\u3000\u30003 Wus Printed Circuit (Kunshan) Co.Ltd(002463) 00246)
He has been deeply engaged in the field of medical devices for nearly 30 years, driven by two major businesses: monitoring equipment and blood purification. Founded in 1993, the company is deeply engaged in the field of medical devices. It is one of the leading companies of monitoring equipment in China, with a sales network all over the world. On the basis of consolidating the monitoring equipment, the company actively improved the whole industry chain strategy of Nephrology medicine and improved its market competitiveness in the field of hemodialysis. Affected by covid-19 epidemic in 2020, the sales volume of the company's monitoring equipment increased rapidly, and the products were exported overseas and recognized by customers; In 2021, the company's revenue was 1.091 billion yuan (yoy-22%), and the net profit attributable to the parent company was 64 million yuan (yoy-82%), of which the income of blood purification equipment and consumables accounted for 61.8%.
The domestic substitution process is accelerated, and the hemodialysis business has broad prospects. Blood purification is one of the main treatment methods for patients with acute and chronic renal failure. Hemodialysis is the most commonly used and important blood purification method at present. According to the annual report of Fresenius, the global hemodialysis market has steadily increased from 66.8 billion euros in 2015 to 82 billion euros in 2020 (CAGR from 2015 to 20 was 4.2%). According to the blue book of Chinese medical devices (2021 Edition), the market scale of dialysis machines, dialyzers and dialysis consumables in China is expected to reach 5.2 billion yuan, 8.8 billion yuan and 6.6 billion yuan respectively in 2025. However, imported products account for more than 70% of the market share in the high-value medical consumables market of hemodialysis, and there is still broad space for domestic substitution. We believe that China's hemodialysis industry is expected to maintain steady growth based on the growing number of hemodialysis patients, the improvement of patients' payment ability, the technological progress of hemodialysis products and the strong support of national policies. The company has arranged hemodialysis products in the whole industrial chain and acquired Suzhou Junkang to expand production capacity. The number of innovation patents of the company is at the forefront of the industry, and has mastered the core technology of hemodialysis related products, which is expected to benefit from the wave of domestic substitution.
The company is a leading enterprise of monitoring equipment in China, and there is still much room for growth. According to the prediction of Qunzhi consulting, the global monitor market scale has steadily increased from US $2.68 billion in 2016 to US $2.94 billion in 2019 (CAGR from 2016 to 19 is 3.1%). The covid-19 epidemic spread, resulting in the growth of monitor demand. The global market scale will reach US $3.3 billion in 2020. It is expected that with the promotion of epidemic prevention and control and vaccination, the demand for medical equipment will return to the original stable growth level. China's monitor market increased from US $330 million in 2016 to US $420 million in 2019 (CAGR from 2016 to 19 was 8.4%), and is expected to reach US $640 million in 2023. The company has three monitoring series products: Handheld monitor, integrated monitor and plug-in monitor, and the models of each series of products are diverse. Taking the opportunity of the epidemic situation, the company's monitor series products have accelerated to go overseas; At the same time, catalyzed by China's new medical infrastructure policy, the company's products in the field of life and health monitoring, such as monitors, are expected to increase in market demand and accelerate growth as basic equipment in hospital wards.
Profit forecast, valuation and rating: we predict that the company's net profit attributable to the parent company from 2022 to 2024 will be 86 / 114 / 157 million yuan and EPS will be 0.49/0.65/0.90 yuan respectively. The current price corresponding to PE is 30 / 23 / 17 times respectively. We give the company a target price of 18.10 yuan, which is covered for the first time and given a "buy" rating.
Risk warning: intensified competition; The price reduction of centralized purchase exceeds the expectation; Capacity expansion and digestion were not as expected.
