\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 763 Topchoice Medical Co.Inc(600763) )
The performance in 2021 was in line with expectations, and the performance in 2022q1 was affected by the epidemic. In 2021, the company achieved a revenue of RMB 2.781 billion, a year-on-year increase of 33.19%, a net profit attributable to the parent company of RMB 703 million, a year-on-year increase of 42.67%, deducting a net profit not attributable to the parent company of RMB 671 million, a year-on-year increase of 41.74%, and a net cash flow from operating activities of RMB 939 million, a year-on-year increase of 32.59%.
2021q4 company achieved revenue of 644 million yuan, a year-on-year increase of 6.34%, net profit attributable to parent company of 83 million yuan, a year-on-year decrease of 10.87%, net profit attributable to non parent company of 64 million yuan, a year-on-year decrease of 29.34%, and 2022q1 company achieved revenue of 655 million yuan, a year-on-year increase of 3.74%, net profit attributable to parent company of 166 million yuan, a year-on-year increase of 1.25%, net profit attributable to non parent company of 163 million yuan, a year-on-year increase of 0.99%.
The income of implant orthodontics increased rapidly in 2021, and the implant sector maintained a good performance in 2022q1. In 2021, the revenue of the company’s planting sector was 441 million yuan, a year-on-year increase of 38%, accounting for 17%, with a year-on-year change 1PCT; The income of orthodontic sector was 534 million yuan, with a year-on-year increase of 30%, accounting for 21%, which was flat year-on-year; The revenue of Pediatrics was 530 million yuan, a year-on-year increase of 32%, accounting for 20%, which was flat year-on-year; The revenue of the repair sector was 427 million yuan, with a year-on-year increase of 25%, accounting for 16%, with a year-on-year change -1pct. In 2022q1, the company’s planting sector maintained a good growth, with a revenue scale of 102 million yuan, a year-on-year increase of 12.71%, accounting for 16.34%, a year-on-year change of 1.34 PCT, and other sectors maintained positive growth.
The three general hospitals of hangkou, Chengxi and ningkou maintained a rapid growth rate. In 2021, the company achieved a revenue of RMB 2.374 billion in Zhejiang Province, with a year-on-year increase of 31%, accounting for 90%, which was flat year-on-year, and a revenue of RMB 259 million outside the province, with a year-on-year increase of 30%, accounting for 10%. In 2021, the three general hospitals of the company maintained rapid growth. Hangkou general hospital realized a revenue of 736 million yuan, a year-on-year increase of 21.07%, Chengxi general hospital realized a revenue of 561 million yuan, a year-on-year increase of 22.23%, and ningkou general hospital realized a revenue of 175 million yuan, a year-on-year increase of 38.25%.
Showing a trend of increasing profitability. In 2021, the gross profit margin of the company was 46.06%, with a year-on-year increase of 0.89pct, and the net profit margin was 28.27%, with a year-on-year increase of 2.17pct. The sales expense rate, management expense rate and financial expense rate were 0.89%, 11.43% and 0.83% respectively, with changes of 0.05pct, – 1.51pct and 0.1pct respectively.
The outpatient volume maintained a growth rate of 28%, and the customer unit price increased slightly. In 2021, the number of outpatients of the company reached 2.7982 million, a year-on-year increase of 28%, of which 2.43 million were in Zhejiang Province, a year-on-year increase of 29%, and 370000 were outside the province, a year-on-year increase of 23%. Hangkou general hospital reached 680000 person times, with a year-on-year increase of 15%. In 2021, the company’s passenger unit price will reach around 930 yuan / person, which has increased somewhat.
The dandelion plan is advancing steadily, and the opening of the new hospital in the next year will bring greater performance flexibility. By the end of 2021, the company had 60 stomatological hospitals that had been opened and 10 new ones, with a total business area of more than 200000 square meters. By the end of 2021, there will be 19 dandelion hospitals, of which 9 are profitable. The company expects that by the end of 2022, there will be 40 dandelion hospitals. By the end of 2021, the company’s total number of dental chairs reached 2246, an increase of about 260. The total number of employees of the company reached 5242, an increase of 1124, of which more than 600 are dentists reserved by the company and the rest are nurses. The company expects that the capital expenditure in 2022 will reach 900 million yuan, which will be used for the branch expansion project of dandelion plan and the expansion of some general hospitals. According to the company’s plan, Zijingang hospital and Chengxi new hospital will be opened and operated successively next year, which will bring greater performance flexibility to the company.
Profit forecast and investment rating: considering the epidemic situation in 2022 and dandelion branch’s contribution to greater performance increment in 2023, the company’s revenue from 2022 to 2024 is expected to be 3.202 billion yuan, 4.143 billion yuan and 5.362 billion yuan respectively, with a year-on-year increase of 15.2%, 29.4% and 29.4%, and the net profit attributable to the parent company is 819 million yuan, 1.067 billion yuan and 1.431 billion yuan respectively, with a year-on-year increase of 16.5%, 30.4% and 34.1%, corresponding to PE of 46.18, 35.42 and 26.41 times respectively. Considering the strong brand power of the company’s oral cavity Chengxi new hospital district and Zijingang Hospital District opened successively this year, dandelion branch made steady progress, covered for the first time, and gave a “buy” rating.
Stock price catalyst: the epidemic has been quickly controlled, Zijingang hospital has opened, and the new hospital area in the west of the city has opened.
Risk factors: medical risk, covid-19 epidemic risk and intensified competition risk.
