Incidents:
On April 20, 2022, the company disclosed its 2021 annual report. The company achieved operating income of 3,097 million yuan for the full year of 2021, an increase of 17.07% over the previous year, net profit attributable to shareholders of listed companies was 291 million yuan, an increase of 43.71% over the previous year, and net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was 257 million yuan, an increase of 39.23% over the previous year. Basic earnings per share were $0.66 per share.
Incident reviews
The high growth rate of overseas markets (+24.91%) increased the company's overall performance by sales area. The company achieved revenue of about 1,042 billion yuan in the overseas market in 2021, an increase of about 24.91% over the previous year, and the domestic market achieved revenue of about 2,045 billion yuan, an increase of about 13.39% over the previous year.
On the one hand, the company strengthened product project cooperation with well-known foreign companies, accelerated the development and upgrading of product pipelines, and promoted the optimization of new product structures in foreign markets. Products such as disposable safe injection needles, disposable safe syringes, etc., have completed 510K registration and submission. On the other hand, the transformation of the company's international market business model has led to continued growth in business orders. The company's gross margin level in overseas markets reached 37.59% in 2021, continuing the upward trend.
Benefiting from demand for vaccination, injector products increased dramatically (49.93%) by product. Looking at products, the company's syringe products reached 818 million yuan in 2021, an increase of 49.93% over the previous year, accounting for about 26.43% of the company's total revenue. The sharp increase was mainly due to the continuing impact of the epidemic and the rapid increase in demand in the vaccination market. The company's syringe product sales increased by about 70% over the same period last year. In addition, the company's interventional products achieved revenue of about 455 million yuan, an increase of about 51.40% over the previous year, which also contributed greatly to the company's revenue growth.
Adhering to the diversified layout strategy, strengthening the expansion company in medical aesthetics, active devices and other categories will continue to further promote investment and construction in diversified medical industries in the future. Through industrial outreach investment, the medical and aesthetic industry, the active device+passive consumables industry, and the specimen collection industry will be developed, strengthen industrial investment and development, build on the main business, adjust and optimize the company's industrial structure, and enhance the company's ability to withstand market and policy risks.
In the future, the company will consolidate industrial development in the fields of medical puncture basic consumables, basic consumables for medical infusion devices, and special medical devices, further strengthen the operation and construction of diversified medical industries, strengthen the return on investment in the interventional device industry and the management and operation goals of investment enterprises, give full play to the role of listed companies as capital platforms, build the foundation of the company's stable industrial structure and economic structure, achieve compound annual growth goals and market value management goals, and enhance the company's overall competitiveness.
Investment advice
We expect the company's revenue to reach 3.790 billion yuan, 4,509 million yuan and 5.371 billion yuan respectively in 2022-2024, with year-on-year increases of about 22.4%, 19.0% and 19.1% respectively. Considering the gradual increase in the share of the company's high gross margin products, the company's overall gross margin and net interest rate levels will also increase year by year. We expect the company's net profit to be 388 million yuan, 484 million yuan and 600 million yuan respectively in 2022-2024, with year-on-year increases of about 33.1%, 24.9% and 24.0% respectively. The EPS for 2022-2024 was 0.83 yuan, 1.04 yuan, and 1.29 yuan, respectively, and the corresponding PE valuations were 20x, 16x, and 13x, respectively. In view of the continuous upgrading of the company's products, the overseas market is expanding smoothly, the domestic market is stable, and the “buy” rating is maintained.
Risk warning
industry policy risks;
Product development risks;
Risk of rising commodity prices.
