Events:
Recently, the company released its semi-annual report of 2021, with operating income of 495 million yuan in the first half of 2021, down 1.63% from the same period last year; net profit of 83 million yuan, down 20.90% from the same period last year; and net profit of 73 million yuan after deducting non-return, a decrease of 26.60% over the same period last year. As the epidemic prevention and control entered the normal stage, the company's product sales in the first half of the year dropped sharply compared with the same period last year. Q2 achieved an operating income of 255 million yuan in a single quarter, an increase of 0.79% over the same period last year, and a net profit of 34 million yuan, a decrease of 37.22% over the same period last year.
Comments:
The market demand for mobile DR and DR returned to normal, benefiting for a long time from the fact that the company realized 495 million yuan in revenue in the first half of the year, down 1.63% from the same period last year; the net profit from home was 83 million yuan, down 20.90% from the same period last year; the main reason for the decrease in operating income and net profit from the same period last year was that the sales volume of mobile DR decreased significantly compared with the same period last year. Mobile DR and DR, as key equipment in hospitals, showed rapid growth in the overall market at the initial stage of epidemic prevention and control. As COVID-19 's epidemic prevention and control entered a normal stage, the market demand for mobile DR and DR also returned to normal, resulting in a decrease in the company's mobile DR and DR sales compared with the same period last year. In the long run, under the favorable policy of vigorously promoting the construction of infectious disease hospitals and ICU, the company is expected to gain a large market share by virtue of the excellent performance and word-of-mouth of DR products. At the same time, the epidemic continues to spread overseas, and the company's DR product exports are expected to continue to contribute to revenue.
Actively adjust the sales structure, increase the sales of DSA, CT and other products
In the case of the normalization of the epidemic, the company actively adjusts the sales structure of its products. In the first half of the year, DSA products increased significantly compared with the same period last year. Sales of superconducting MRI increased by more than 50%, and sales of high-end DR and CT increased by nearly 100%, making up for the decline in revenue brought about by the decline in sales of mobile DR and DR.
Pay attention to the development of the high-end market, and beauty helps expand the territory.
The company began to pilot the transformation from sales to high-end users in 2015, and now most parts of the country have completed the transformation, and the prospect is clear. The company's DR products use "Baiwei" flat panel detector to improve image clarity by more than 30%, providing doctors with more clear image support, and fully automatic suspension design to meet the shooting of patients in any position. In May 2021, the company's controlling shareholder was changed to Midea Co., Ltd., combing the future strategic development direction of the company, making a more accurate market planning and market positioning, as well as more professional strategic management, marketing management, product research and development management, making the company more targeted in product research and development, and more strategic territory expansion.
Profit Forecast and Investment rating
The industry will be greatly affected by the epidemic in 2020. we adjust our original forecast and estimate that the company's operating income in 2021-2023 will be 1.707 billion yuan (the previous value is 1.503 (2021E) / 1.733 (2022E) billion), and the net profit in 2021-2023 will be 1.9022200,000 yuan (the previous value is 324,000,000,000 yuan / 379 (2022E) million yuan), corresponding to the PE of 54-46-40. Maintain a "buy" rating.
Risk tips: product research and development is not as expected; the impact of the epidemic on procurement recovery is not as expected; market competition is higher than expected.
