Main points of investment:
The company released its third quarterly report for 2022, which slightly exceeded expectations. 1) 22Q1-3 realized revenue of 1.49 billion yuan, an increase of 45.6% over the same period last year, and net profit of 990 million yuan, an increase of 40% over the same period last year, deducting 970 million yuan of non-return net profit, an increase of 44.1% over the same period last year.
2) 22Q3 achieved revenue of 600 million yuan in a single quarter, an increase of 55.2% over the same period last year, and net profit of 400 million yuan, an increase of 41.6% over the same period last year, deducting 390 million yuan of non-return net profit, an increase of 52.3% over the same period last year. The performance in the third quarter slightly exceeded expectations, and the performance in the second quarter improved significantly compared with the second quarter. Under the background of the spread of the epidemic in the off-season of consumption in the beauty industry, it fully demonstrated the resilience of industry demand.
The performance of the core products is strong, the white angel is double, and the high body series is growing steadily. 1) the revenue of the hi sports series 22Q3 is expected to grow by 40% over the same period last year, accounting for about 68% of the company's revenue. Hi body series has formed a 1.5ml/2.5ml/ panda needle / live bubble needle product matrix card subdivision track, the series shows a multi-pole stick growth trend. Benefiting from the inclusion of water light needles into the three types of equipment regulatory policies, skin products such as 2.5ml and Huohuo bubble needles showed strong performance in the first three quarters, and the panda needles for periorbital indications continued to release. 2) the promotion of Bai Angel is smooth and rapid. 22Q3 revenue is expected to double month-on-month growth, sales performance is eye-catching, the share continues to rise. 3) 22Q3 has achieved steady growth and is expected to grow by about 50% compared with the same period last year.
The gross profit margin continues to rise and the overall operation is healthy. 1) the gross profit margin has increased steadily. 22Q1-3 has a gross profit margin of 94.6%, an increase in 1.1pct compared with the same period last year, mainly due to the rapid release of angel needles, a high-margin product. 2) the rate of R & D and management expenses has been increased.
22Q1-3 sales expense rate 9.0%, year-on-year decline 0.8pct, management expense rate basically unchanged, R & D expense rate 7.7%, year-on-year increase in 1.7pct, due to the company's increased investment in R & D, the final net interest rate decreased to 66.6% compared with the same period last year. The net interest rate of 66.3% in the third quarter is expected to be slightly lower than that of Q3, which is due to the confirmation of expenses in the fourth quarter. 3) the operation develops healthily, and the cash flow situation continues to improve. The final accounts receivable of 22Q3 was 130 million yuan, up 118.7% from 60 million yuan in the same period last year. This is due to the sales expansion brought about by the company's new expansion during the day. Inventory was 40 million yuan, a slight increase of 18% over the same period last year, in line with the trend of income growth and the seasonal characteristics of industry sales. The net cash flow of 22Q1-3 operating activities increased by 41.3% to 950 million yuan over the same period last year, and the cash flow environment continued to improve.
The introduction of South Korean Huons BP botulism products, the reserve of products under research is sufficient. In order to further enhance the long-term competitiveness of the company's product line, in May this year, the company signed a distribution cooperation framework agreement with South Korea's Huons BP company, stipulating that the company introduced Huons BP botulinum products by R & D registration and won the exclusive distribution rights in the mainland, Hong Kong and Macao. At present, the product has completed three phases of clinical practice and is expected to be approved for launch in 23-24 years. In addition to botulinum products, the company is also developing products such as liralutide injection for chronic weight management and hyaluronidase for injection that can be injected subcutaneously.
The company is the domestic medical and pharmaceutical equipment leader, large single high body series steady growth, angel needle stick to become the second growth pole, diversified product forward-looking layout to open the future growth space. The company has been ploughing deeply in the field of medicine and equipment for more than ten years, the leading position is stable, the product ability is strong, the product reserve is sufficient, and the product matrix is perfect and expanding constantly. To maintain the original profit forecast, it is estimated that the net profit of return to the mother in 22-24 is 14.1 billion yuan, 2.71 billion yuan, corresponding to PE is 71-50-37 times, maintaining the "buy" rating.
Risk tips: the epidemic affects terminal consumption; the launch of research projects is delayed; business qualifications and product registration documents can not be renewed on time; medical and beauty products compete fiercely.