Thanks to the quick reaction ability to COVID-19 's epidemic situation, in the first three quarters of 2020, the company achieved operating income of 6.752 billion (+ 225.82%) and 2.072 billion in the same period in 2019, with an increase of about 4.7 billion in absolute amount; realized net profit of 2.705 billion yuan (+ 901.68%), net interest rate level of about 40%, and non-return net profit of 2.655 billion yuan (+ 1066.14%). Among them, in the third quarter, the company achieved revenue of 2.644 billion (+ 238.61%), compared with 781 million in the same period last year, the absolute amount increased by about 1.9 billion, and the net interest rate was close to 40%. Realize non-return net profit of 1.05 billion (+ 2014.66%).
At the end of the third quarter, 4.042 billion in cash, 735 million at the beginning of the period, increased sales rebate; 2.116 billion of accounts receivable, 1.232 billion at the beginning of the period, increased business growth; inventory 1.11 billion, 343 million at the beginning of the period, due to the expansion of production scale and increased stock of finished goods and raw materials. Accounts payable 744 million, the beginning of the period 171 million, due to the expansion of production scale, the purchase of kits and raw materials, equipment and equipment increased. In addition, financial and administrative expenses have increased due to the implementation of share buybacks and employee stock ownership plans.
According to the situation of Q3, we adjust our profit forecast, and we estimate that the company will achieve operating income of 96.50, 8670, and 7.676 billion yuan respectively in 2022 (the previous value is 119.40, 10501, and 9.427 billion yuan, respectively), and the net profit of homing will be 39.9629.49, 23.48 (42.34, 31.692.38 million yuan) respectively. The corresponding EPS is 5.87 yuan per share (the previous value is 10.58, 7.92, 6.59 yuan per share), and the PE is 14.6, 19.8 and 24.9 in 2020-2022, respectively, as of October 29, 2020. Maintain a "buy" rating.
Overseas layout seeks long-term, depth, unique competition mode and advantages due to the global outbreak of COVID-19 epidemic, the market demand for COVID-19 testing kits and services is surging, the company relies on excellent comprehensive strength to achieve a wide layout of fire eye laboratory cloth at home and abroad, and successfully transformed from a single reagent exporter to a comprehensive solution service provider. Thanks to COVID-19, Huada has made great progress in overseas, including product certification and overseas channel cooperation.
Risk tips: lower-than-expected laboratory utilization; declining competitiveness or increased competition; medical safety accidents; political risks; exchange rate fluctuations, etc.