Main points of investment
Event: 1) the company released the annual report of 2021, with annual income of 320 million yuan (+ 19.9%), net profit of 64.48 million yuan (+ 9.2%), net profit of 58.01 million yuan (+ 4.3%) and net operating cash flow of 84.89 million yuan (+ 21.1%). 2) the company released its quarterly report for 2022, with 22Q1 income of 52 million yuan (+ 10.9%), net profit of 2.4 million yuan (- 74.6%), net profit of 1.49 million yuan (- 76.9%) and net operating cash flow of-24.3 million yuan (- 253.5%).
The 2021 results were in line with expectations, and 22Q1's increased cost investment led to short-term pressure on profits. 1) from a quarterly point of view, 2021Q4's quarterly income is 120 million yuan (+ 23.6%), and the quarterly net profit is 25.2 million yuan (+ 255.1%). 2) in terms of profitability, the gross profit margin in 2021 is 50.1% (- 2.9pp), which is mainly due to the higher gross profit margin of mask machine income in 2020, while the four rate of non-mask machine income in 2021 is 30.7% (+ 7.1pp), mainly due to the increase in management expense rate, R & D expense rate and financial expense rate, resulting in a net profit rate of 20.4% (- 2pp). The main reason for the decline of Q1 profit in 2022 is that the company has more incentive amortization, patent expenses and R & D investment, which leads to the increase of management expense rate and R & D expense rate.
The safe infusion business will grow rapidly in 2021. In 2021, the income of safe infusion machine is 130 million yuan (+ 221.4%), the gross profit margin is 52.7% (+ 11.9pp), the income of safe infusion line machine is 130 million yuan (+ 86.8%), and the gross profit margin is 46.1% (- 0.1pp). The high growth of safe infusion business income is mainly due to the strong demand for COVID-19 vaccine syringes downstream, which leads to the increase of upstream equipment demand. The single machine income of 2022Q1 blood purification is 1.44 million yuan (- 24.6%), and the income of blood purification connection machine is 1.69 million yuan (- 94.3%), which is expected to return to high growth in 2022. The company has become an important supplier of upstream intelligent equipment for domestic safety infusion and blood purification consumables, with a total market space of about 3 billion yuan. With cost-effective and technological advantages, the company is expected to continue to grow.
R & D layout of potential business, pre-filling and insulin pen smart equipment is expected to provide new growth points. The barrier of medical consumable intelligent equipment industry is relatively high, which is mainly reflected in "compound discipline technical background + non-standard products + rapid technology change". The company attaches great importance to research and development, spending 38.46 million yuan (+ 46.6%) on R & D in 2021, accounting for 12.2% of receivables. At present, it has reserved intelligent equipment for consumables such as medicine and equipment combination (pre-filling and insulin pen), orthopaedics, IVD and so on. In strategic cooperation with Weigao Group, the company holds a 51% stake in Vega Automation, and is expected to be deeply bound to become a supplier of intelligent equipment for consumables. At the same time, it is expected that the pre-filling production line is expected to sell to Weigao in 2022 and contribute to the increment. Become the first domestic company to provide pre-filling syringe intelligent equipment.
Profit forecast and investment advice. Without considering the incremental contribution of new business, the net profit from 2022 to 2024 is expected to be 0.8,1 and 130 million yuan respectively. The company is the leader of domestic medical consumables, the existing business is growing steadily, the volume of incremental business is just around the corner, and the "buy" rating is maintained.
Risk tips: the order is not as expected, the volatility risk of the investment cycle of the equipment industry.