, the net profit attributable to the parent company and the non net profit deducted maintained rapid growth, with a year-on-year increase of 36.42% and 31.13% respectively. It was mainly driven by magnetic stimulation products. The revenue of the company’s magnetic stimulation products was 169 million yuan (+ 67.59%), accounting for 39.46%, It has become the largest sales category of the company. In a single quarter, the revenue of 2021q4 was 127 million yuan (+ 2.79%), the net profit attributable to the parent company was 70.24 million yuan (+ 21.00%), and the non net profit deducted was 59.62 million yuan (+ 22.90%). The fluctuation of the revenue side was affected by the decline in the sales of electric stimulation products and the high base in the same period of 2020; In 2022q1, the income was 54.11 million yuan (- 32.53%), the net profit attributable to the parent company was 17.01 million yuan (- 45.62%), and the non net profit deducted was 9.1 million yuan (- 64.88%). After excluding the influence of 3.9546 million yuan after share based payment tax, the net profit attributable to the parent company and non net profit deducted decreased by 32.98% and 49.61% respectively year-on-year. We expect that on the one hand, the income is under pressure due to the traditional off-season in the first quarter and the impact of the epidemic; On the other hand, the company continued to invest in R & D, with R & D expenses of 12.93 million yuan (+ 26%), accounting for 23.90% (+ 11pp) of revenue, superimposed with the impact of share based payment expenses and high base in the same period of 2020.
The gross profit margin remained stable and the financial expense rate decreased, resulting in a slight decrease in the three expense rates in 2021. The gross profit margins of 2021 and 2022q1 are 74.78% (+ 1.15pp) and 74.57% (+ 1.29pp) respectively, and the gross profit margin remains stable; The total expense rates of the three items are 23.14% (- 3.25pp) and 39.68% (+ 13.68pp) respectively. The change of expense rate in 2021 is mainly due to the decrease of financial expenses caused by the increase of interest income, with the financial expense rate of – 3.85% (- 2.28pp). The increase of expense rate in 2022q1 is mainly due to the increase of personnel expenses caused by the new sports rehabilitation and medical and aesthetic department, as well as the slowdown of income growth affected by off-season and epidemic situation. The sales expense rate is 27.81% (+ 7.11pp), The management fee rate was 18.31% (+ 8.75pp).
Adhere to the driving of R & D and innovation, continuously iterate and upgrade the original business, start the product transformation of new product exoskeleton Siasun Robot&Automation Co.Ltd(300024) and actively layout the energy source technology platform in the field of medicine and beauty. The company pays attention to independent research and development, pushes through the old and brings forth the new, and enriches the product pipeline. The R & D investment in 2021 and 2022q1 is 63.52 million yuan (+ 85.24%) and 12.93 million yuan (+ 25.56%) respectively. 1) Iterative upgrading of the original business line: product iterative upgrading is continuously carried out in the fields of electrical stimulation, magnetic stimulation and electrophysiology, so as to improve the patient experience, expand the treatment field and optimize the clinical treatment effect. 2) The research and development of new products have achieved positive results and laid out the fields of sports rehabilitation and Medical Aesthetics: exoskeleton Siasun Robot&Automation Co.Ltd(300024) began product transformation, and the xwalk200 / 300 lower limb walking exoskeleton auxiliary training device, xwalk100 rehabilitation weight reduction walking training vehicle and x-locom series upper and lower limb active and passive rehabilitation training system have been successfully certified. The company has formed a sports rehabilitation product line and broadened the strategic layout in the subdivided field of rehabilitation; Actively layout the R & D projects of energy source technology platform, and the products will be applied to gynecology and obstetrics, dermatology, medical beauty institutions and non-medical institutions. At present, the pre research work on the core functions of new technology platforms such as RF and laser has been completed, and the RF concept prototype has been designed and realized the basic functions, so as to enter the field of medical beauty and continue to expand the product line and target market.
Profit forecast and investment suggestions: according to the latest performance, considering the impact of epidemic situation, amortization expenses of equity incentive and the continuous high growth of the company’s magnetic stimulation products, we fine tune the profit forecast. It is estimated that the company’s revenue from 2022 to 2024 will be 518, 655 and 828 million yuan (534 and 671 million yuan before the adjustment in 2022 and 2023), with a year-on-year increase of 20.5%, 26.5% and 26.3%; The net profit attributable to the parent company was RMB 232, 309 and 409 million (RMB 238 and 315 million before the adjustment in 2022 and 2023), with a year-on-year increase of 30.2%, 33.4% and 32.3%; The corresponding EPS is 3.39, 4.52 and 5.98 yuan. At present, the company’s share price corresponds to 15 / 11 / 8 times PE from 2022 to 2024. Considering that the company is one of the leaders of pelvic floor rehabilitation, it is expected to continue to expand its leading advantage with the combination of magnetoelectricity. At the same time, it is expected to benefit from the increasing rehabilitation demand in China for a long time and maintain the “buy” rating.
Risk warning events: R & D failure risk, policy risk, market competition risk, and the public data used in the research report may be delayed or not updated in time.
