Events:
Watt Dain released 2022 results KuaiBao: in 2022, the company achieved revenue of 2.341 billion yuan, yoy of 15.49%; return to the mother net profit of 519 million yuan, yoy of 36.46%. In the fourth quarter, the company realized revenue of 522 million yuan, yoy of 14.87%, net profit of 56.48 million yuan and yoy of-8.27%.
The core subsidiary Dain Pharmaceutical achieved revenue of 2.041 billion yuan in 2022, with yoy of 38.58%, and net profit of 958 million yuan and yoy of 44.5%.
Main points of investment:
2022 the performance is in line with expectations and profitability is further enhanced. In 2022, the core subsidiary Dain Pharmaceutical achieved a revenue of 2.041 billion yuan, a net profit of 958 million yuan and a net interest rate of 46.94%, an increase in 1.90pct compared with 2021 and a marked enhancement of profitability.
Triple factor resonance, optimistic about the development of the company in 2023:
1) the price of Ike's new mainstream specifications is expected to rise in both volume and price. In 2022-7-15, the company raised the price of the mainstream 30 pieces per box of Yike by 6.4%, and spent part of its profits on cooperation with channel terminals to fully release the new terminal sales potential of Ike.
2) it is suitable for the population to expand to 0-6 years old, and there is a broad space for incremental market. Since 2022-1-1, the company has adjusted the age range of Ikexin from 0-3 to 0-6, bringing about 52.97 million new consumers.
3) there is much room for improvement in the new infiltration rate of pink Yike. As of 2022H1, the penetration rate of green Ikexin (0 years old) is more than 30%, but the penetration rate of pink clothes (1-3 years old) is about 10%. Overall, the penetration rate of Ikexin in 0-year-old 6-year-olds is only about 8%. Pink is expected to contribute the main growth driver in the future.
Profit forecast and investment rating: we expect the company's operating income from 2022 to 2024 to be 2.341 billion yuan, 2.936 billion yuan and 3.575 billion yuan, respectively, an increase of 15.49%, 25.40% and 21.79% over the same period last year. The net profit of homing was 520 million yuan, 663 million yuan and 822 million yuan respectively, up 36.70%, 27.54% and 23.94% over the same period last year. In the long run, pink Ikexin is expected to contribute new growth momentum. Maintain a "buy" rating.
Risk tips: Ikexin sales are not as expected; medical policy risks; the epidemic affects the normal operation of drugstores; market competition intensifies; macroeconomic development is not as expected.