Events:
On October 27, 2022, the company released its third quarterly report of 2022. In the first three quarters of 2022, the company achieved operating income of 7.762 billion yuan, down 10.11% from the same period last year. The net profit returned to the mother was 1.81 billion yuan, down 5.78% from the same period last year. The non-return net profit was 1.805 billion yuan, down 13.44% from the same period last year.
Comments:
Regular business has maintained growth, and operational efficiency has improved significantly.
In the first three quarters of 2022, the company's operating income was 7.762 billion yuan, down 10.11% from the same period last year. The decrease of operating income is mainly due to the higher income base of COVID-19 epidemic-related antigen detection reagents in 2021.
Excluding the impact of antigen business, regular business revenue increased by 18.45% compared with the same period last year. In the third quarter, the single-quarter gross profit margin was 62.72%, which was higher than the same period last year (0.86pcts). The sales expense rate decreased by 0.92pcts, the management expense rate decreased by 1.56pcts, the financial expense rate decreased by 1.21pcts, and the operating cash flow increased by 236.06%. The main reason is that the company has achieved remarkable results in improving operational efficiency and controlling inventory procurement.
The core business has developed steadily, returning to sustainable and rapid growth driven by R & D and innovation. 1) the medical device section accounts for the largest proportion of the company's operating revenue, with sales revenue of 4.324 billion yuan in the first three quarters of 2022, down 15.73% from the same period last year. Excluding the impact of antigen business, the sector's regular business revenue increased by 42.76% compared with the same period last year. Coronary innovative products achieve a high rate of growth, accounting for 67.17% of the total coronary revenue. Cardiovascular medical device business has gone out of the impact of collection, and the core business has returned to sustainable and rapid growth driven by R & D and innovation.
2) the sales revenue of the pharmaceutical sector was basically flat in the first three quarters of 2022.
3) the medical services and health management section is the company's innovative business. In the first three quarters of 2022, the regular business sales revenue of this sector except products related to COVID-19 epidemic increased by 1.24% compared with the same period last year.
Remarkable achievements have been made in the research and development of core cardiovascular devices, and the innovation ecosystem of medical device research and development has been improved. In the first three quarters of 2022, the company's R & D expenditure rate was 8.65%, an increase of 1.65pcts compared with the same period last year. The company's core cardiovascular equipment research and development has achieved remarkable results. The peripheral cutting balloon has been approved to go on the market, greatly enriching the peripheral product line. Coronary sonic balloon to complete the clinical, apply for registration. The company has made substantial progress in the business exploration of ophthalmic medical devices, medical medical devices and endoscopic medical devices. The core R & D products are expected to be listed in succession from 2023 to 2026, and the company's medical device R & D and innovation ecosystem is constantly improving.
Profit forecast: we estimate that the company's operating income from 2022 to 2024 will be 99.94max 115.86max 137.20 (the previous value is 121.90 (2022E) / 139.84 (2023E), respectively. The adjustment system is after the collection, the company's operation has been optimized and adjusted) 100 million yuan, and the return net profit is 21.42kg 24.77max 29.58 (the previous value is 29.15 (2022E) / 35.17 (2023E) respectively. The adjustment is due to the change in net profit caused by the adjustment of revenue forecast) 100 million yuan, maintaining the "buy" rating.
Risk hints: the risk of price reduction brought about by collective mining, the risk that product research and development is not as expected, and the risk of entering new areas.