Performance summary: the company achieved revenue of 1.26 billion yuan in 2019, an increase of 22.2% over the same period last year, and net profit of 300 million yuan, an increase of 44.9% over the same period last year. The non-return net profit was 300 million yuan, an increase of 99.3% over the same period last year. 2020Q1 realized revenue of 300 million yuan, down 0.1% from the same period last year, and its net profit was 130 million yuan, an increase of 81.8% over the same period last year.
The non-return net profit was 90 million yuan, an increase of 21.6% over the same period last year.
In 2019, the volume of new active ingredients led to an increase in gross profit, and 2020Q1 revenue remained stable: during the 2019 reporting period, the company's core product sales contributed 800 million yuan, up 46.8% from the same period last year, and sales increased by 47.7% over the same period last year. Imdo's revenue was 270 million yuan, up 15% from the same period last year. During the reporting period, the overall gross profit margin was 83.6%, an increase of 3.63pp over the same period last year, due to the increase in sales of new active elements of high gross margin products, and the sales expense rate was 49.6%, an increase of 2.48pp over the same period last year, which was caused by the growth of the company's new active elements sales. 2020Q1 revenue was the same as the same period last year, and the return net profit increased rapidly, mainly due to the receipt of 48 million yuan in industrial poverty alleviation funds during the reporting period. After deducting this effect, the non-return net profit increased by 21.6% over the same period last year.
The new activin continued to release, and successfully entered the 2019 Medicare catalogue. In 2019, sales of new activist were 1.75 million, an increase of 47.7% over the same period last year. Since entering the 2017 health insurance catalogue, the volume effect was significant, with a compound growth rate of 67.8% from 2016 to 2019. In November 2019, Xinhuo successfully entered the new health insurance catalogue, with a price reduction of 23.9%. Continuous volume is expected, and 2020Q1 revenue has not been significantly affected. The company's new active element patent starts and ends from December 30, 2011 to December 29, 2031, with high technical barriers and long-term competitiveness. The promotion fee for the new active element is reasonable. It is expected that with the easing of the domestic epidemic, the sales of new active elements will maintain rapid growth.
The company invests in the field of cardiovascular implant devices. The company plans to invest 70 million yuan in Beijing Amet, with a shareholding ratio of 9.86%. Beijing Amat is engaged in the research and development of cardiovascular intervention products and has the world's leading patent technology for precision and rapid printing of 3D4 axes. There are currently four projects under research, including stent positioning systems, of which two are in clinical trials, one is in clinical application, and the other is in development stage. After the investment, the company will get the exclusive right to sell and promote the above four products in the Chinese market. The company has accumulated in the cardiovascular field for many years, and the successful listing of Amet products in the future will enrich the growth point of the company's performance.
Profit forecast and investment advice. It is estimated that the EPS from 2020 to 2022 will be 1.63,2.02 and 2.43 yuan respectively, and the net profit of homing will increase by about 25% in the next three years. Considering the volume effect of the new activin after entering the new health insurance and the layout of the company in the field of cardiovascular implantation, we give the company 21 times PE in 2020, corresponding to the target price of 34.23 yuan. Cover for the first time, giving a "buy" rating.
Risk hint: sales of new active elements fall short of expectations; sales of Imdo fall short of expectations.
