\u3000\u3 China Vanke Co.Ltd(000002) 223 Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) )
Performance Brief
On April 27, 2022, the company released the first quarter report of 2022. In 2022, Q1 company realized a revenue of 1.821 billion yuan, a year-on-year increase of + 9.6%; The net profit attributable to the parent company was 464 million yuan, a year-on-year increase of + 1.1%; The net profit deducted from non parent company was 393 million yuan, a year-on-year increase of - 10.6%;
Business analysis
Q1 revenue maintained steady growth, and covid-19 business base affected short-term growth. In the first quarter, the epidemic occurred repeatedly in some parts of China, which is expected to have an impact on the company's sales promotion and product transportation logistics. In addition, due to the large business base of overseas epidemic demand in 2021q1, it has put some pressure on the company's short-term apparent growth. After the improvement of China's business activities and logistics situation in the future, the company is expected to return to the growth track.
R & D expenses increased significantly, and products under research continued to enter the harvest period. In the first quarter of 2022, the company's gross profit margin was 50.68%, down 1.2pct year-on-year; The company's R & D expenditure was 129 million yuan, a year-on-year increase of 78.6%, and the R & D expenditure rate reached 7.08%. The company's R & D focused on promoting product performance upgrading and improvement around the main strategic business segments, and the R & D investment increased significantly. Recently, AED products have been successfully approved in China, which is expected to play a positive role in strengthening the cost side advantage of business and improving the overall gross profit margin of the first aid sector. In addition, a series of innovative products such as CGM have gradually entered the harvest period, and the long-term market development can be expected.
Focus on the three core businesses, and the employee stock ownership plan shows development confidence. In the employee stock ownership plan launched by the company in 2021, the unlocking period set the assessment target of net profit of no less than 1.49 billion yuan in 2022, covering 42 management and core employees. Although the amortization of incentive expenses has a certain impact on profits in the short term, it has improved the enthusiasm of the company's core bones and demonstrated the company's confidence in future development.
Profit adjustment and investment suggestions
We are optimistic about the development prospects of the company in the three core growth tracks of respiration, blood glucose, household POCT and disinfection sensing control. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.605 billion, RMB 1.846 billion and RMB 2.160 billion respectively, with a year-on-year increase of 8%, 15% and 17%, EPS of RMB 1.60, 1.84 and 2.16 respectively, and the current price corresponding to PE is 14, 12 and 10 times, maintaining the "buy" rating.
Risk tips
Acquisition integration is less than expected risk; Overseas market expansion is less than expected risk; New product R & D is less than expected risk; Goodwill risk.
