The company released the annual report of 2021 and the quarterly report of 2022, and the net profit of returning home increased rapidly. In 2021, the company realized operating income of 3.097 billion yuan (year-on-year + 17.07%), net profit of 291 million yuan (+ 43.71%), and non-return net profit of 257 million yuan (+ 39.23%). In a single quarter, Q4 achieved sales revenue of 883 million yuan (year-on-year + 26.72%), net profit of 78.55 million yuan (+ 54.83%), and non-return net profit of 55.42 million yuan (+ 23.75%). In 22 years, Q1 realized operating income of 867 million yuan (year-on-year + 28.81%), net profit of 70.89 million yuan (+ 55.67%) and net profit of 62.46 million yuan (+ 39.99%). The company continues to promote product upgrading, the profit side to achieve rapid growth, in line with expectations.
Major products such as finished needles and syringes have achieved rapid growth. In terms of categories, the sales revenue of the company's main products needle series in 21 years was 563 million yuan, an increase of 28.35% over the same period last year, and that of syringes was 818 million yuan in 21 years, an increase of 49.93% over the same period last year. The company's indwelling needle and functional infusion devices have been included in the medical consumables collection catalogue, won the bid in many provinces, the market share of related areas continues to increase, at the same time drive the sales of other products of the company, and further improve the product coverage of the company.
New products have been put on the market one after another, and the growth of the medical pipeline is expected. The company's disposable beauty kit was approved and put on the market in 2021, and a number of subsequent medical and beauty equipment products are in the stage of development and registration; products such as disposable safety syringes and disposable safety syringes have been submitted at 510K; at the same time, a number of iterative products, such as safety indwelling needles, safe blood collection needles and matching needles for safe insulin pens, have been listed in succession, which is expected to further improve the company's profitability.
Profit forecast and investment advice. It is expected that the company's performance in 22-24 will be 0.87 yuan per share, 1.11 yuan per share and 1.41 yuan per share respectively, corresponding to PE16.27x/12.73x/10.03x. With reference to the comparable company's valuation, we think it is appropriate to give it a reasonable PE valuation of 25 times for 22 years, corresponding to a reasonable value of 22 yuan per share, and maintain a "buy" rating.
Risk hint. The epidemic continues to lead to risks affecting normal operations, policy risks such as collection, limited development of business models, and intensified competition in the industry.
