occurrences
On March 30, 2023, the company released its 2022 annual report. It achieved operating income of 2,491 million yuan in 2022, a decrease of 6.88% over the previous year, and net profit of 890 million yuan, a decrease of 25.67% over the previous year, after deducting net profit of 822 million yuan from non-Gimo, a decrease of 27.65% over the previous year. The fourth quarter achieved revenue of 466 million yuan in a single quarter, a year-on-year decrease of 47.88%, a year-on-year decrease of 16.89 million, a year-on-year decrease of 95.18%, and net profit of non-return mothers of 3.1 million yuan, a year-on-year decrease of 99.03%.
reviews
Liver and kidney performance in the fourth quarter was affected by the epidemic. The performance in the field of blood purification and critical care was impressive. In 2022, the company's sales revenue for liver and kidney related products declined markedly compared to the same period in 2021. Sales of critically ill care-related products achieved good performance1) The main product, hemoperfusion devices, had revenue of 2,025 million yuan in 2022, a decrease of 12.6%. The main reason was the decline in domestic and foreign demand due to the pandemic and sales falling short of expectations in the second half of the year. 2) Blood purification equipment achieved sales revenue of 198 million in 2022, an increase of 163.18% over the previous year. In the first quarter of 2023, the Beijing procurement company purchased nearly 300 DX-10 devices. It is expected that blood purification equipment will open up a greater development situation in the future. 3) The sales revenue of the company's bilirubin adsorber products in 2022 was 115 million yuan, a year-on-year decrease of 26.2%. This is due to the impact of the epidemic on routine medical treatment. Revenue is expected to return to growth in 2023 after returning to hospital admissions.
The R&D expense ratio continued to increase to optimize production capacity, and the sales expense ratio increased to expand the market. In 2022, the company's gross profit margin was 82.34%, a decrease of 2.64%. The sales expense ratio was 28.12%, an increase of 5.75% over the previous year, mainly due to the sales side's combined academic promotion efforts. The management cost rate was 5.54%, a slight increase of 0.64% over the previous year; the R&D cost rate in 2022 reached 10.19, an increase of 3.69 percentage points over the previous year, mainly due to the company's continuous increase in R&D investment. For example, the main building of the Jianfan Science Building invested by the company has now been renovated. In terms of new product development, in 2022, the company added 5 new product registration certificates and 1 new product CE certificate, which enriched the company's entire blood purification industry chain.
Promote the “Striver One” employee stock ownership plan to enhance cohesion and promote healthy development.
In 2023, the company released “Striver One”, an employee stock ownership plan. The plan plans to raise no more than 150 million dollars for the shareholding plan through a 1:1 ratio between employees' own funds and the company's incentive fund.
The performance evaluation indicators are: 1) The cumulative net profit for 2023-2025 reached 3.6 billion yuan; 2) the cumulative net profit for 2023-2027 reached 7 billion yuan. This shareholding plan will help improve the level of corporate governance of the company, rationally allocate short, medium and long-term incentive resources, and promote the company's sustainable and healthy development.
Profit forecast: The company's revenue for 2023-2025 is estimated to be 28.30/34.86/4.378 billion yuan respectively (the value before 2023/2024 was 40.86/5.311 billion yuan). The reason for the reduction was the impact of the recovery of the epidemic on the main business and the reference to employee stock ownership plan indicators. The net profit of the mother was 1,184/15.77/1,986 billion yuan (previous value was 1,722/2,271 billion yuan), maintaining the “buy” rating.
Risk warning: product market risk, industry competition risk, technology update iteration risk, product quality control risk, policy change risk