Event: the company released its mid-2022 report that its operating income in the first half of the year was 297 million yuan, an increase of 13.68% over the same period last year; its net profit was 76.6562 million yuan, up 8.79% over the same period last year; and its non-net profit was 71.7704 million yuan, an increase of 35.62% over the same period last year.
Q2 accelerated month-on-month growth and is expected to continue to recover in the second half of the year. In the first half of 2022, the company's revenue, return home and deducted non-net profit still grew under the disturbance of the epidemic, with year-on-year growth rates of 13.68%, 8.80% and 35.62% respectively. The company overcame the influence of closed management of the epidemic in Shanghai and scientifically arranged production and logistics. At the same time, strengthen the expansion of sales channels and marketing efforts to further promote the sinking of channels to ensure the steady growth of performance. In a single quarter, Q2 realized revenue of 167 million yuan, an increase of 17.06 percent over the same period last year, and net profit of 43.49 million yuan, an increase of 7.34 percent over the same period last year, deducting 41.22 million yuan of non-net profit, an increase of 37.43 percent over the same period last year. Q2 deducted the growth rate of non-net profit increased by 4.20pp compared with the previous month, and continued to maintain a quarterly growth rate of 30% +, mainly due to the company's enhanced sales expansion and channel sinking, as well as the further appearance of the effect of cost control, which enhanced profitability.
The gross profit margin remained stable, and the decline in the rate of sales expenses led to a reduction in the rates of three expenses. In the first half of 2022, the company's gross profit margin was 90.29%, which was lower than that in 2021. The sales expense rate, management expense rate and financial expense rate were 48. 29% respectively.
0.8%, 4.44%,-1.39%, down 1.60pp, 0.34pp, 0.13pp compared with 2021, gross profit margin remained basically stable, the decline in the three expense rates was mainly due to the decline in sales expense rates.
The cooperation with Medtronic PLC on ultrasonic bone knife products is expected to broaden the scope of cooperation on this basis. In an announcement issued on May 25, 2022, the subsidiary Mu canopy authorized Medtronic PLC to promote, market, sell and distribute all authorized products exclusively in Chinese mainland area, including ultrasonic bone knife equipment FD880A, XD880A and their supporting heads and other consumables. Shuimu canopy has profound original research and development accumulation and core technology in ultrasonic bone knife and ultrasonic hemostatic knife and so on. it is the leader of ultrasonic energy bone dynamic system in the world, and its main products are ultrasonic bone dynamic system and ultrasonic hemostatic knife system. it involves orthopaedics, spinal surgery, neurosurgery, plastic surgery, hand and foot surgery, hepatobiliary surgery and other medical treatment fields. This cooperation will make use of the advantages of Medtronic PLC's intelligent equipment and Shenwai Business Department's professional, mature education system, sales team and channels to further promote the sales and promotion of ultrasonic bone knife products nationwide. Work with Medtronic PLC to enhance the market competitiveness and market share of ultrasonic bone knife products in Chinese mainland area At the same time, it has also established a strategic cooperative relationship with Medtronic PLC, which will stimulate more synergy spillover effects, and the company and Medtronic PLC are expected to seek in-depth cooperation and development in other broader fields in the future.
Profit forecast and investment advice: we expect the company's income from 2022 to 2024 to be 6.86,8.13 and 992 million yuan, an increase of 15.65%, 18.51% and 21.97% over the same period last year, and the net profit of return to the mother was 2.23,2.73 and 335 million yuan, an increase of 19.
88%, 22.10%, 22.89%, corresponding to EPS 0.99,1.21,1.48 yuan. At present, the company's stock price corresponds to 2022-2024 times PE in 24-20-16, considering the good growth of spinal implant consumables track, the company's leading strength in spinal product research and development, outstanding core competitiveness, and is expected to benefit from the process of import substitution and market concentration at the same time, the continuous widening of service boundaries brings continuous enhancement of comprehensive strength and maintains the "buy" rating.
Risk prompt events: policy change risk, product quality and potential liability risk, long-term research and development of trauma products and market development risk not up to expectations, public information lag or untimely update risk, collection price reduction risk exceeding expectations.