\u3000\u3000 Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) (300760)
Key investment points
Event: the company issued the employee stock ownership plan for 2022, which plans to grant about 3.05 million shares to no more than 2700 core employees and technical backbones, accounting for 0.25% of the total share capital, with the grant price of 50 yuan / share, and the source of shares is A-share common shares repurchased by the company’s special repurchase account.
The incentive assessment conditions are strict, highlighting the company’s confidence in the future: the corresponding assessment year of the incentive plan is 2022-2024, and the company level performance assessment target is based on the net profit attributable to the parent in 2021. The growth rate of net profit attributable to the parent in 2022-2024 is not less than 20%, 44% and 73% respectively, and the three-year compound growth rate is 20%, Considering the dilution of share based payment on performance, we believe that the assessment objective fully demonstrates the company’s confidence in future performance. The employee stock ownership plan will motivate relevant employees at a low incentive cost, which can really improve the work enthusiasm of employees, effectively unify the interests of core employees and technical backbone with the company and its shareholders, so as to promote the realization of the overall goal of the company.
Favorable policies for import substitution and key breakthroughs in overseas markets: the epidemic situation in 2020 reflects the lack of medical emergency response capacity of countries around the world. In May 2020, the national development and Reform Commission and other three departments jointly issued policies and plans such as the construction plan for public health prevention, control and treatment capacity, In December 2021, the Ministry of industry and information technology and other ten departments jointly issued the “14th five year plan” for the development of medical equipment industry, focusing on seven areas such as monitoring and life support equipment. Relying on the service platform, sales channels and the company’s complete product line built in the past, the company is expected to take the east wind of policy and accelerate the pace of import substitution. At the same time, during the epidemic, the company has obtained a large number of orders overseas, accelerating the breakthrough in public markets and high-end customer groups in various countries. Under the background of global economic risks and increasing government financial pressure, the company is expected to further improve its market share with the advantages of cost-effective products.
Actively cultivate emerging businesses and open up long-term growth space: facing the future post epidemic era, focus on cultivating micro invasive surgery, veterinary, AED and other segments. At the same time, actively explore seed businesses such as ultra-high-end color Doppler ultrasound, molecular diagnosis and orthopedics. In the field of minimally invasive surgery, new products such as hypixel R1 4K ultra-high definition fluorescent endoscope camera system and hard mirror instruments have been approved. The company is expected to achieve rapid growth in revenue scale by virtue of the continuous enrichment of product line and the synergy brought by long-term deep cultivation in the operating room; The veterinary business has made full use of the company’s technical reserves and product layout in the three fields, and has launched products such as veterinary anesthesia machine, veterinary ultrasound and veterinary blood cell analyzer. In the future, the company will continue to improve the layout of veterinary products in the three fields.
Profit forecast and investment rating: considering the pull of new infrastructure and the continuous breakthrough in overseas markets, we raised the EPS forecast from 6.74/8.15/9.79 yuan to 6.75/8.24/10.04 yuan in 2021-2023. The current market value corresponds to 50 times, 41 times and 33 times of PE in 2021-2023 respectively, maintaining the “buy” rating.
Risk warning: the R & D of new products is not as expected; The global covid-19 epidemic situation is repeated; The implementation of volume procurement exceeded expectations, etc
