\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 763 Topchoice Medical Co.Inc(600763) )
Event:
On April 27, the company released the 2021 annual report and the first quarterly report of 2022. In 2021, the company realized a revenue of 2.781 billion yuan, a year-on-year increase of 33.19%, and a net profit attributable to the parent company of 703 million yuan, a year-on-year increase of 42.67%. After deducting non profits, the net profit attributable to the parent company was 671 million yuan, a year-on-year increase of 41.74%; In the first quarter of 2022, the revenue was 655 million yuan, a year-on-year increase of 3.74%, the net profit attributable to the parent was 166 million yuan, a year-on-year increase of 1.25%, and the net profit attributable to the parent after deduction was 163 million yuan, a year-on-year increase of 0.99%.
Comments:
The epidemic briefly affected the growth rate of 2022q1 and is expected to recover gradually in the future
In 2021, the company’s medical service revenue in Zhejiang Province was 2.374 billion yuan, a year-on-year increase of 31%; Medical services outside the Province amounted to 259 million yuan, a year-on-year increase of 30%. In 2022, the medical service revenue in Q1 province was 567 million yuan, with a year-on-year increase of 4.26%. Affected by the epidemic, the growth rate slowed down slightly. The income of medical services outside the province was 551574 million yuan, a year-on-year decrease of 9.50%. In 2022, due to strict county-level prevention and control, the demand for medical treatment in Hangzhou and local places was affected, and the outpatient business outside the province was affected due to the epidemic in Cangzhou Stomatology, Nanjing Jinling, Suzhou cunji stomatology and other hospitals. Due to the strong timing of oral diseases, the follow-up business is expected to recover gradually. In 2021, the company’s expenses remained at a low level. In 2021, the sales expense rate was 0.89%, basically unchanged year-on-year, and the management expense rate was 9.3%, down 1.72 percentage points year-on-year. In addition, the company has gradually improved its operation capacity through management to achieve cost reduction and efficiency increase. In 2021, the gross profit margin of the company was 46.06%, with a year-on-year increase of 0.89 PCTs, and the net profit margin was 28.27%, with a year-on-year increase of 2.17 PCTs; In 2022, the gross profit margin and net profit margin of Q1 company were basically the same.
All businesses grew well, and the planting business in 2022q1 performed well
In 2021, the company’s orthodontic business realized a revenue of 534 million yuan, a year-on-year increase of 30%; The income from planting business was 441 million yuan, a year-on-year increase of 38%; Pediatric business realized an income of 530 million yuan, a year-on-year increase of 32%; The revenue from repair business was 427 million yuan, a year-on-year increase of 25%. In the first quarter of 2022, due to the impact of the epidemic, the company’s orthodontic business realized a revenue of 124 million yuan, a year-on-year increase of 4.03%; The income from planting business was 102 million yuan, a year-on-year increase of 12.71%.
The number of outpatients continued to grow rapidly, and the dandelion plan was steadily promoted
In 2021, the business area of the company’s oral medical services exceeded 200000 square meters, 2246 dental chairs were opened, and the number of oral medical clinics reached 2.7982 million, a year-on-year increase of 28%. The dandelion plan of the company is advancing steadily. At present, 43 medical institutions are arranged in Zhejiang Province, and 8 are in the preparatory stage. Among the hospitals of cunji system, Wuhan cunji stomatological hospital had 108700 outpatients in 2021, with a year-on-year increase of 82% and a year-on-year increase of 63% in operating revenue, realizing profit and loss balance.
Profit forecast and investment rating: we predict that the impact of the epidemic will continue in the short term, and adjust the future profit forecast accordingly. It is estimated that the operating revenue from 2022 to 2024 will be RMB 3.385/4.250/5.373 billion respectively (the value before 2022 / 2023 is RMB 3.814/4.911 billion), and the net profit attributable to the parent company will be RMB 805/10.06/1.276 billion respectively (the value before 2022 / 2023 is RMB 975/1.273 billion). Maintain the “buy” rating.
Risk tips: changes in industrial policies, impact of epidemic situation, risk of price fluctuation of medical services, etc.
