Event: the company released the third quarterly report of 2022: the first three quarters achieved operating income of 868 million yuan (+ 10.81%YOY), net profit of 10.21 million yuan (- 85.29% YOY), and non-return net profit of 4.7 million yuan (- 92.97% YOY). The performance is basically in line with market expectations.
Comments:
The disturbance of the epidemic weakened, and the Q3 revenue increased month-on-month: the single-quarter operating income of 2022Q1-Q3 company was RMB 292, 266, 310 million yuan, respectively, compared with the same period last year, which was + 20.22%, 0.91%, 12.00%, respectively, and the net profit of returning to the mother was 1395, 884, 000. 22Q1-Q2 is affected by the epidemic in many places across the country, and the company's revenue is-5.14% less than 8.77% respectively. 22Q3's revenue increased by 16.5% month-on-month, and we estimate that due to the weakening of the impact of the 22Q3 epidemic, the medical needs of hemodialysis patients have been restored, resulting in an improvement in the company's product sales. In addition, in order to accelerate the expansion of product market share, the company strengthened the allocation of sales and management personnel during the reporting period, corresponding to the increase in sales and management costs. In the first three quarters of 22, the company's sales expenses and management expenses were 111 million yuan and 26.70% respectively, compared with the same period last year, and the sales expense rate and management expense rate were 12.84% and 8.73% respectively, respectively, compared with the same period + 3.81pct/1.10pct. The increase in the rate of sales and management expenses has led to a sharp decline in the company's return net profit.
Increase R & D investment and promote product iterative upgrading: the company's 2022Q1-Q3 R & D expenditure is 61 million yuan, an increase of 29.2% over the same period last year. In July 2022, the company's hemodialysis equipment D800S, D800H and D800Plus obtained the "Medical device Registration Certificate", which effectively supplemented the echelon of the company's hemodialysis equipment products. D800 series products are high-end hemodialysis equipment developed by the company. Compared with the second-generation hemodialysis equipment, the performance of D800 series products is further improved. Among them, D800Plus is the first three-pump hemodialysis filtration equipment in China, which breaks the barriers of international brands and can fill the blank market of domestic products.
The company's R & D strength in the field of blood purification has stepped onto a new level, laying a technical foundation for expanding market share and promoting the company's rapid development.
Profit forecast, valuation and rating: in order to accelerate the expansion of market share and strengthen the input of sales and managers, we have lowered the company's 22-24 net return to RMB 0.18x102pm respectively (79% PE 11% gamma 2% lower than the previous forecast), and the current price corresponding to 22-24 is twice as much as 139-25-17.
Considering the increasing investment in R & D and the gradual strengthening of technological innovation, the products continue to upgrade iteratively, which is expected to enhance its competitiveness in the domestic and global markets and maintain the "buy" rating.
Risk tips: intensified market competition; new product promotion and sales are not as expected; capacity expansion and digestion is not as expected; product collection risk and so on.