The short-term impact of the epidemic does not change the company's core values, and the performance of 2022Q2 has improved significantly, and it is expected to recover further for the whole year. We are optimistic about the value of the company's service platform and the coordinated development of the company's service plate and industrial plate.
Maintain the company's overweight rating.
Support the main points of rating
2022H1's routine business has experienced a short-term decline due to the impact of the epidemic in Shanghai and other regions. With the effective control of the epidemic, 2022Q2's performance has improved significantly, and the company's performance is expected to recover further for the whole year. 2022H1 achieved revenue of 4.761 billion yuan, year-on-year + 12.21%, net profit of 160 million yuan, revenue of 2.592 billion yuan, month-on-month ratio of + 19.54%, year-on-year + 16.63%, net profit of 118 million yuan, month-on-month ratio of + 186.09%, and year-on-year + 3.90%. In terms of business, the revenue of 2022H1 intensive business / regional inspection center business reached 1.196 billion, which was + 0.78% compared with the same period last year. The industrial sector achieved revenue of 211 million yuan,-8.54% compared with the same period last year, invested 58.95 million yuan in R & D expenses, + 14.87% compared with the same period last year, and revenue of the three-party laboratory business reached 608 million yuan, + 289.74% compared with the same period last year.
Profitability has declined in the short term affected by the epidemic, long-term profitability is expected to recover, and the company's long-term growth remains unchanged. 2022H1 has a gross profit margin of 25.18%, year-on-year-1.54pct, and net sales margin of 5.78%, year-on-year-1.68pct. Looking forward to the whole year, with the continued control of the epidemic, the company's business recovery, profitability is expected to gradually recover.
2022H1's sales expense rate slightly increased compared with the same period last year (increasing the input of relevant service personnel), with the rapid progress of various businesses in the second half of the year, the expense rate is expected to gradually decline; the company's management efficiency improves, and the management expense rate decreases year by year and tends to stabilize; the financial expense rate decreases slightly, mainly due to the company's optimization of debt structure and lower financing costs; and the R & D expense rate increases slightly as the company continues to increase investment in R & D of its own products.
The company is a platform company with synchronous layout inside and outside the hospital with low policy risk. at the same time, the industrial sector has broad prospects for self-research and cooperation, and is optimistic about the stable development prospects and core values of the company. As a comprehensive service provider of domestic medical laboratory, the company's intensive service business conforms to the direction of national medical reform policy, and the market share of integrated service business is expected to be further expanded. at present, the number of customers of the company's intensive / regional inspection center has reached 406 (15 new). As a supplement to the intensive business of in-hospital laboratory and regional inspection center, the third-party laboratory business can meet the needs of special inspection projects of some core clients, and at the same time reflect the diversification of business inside and outside the hospital and balance uncertain risks such as epidemic situation. In recent years, the industrial sector has acted frequently in the industrial sector, carried out extensive cooperation, increased investment in R & D of self-produced products, strengthened the synergy between self-produced products and channel platform, and enhanced the overall profitability of the company.
Valuation
We estimate that the company's net return profit from 2022 to 2024 will be RMB 400,000,000. Considering the company's core value is the basis for long-term development, as the epidemic is controlled, the performance is expected to usher in a positive change and maintain the overweight rating.
Main risks faced by rating
The risk of accounts receivable recovery, end-customer development less than expected risk, industrial plate new product research and development less than expected risk, industry policy risk, COVID-19 epidemic uncertainty risk and so on.