Core viewpoints
The performance achieved steady growth, overall in line with expectations. Recently, the company released the 2021 annual report and the 2022 quarterly report, the company achieved operating income of 593 million yuan in 2021, + 51.97% year on year, and realized home net profit of 186 million yuan, + 57.20% year on year. The company will bring Shuimu canopy into the scope of the consolidated statement in the second half of 2021. After deducting non-recurring profits and losses, the company has achieved a net profit of 126 million yuan for the whole year, an increase of 32.83% over the same period last year. 2022Q1 still achieved an operating income of 130 million yuan in the case of repeated outbreaks in many places. Year-on-year + 9.58%, realized net profit of 33.17 million yuan, + 10.76%, deducted non-return net profit of 30.55 million yuan, + 33.25%. The performance grew steadily and was in line with expectations as a whole.
The competitiveness of the company's products continues to highlight, and the sales channel continues to sink. From a business point of view, the company's main products spinal implant consumables achieved business income of 516 million yuan, an increase of 41.13% over the same period last year; trauma implant consumables reached 28.95 million yuan, + 26.04% compared with the same period last year, maintaining a rapid growth trend. The company is one of the few enterprises in the field of spinal implants in China that have the ability to carry out original innovation based on clinical needs, continuously focusing on therapeutic innovation, self-development of double-headed nails and other products, technology and product strength at the forefront, market acceptance continues to rise. In 2021, the company won the bid at a relatively high price in the trauma provincial alliance collection, which will help to expand the sales area of trauma products and promote the development of trauma business. at the same time, the company will take this as an opportunity to constantly adjust the sales team and distribution channel cointegration, further promote the spinal business sales channel sinking, continue to expand sales share, and contribute to long-term and stable growth.
Continue to increase investment in R & D and promote the innovation and development of the company. The company focuses on therapy innovation and new business R & D investment, continues to increase R & D investment and R & D team building, and continues to increase investment in spinal therapy innovation, sports medicine, ultrasonic bone dynamic systems and trauma. The company invested a total of 56.55 million yuan in R & D in 2021. Year-on-year + 66.74%, accounting for 9.53% of the company's operating income. According to the effect of R & D investment, 11 invention patents, 46 utility model patents and 7 design patents were added in 2021. At the same time, the acquired Shuimu canopy focuses on ultrasonic bone knives at the forefront of layout technology, and is expected to work with the company's current products to achieve innovative therapies. The company has developed from orthopaedic implantation to the overall clinical program layout. In the long run, the core strength brought about by innovation continues to enhance, and the prospect is worth looking forward to.
Profit forecast and investment suggestion
The company incorporated the Shuimu canopy business and raised the related income, but the 21-year expense rate was still high and slightly increased. We adjusted the forecast company's earnings per share in 2022-2024 to 1.03,1.31,1.55 yuan (the original 2022-23 was 1.02amp 1.31 yuan). With reference to the comparable company valuation, we gave the company 28 times PE valuation in 22 years, corresponding to the target price of 28.84yuan, and maintained the overweight rating.
Risk hint
Orthopaedic products with volume procurement risk, failure of new product research and development, product sales below expectations, increased competition in the industry and other risks