\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 33 Sonoscape Medical Corp(300633) )
Event: on April 27, 2022, the company released its annual report for 2021: the company achieved an annual operating revenue of 1.445 billion yuan, a year-on-year increase of 24.20%; The net profit attributable to the parent company was 247 million yuan, a year-on-year increase of 634.43%; Deduct non net profit of 168 million yuan, with a year-on-year increase of 285.54%. The net cash flow from operating activities was 303 million yuan, a year-on-year increase of 11.75%; The basic earnings per share is 0.62 yuan, and it is proposed to distribute a cash dividend of 1.25 yuan (including tax) to all shareholders for every 10 shares.
Among them, the operating revenue in the fourth quarter of 2021 was 504 million yuan, a year-on-year increase of 11.90%; The net profit attributable to the parent company was 108 million yuan, a year-on-year increase of 247.53%; Deduct non net profit of RMB 50 million, with a year-on-year increase of 157.30%. The net cash flow from operating activities was 223 million yuan.
On the same day, the company released the report for the first quarter of 2022. In the first quarter, the company achieved an operating revenue of 371 million yuan, a year-on-year increase of 31.53%; The net profit attributable to the parent company was 51 million yuan, a year-on-year increase of 41.36%; Deduct non net profit of 49 million yuan, an increase of 75.59% year-on-year. The net cash flow from operating activities was 52 million yuan, a year-on-year increase of 574254%.
China’s marketing system continues to deepen management and overseas marketing system opens up new market space
In terms of production lines, (1) the company’s color ultrasound products achieved an operating revenue of 946 million yuan in 2021, a year-on-year increase of 20.61%; The gross profit margin decreased by 0.24pct to 66.73% year-on-year. Based on S60 high-end ultrasound platform, the company launched derivative models such as P60 of Obstetrics and Gynecology specialty to further enhance the competitiveness of ultrasound products. (2) The operating revenue of endoscopes and therapeutic instruments under endoscopes was 428 million yuan, with a year-on-year increase of 39.03%, and the gross profit margin increased by 3.18 PCT to 68.68%. The company’s second-generation bronchoscope, ring array ultrasonic endoscope and other new products have been approved for listing. The newly developed 4k-30 hard mirror has outstanding technical level, and the high-end functions such as variable hardness and optical amplification of soft mirror body will be gradually introduced. The comprehensive strength of the company’s endoscope products will be further improved. (3) The operating income of accessories and other products was 62 million yuan, which was basically the same as that of last year; Gross profit margin increased by 4.29pct to 66.74% year on year
In terms of regions, (1) the company achieved a revenue of 779 million yuan in the Chinese market in 2021, with a year-on-year increase of 16.74%; The gross profit margin increased by 4.77pct to 80.15% year on year. China’s marketing system continues to deepen management, integrate resources and strengthen execution. In terms of its own team, ultrasound production line and endoscope production line realize full-time and special training and management, improve per capita efficiency and create a refined marketing system; In terms of channel management, it has not only created a number of core agent teams and achieved a significant increase in the number of core agents, but also increased the full-time sales backbone of high-quality agents, which has also been significantly improved in the scale of secondary channels. (2) Foreign regions achieved an income of 666 million yuan, a year-on-year increase of 34.24%; The gross profit margin decreased by 1.98pct to 52.44% year-on-year. The overseas marketing system continues to explore new market space. With the help of the excellent performance of portable color Doppler ultrasound and the continuous installation under the background of the epidemic, the company has gradually established relevant professional channels of overseas bedside ultrasound and accumulated customer resources of clinical departments; After the launch of HD electronic bronchoscope products, it enriched the company’s product solutions in the respiratory department and played a relevant role in the overseas anti epidemic. With the promotion of bronchoscope products, the company accumulated relevant channels in the overseas respiratory department and expanded the growth space for endoscopes in the overseas respiratory market.
The scale effect is prominent, the period expense rate decreases, and the annual net interest rate increases significantly
In 2021, the company’s comprehensive gross profit margin increased by 0.94 PCT to 67.38%, the sales expense ratio decreased by 2.52 PCT to 25.37%, the management expense ratio decreased by 0.17 PCT to 6.29%, the R & D expense ratio decreased by 2.20 PCT to 18.21%, the financial expense ratio decreased by 2.10 PCT to 0.63%, and the overall net profit margin of the company increased by 21.09 PCT to 17.12%. We believe that the decrease of expense rate and the increase of overall net interest rate in each period are mainly due to the gradual appearance of scale effect with the growth of income. On the other hand, it is also related to the adjustment of equity incentive expenses, tax rate change and tax rate adjustment, Wilson performance compensation recognized in the current period and related interest of 41.19 million yuan.
In the first quarter of 2022, the comprehensive gross profit margin, sales expense rate, management expense rate, R & D expense rate, financial expense rate and overall net profit rate were 60.12%, 19.79%, 4.72%, 20.43%, 0.54% and 13.78% respectively, with changes of -2.10pct, -5.80 PCT, -2.14 PCT, -0.71pct, + 1.13pct and + 0.96pct respectively. The increase in exchange rate in the current period is mainly due to the increase in exchange rate in the current period.
Profit forecast and investment rating: we expect the company’s operating revenue to be 1.799 billion yuan / 2.220 billion yuan / 2.708 billion yuan from 2022 to 2024, with a year-on-year growth rate of 25% / 23% / 22% respectively; The net profit attributable to the parent company was 289 million yuan / 368 million yuan / 464 million yuan, an increase of 17% / 27% / 26% respectively; EPS is 0.67/0.86/1.08 respectively, corresponding to 38 times PE in 2022 according to the closing price on April 29, 2022. Maintain the “buy” rating.
Risk tips: the risk of continued impact of the epidemic situation of novel coronavirus pneumonia; Risk that R & D progress and sales promotion are not as expected; Exchange rate fluctuation risk; Industry policy risk; Risk of depreciation of new fixed assets.
