\u3000\u3000 Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) (300760)
Event: on January 19, 2022, the company issued the draft of the employee stock ownership plan. It plans to buy back a total of 3.0487 million shares of RMB 1 billion previously for the employee stock ownership plan, accounting for 0.2508% of the current total share capital of the company. The participants are the company’s core technical or business personnel, not involving the company’s directors, supervisors and senior managers. The total number of participants does not exceed 2700, and the subscription price of employees is 50 yuan / share.
In the past 22 years, the growth rate of net profit from the return of incentive fees to the parent company may reach 24%, and the performance continues to maintain a high growth momentum. The assessment objective of the employee stock ownership plan is that the growth rate of the net profit attributable to the parent company from 2022 to 2024 is not less than 20%, 44% and 73% compared with that in 2021, that is, to maintain an annual growth rate of 20%; The share based payment expenses to be amortized from 2022 to 2025 are expected to be divided into 387 million, 306 million, 140 million and 36 million yuan. If excluding the share based payment expenses to be amortized, the actual growth rate of net profit from 2022 to 2024 is expected to reach 24%, 23% and 21%, showing a strong speed and sufficient growth confidence of the company.
It covers 2700 core technical and business personnel to fully stimulate the enthusiasm of employees. The incentive plan is intended to cover no more than 2700 employees, all of whom are the core employees and technical backbone of the company. It is the mainstay to promote the vigorous development of the company’s business lines, and does not involve the company’s directors, supervisors and senior managers, which shows that the company attaches great importance to talent construction; At the same time, the plan covers a wide range, and the subscription price is 50 yuan / share, which is only 15% of the current closing price (the closing price of the company as of January 19 is 335.22 yuan), which can more fully stimulate the potential and organizational activity of employees, deeply bind the development of the company with the personal interests of employees, and help the medium and long-term sustainable development of the company.
The new medical infrastructure + the “thousand counties project” has brought 30 billion business opportunities, and the company, as an industry leader, has benefited the most. In recent years, relevant central and local departments have repeatedly issued documents to increase investment in new medical infrastructure, of which Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) can reach 20 billion yuan of new medical infrastructure business opportunities. The work plan for improving the comprehensive capacity of county hospitals under the “thousand county project” issued by the National Health Commission also clearly proposes to promote the sinking of medical resources and make up for the shortcomings of medical services and management capacity of county hospitals, From the perspective of Mindray’s accessible market, the business opportunities brought by the “thousand county project” in the next few years are expected to reach 10 billion yuan. The company is a leading brand in the field of domestic medical devices. Its industry-leading product strength, comprehensive and rich hospital level overall solutions and “SanRui” ecosystem can better meet the construction needs of new medical infrastructure and better support the construction and promotion of smart hospitals. With the continuous expansion of the duration and implementation scope of new medical infrastructure in China, The relevant production lines of the company are expected to continue to benefit and achieve rapid development.
Profit forecast and investment suggestions: according to the company’s announcement, we fine tuned the profit forecast. It is estimated that the company’s revenue from 2021 to 2023 will be RMB 25.653 billion, 31.441 billion and 37.761 billion (RMB 25.670 billion, 31.050 billion and 37.392 billion before adjustment), with a year-on-year increase of 22.01%, 22.56% and 20.10%, and the net profit attributable to the parent company will be RMB 8.164, 97.99 and 11.877 billion (RMB 8.199, 10.80 and 12.268 billion before adjustment), with a year-on-year increase of 22.62% and 20.04% 21.20%, corresponding EPS is 6.72, 8.06 and 9.77. Considering that the company is a leading enterprise of medical devices in China, its business at home and abroad is expected to maintain a high growth trend and maintain the “buy” rating.
Risk warning events: risk of new product R & D, risk of policy change, risk of intensified industry competition, risk that sales growth is less than expected, risk that the public information used in the research report may lag behind or not be updated in time, etc.
