Event: 1) the company recently released its 2021 report, with an income of 2.14 billion yuan, a year-on-year increase of + 55.8%, a net profit of 210 million yuan, a year-on-year net profit of-50%, and a non-return net profit of 66.69 million yuan, a year-on-year increase of-81.7%.
2) the company released its quarterly report for 2022, with revenue of 660 million yuan, year-on-year + 32.7%, net profit of 170 million yuan, + 11.1%, and non-return net profit of 180 million yuan, + 27.7% over the same period last year.
Revenue growth was strong in 2021, and profits were affected by the impairment of Imdo's intangible assets. The company's revenue growth in 2021 was strong, mainly driven by sales revenue of Xinhuo. During the reporting period, sales of Xinhuo reached 4.59 million units, with sales revenue of 1.68 billion yuan, an increase of 75.6% over the same period last year. In 2021, the company recorded an impairment of $71 million (460 million yuan) in Imdo, and the current book value of Imdo's intangible assets is about $58 million.
This impairment of assets will help to reduce the pressure on the company's future profits.
The growth rate of deducted non-net profit in the first quarter is relatively fast, which is mainly affected by the base effect. The company's performance has achieved relatively rapid growth in the first quarter of 2022, which is expected to be mainly driven by the volume of new active element sales. As a genetic engineering drug for the treatment of acute heart failure, neo-activin can quickly improve the symptoms and signs of heart failure. Its health insurance contract will be renewed in 2021, and its sales are expected to maintain strong growth in the future. The company's off-end profit grew faster in the first quarter, mainly due to the small profit base in the same period last year and non-recurrent losses caused by changes in the fair value of financial assets held by the company.
The two Amet products are expected to be sold in recent years. The company invested in Amet Healthcare in 2020 to obtain the sales rights of its stent positioning system, fully degradable coronary drug-eluting stent system, fully degradable peripheral vascular drug-eluting stent system, and high-pressure balloon dilatation catheter. At present, the high-pressure balloon catheter has obtained the device registration certificate and production license, and the exclusive product stent positioning system has obtained the medical device registration certificate. The company has set up an equipment sales team, and it is expected that the above products will be sold in recent years, contributing to the company's new performance growth.
Profit forecast and investment suggestion: the company's net profit from 2022 to 2024 is estimated to be 770 million yuan, 1.02 billion yuan and 1.31 billion yuan, and the EPS is 3.11,4.12,5.26 yuan respectively, and the corresponding valuation is 10 times, 7 times and 6 times respectively. Considering the high clinical value of neovasculin as an anti-heart failure drug, the "buy" rating is maintained.
Risk tips: cardiovascular implant product research and development progress is not up to expectations, new activin sales are not as expected, product development failure risk, asset price fluctuation risk.