Event
On August 25, 2022, the company disclosed that 2022H1 achieved an operating income of 1.64 billion yuan, an increase of 15.32% over the same period last year, and a net profit of 175 million yuan, an increase of 37.94% over the same period last year. Of this total, 2022Q2 achieved an operating income of 772 million yuan, an increase of 3.17% over the same period last year, and a net profit of 104 million yuan, an increase of 27.99% over the same period last year.
Event comment
Affected by the epidemic in eastern China, 22Q2 is under pressure on the revenue side, while the profit side is still outstanding. 2022Q2's operating income reached 772 million yuan, an increase of 3.17% over the same period last year and a decrease of 10.96% compared with 2022Q1. Among them, the subsidiary Kandelai Medical equipment was not included in the scope of the statement on May 31, affecting the consolidated income of one month. In the first half of 2022, the income of Kandelai Medical equipment reached 225 million yuan. If the consolidated statement of June income of Kandelai Medical equipment is considered, it is estimated that the growth rate of the revenue end of the simulated consolidated statement is about 10%. In addition to the impact of the consolidated scope, since March 2022, the outbreak in Shanghai has affected production and logistics, as well as the use of outpatient consumables, and the company's overall revenue growth has not continued the high growth of 2022Q1.
The gross profit margin of 2022Q2 is 34.78%, which is higher than that of Q1. 2022Q2 achieved a net profit of 104 million, an increase of 28% over the same period last year, deducting 108 million non-net profit and an increase of 50.2% over the same period last year. Company Q2 actively controlled various expenses and achieved an overall expense rate of 18.8%, which was lower than that of Q1 by 2.2pct, but still attached great importance to R & D investment. The R & D expenditure rate reached 4.5%, which improved 0.3pct compared with Q1, and the overall performance of the company's Q2 profit end was more outstanding.
Specimen collection makes up for the decline in outpatient income, the growth of income at home and abroad remains balanced, and investment in diversified industries continues to deepen.
In the first half of 2022, the income of specimen collection, puncture nursing and puncture intervention were 190 million yuan, 942 million yuan and 154 million yuan respectively. The medical and beauty sector also began to contribute income, contributing 23 million yuan in the first half of the year. In addition, the income of 2022H1's domestic business is 1.268 billion yuan (+ 15.75%) and that of foreign business is 371 million yuan (+ 13.87%). The company covers the whole country in the domestic market, has a large number of third-class first-class hospital customers in Beijing, Shanghai and Guangzhou, and has formed a long-term and stable project development and supply and marketing cooperation relationship with European and American circulation giants in the international market.
Increased investment in R & D, continued to increase product categories, optimistic about the second half of the year new categories listed in the first half of 2022, the company's R & D expenses of about 71 million yuan, accounting for 4.33% of the income. In the first half of the year, the company focused on the development of safety needle series, needle-free medicine series, medical beauty series, specimen collection series, specialist syringe, blood collection test series, insulin needle series, medicine package series and other products. upgrade and iteration of biopsy needle, washing needle, dental needle, safety indwelling needle, blood collection needle and other products. Disposable pump syringes, new infusion needle type safety indwelling needles, automatic biopsy needles and other products have completed clinical trials and submitted registration application materials; disposable visible blood collection needles have completed evaluation; disposable injection pen needles have obtained registration certificate. In the field of medicine and beauty, the continuous listing of the company's ultra-fine injection needles, hair follicle transplantation devices, multi-head water light needles and high-end puncture needles, pneumoperitoneum needles and other puncture intervention products will provide effective support for the company's sustainable development.
Investment suggestion
We keep the company's profit forecast unchanged, and it is expected that the company's revenue from 2022 to 2024 is expected to reach 3.79 billion yuan, 4.509 billion yuan and 5.371 billion yuan respectively, an increase of 22.4%, 19.0% and 19.1% respectively over the same period last year. Considering the gradual increase in the proportion of the company's high gross profit margin products, the company's overall gross profit margin and net profit margin will also increase year by year. We estimate that the company's net profit from 2022 to 2024 will be 388 million yuan, 484 million yuan and 600 million yuan respectively, an increase of about 33.1%, 24.9% and 24.0% respectively over the same period last year. The EPS from 2022 to 2024 is 0.83,1.04 and 1.29 yuan respectively, and the corresponding PE estimates are 20x, 16x and 13x, respectively. In view of the continuous upgrading of the company's products, smooth expansion of overseas markets and solid domestic basic market, the "buy" rating is maintained.
Risk hint
Industry policy risk
Product research and development risk
The risk of rising prices of bulk raw materials.
