2022H1 outstanding performance, in line with the high growth expectations, maintain the "buy" rating on August 24, 2022, the company released the semi-annual report of 2022: 2022H1 achieved revenue of 274 million (+ 36.98%); return to the mother net profit of 99.6676 million yuan (+ 62.64%); deducted non-net profit of 90.942 million yuan (+ 59.06%), cash flow of operating activities of 104 million (+ 34.16%), the company's profit end growth is more significant. On a quarterly basis, 2022Q1 revenue increased by 39.46%, net profit from home increased by 6.40%, revenue from 2022Q2 increased by 34.41%, and net profit from home increased by 148.11%. In terms of products, revenue from syringes increased by 85.97% over the same period last year, and revenue from puncture needles increased by 66.55% compared with the same period last year. The company's overall performance release rhythm is steady, the risk of business collection is small, while the decline in freight rates and other factors further highlight the cost advantage of domestic low-consumption products. We maintain our profit forecast for 2022-2024. It is estimated that the 2022-2024 net profit will be 1.91 shock 283pm 398 million yuan, EPS 2.03pm 3.01pm 4.23 yuan respectively, and the current stock price corresponding to PE is 37.8pm 25.5pm 18.1 times. Maintain "buy"
Rating.
Demand side: the market space of injection puncture track is growing steadily, and the demand potential of customers at home and abroad is great. According to Grand View Research data, the scale of the global injection puncture market has increased steadily, with an CAGR of 8.5%. It is expected that it will reach US $25.7 billion in 2026. The company's foreign customer income accounts for more than 90%, of which Neogen, ThermoFisher and other customer demand growth is stable. Medline, Mckesson, GBUK, CardinalHealth and other customer medical high-potential products have been gradually verified by production, and the demand is expected to grow at a high speed; the domestic market mainly meets the large demand for medical, veterinary vaccines and insulin injections, and the company is speeding up the pace of domestic product registration from 2022. The company has crossed industry barriers in customer stickiness, production process, patent protection, clean workshop, capital investment and so on.
Medical + veterinary + laboratory consumables troika, technology + category + production capacity pull performance high growth medical products core drive performance high growth, veterinary products and laboratory consumables maintain steady growth. The company has formed a strong technical competitiveness in product design, material development, processing technology, patent protection, etc. At present, it has conventional products such as aseptic syringes and nutrition feeding syringes, as well as a number of high value-added products such as safe insulin syringes and safe blood collection / infusion needles. At the same time, it is constantly speeding up the research and development of new products and expanding cooperation with customers. The company has a production workshop of more than 68000 square meters, and the construction project of 920 million medical injection puncture equipment industrial park in the second phase of Huashi Town is expected to be put into production in 2023, and the release of production capacity is expected to drive rapid growth.
Risk tips: new product sales are not as expected, loss of major customers, trade disputes, exchange risk.