The real estate business has been realized in 21 years, and the medical and beauty business has been continuously promoted.
The 21-year revenue of 1.539 billion yuan / yoy-22.58%, net profit loss of 253 million yuan, the disposal of shares of real estate subsidiaries brought non-current assets disposal profit and loss of 613 million yuan, deducting non-return net profit loss of 672 million yuan, dragged down by the epidemic and chemical fiber interest rate decreased significantly, lower than the performance forecast (return net profit loss of 250-300 million yuan) 22Q1's revenue is 312 million yuan / yoy-48.56%, 's net profit is 38.78 million yuan. In the past 21 years, the company has spun off its real estate business and expanded its medical and beauty business by extension / cooperation. Epidemic situation / raw material cost / etc. drag down the performance for 21 years, and continuously track the progress of medical and beauty industry chain integration and performance realization. Considering the climbing rhythm of recurrent epidemic situation / new production line, the EPS in 22-23 years was lowered (the previous value was 0.34 yuan 0.45 yuan), and the 24-year forecast was introduced, and the EPS0.16/0.20/0.25 in 22-24 years was estimated. Give the medical and beauty business 6.4 billion market value (22e net profit 112 million yuan, 57 times PE); traditional chemical fiber 108 million market value (1202 million net profit, 9 times PE), target market value 6.5 billion yuan, target price 8.30 yuan (previous value 15.74 yuan), maintain overweight rating.
The medical and beauty service business is successful in the triangulation of directors and the expansion of light medical beauty.
In 2001, the income of medical services was 430 million yuan, accounting for 27.97% of the revenue. Hangzhou Liantianmei subsidiary had a 21-year revenue of 411 million yuan (including Liantianmei and Victoria Hospital) with a net profit of 55.87 million yuan. In order to create a "light medical beauty" business template and enrich the industrial ecology, H2 acquired Guangdong Aurora again in 2021, and its two medical and beauty institutions cover projects ranging from basic skin care projects in life beauty to high-end photovoltaic anti-aging, injection filling and wrinkle removal. The company aims to build a "1x N" model ("1": 5A-level medical and beauty hospitals represented by Lian Tianmei; "N": light medical and beauty chain brands represented by Aurora), the medical and beauty service business has the potential for sustainable development and upgrading.
The implementation of real estate business in 21 years, medical materials and medical science and technology business actively promote 1) real estate: 21H2 completed the transfer of 100% equity in Jinghan Real Estate / 100% equity in Beijing Yangjia and 35% equity in Penglai pension. 2) Medical and aesthetic materials: actively create the base of Lessel mask at the end of medical and aesthetic raw materials and the base of tube-grade cellulose film. In 21, the Lessel project was officially put into production (40,000 tons in the first phase), and the rate of excellent and good products in the automatic production line reached 100%. The product can be used for high-end mask cloth. Hubei Jinhuan continues to improve the quality of medical and beauty base material green fiber products, and has become a leading cosmetics OEM enterprise supplier; in cooperation with Shaoxing Chunming Natural Cellulose Film Company, it will invest in the construction of high-end medical and beauty tube-grade cellulose film production line. 3) Medical science and technology: continue to promote collagen / fullerene and other medical products and laser radio frequency instruments, and expand industrial resources in the fields of efficacy ingredients / drug-loaded microneedles / targeted facial masks / medical and aesthetic equipment.
The gross profit margin of chemical fiber business declined in 21 years, and the gross profit margin of chemical fiber business increased in 21 years. The gross profit margin of chemical fiber business 3.42%/yoy-0.18pct, management expense rate 19.91%/yoy8.43pct and sales expense rate 8.85%/yoy5.93pct were important drag on profitability.
Risk hints: the progress of integration and performance cashing in the medical and American sector is slow; the epidemic repeatedly drags down profits; the performance continues to decline / cash flow deteriorates; the traditional chemical fiber business is under pressure / the production capacity of the new production line is slow and expensive; the valuation of the medical and American sector is adjusted back; changes in the senior management team / control / ownership structure / governance structure.