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Yuyue Medical (002223): 2019H1 net profit grows 14% per year slightly lower than expected
Summary and suggestions: Company performance: The company achieved operating income of 25 in 2019H1.0 million yuan, +12 year-on-year.5%, to achieve a net profit of 5.300 million, a year-on-year increase of +13.5%, net profit after deduction 5.100 million, a year-on-year increase of +14.The EPS is 0 and 4%.53 yuan.The company’s performance was lower 北京夜网 than our expectations, mainly due to the increase in channel inventory and expense growth.In terms of quarters, the company’s Q2 single quarter achieved operating income13.0 million yuan, +10 year-on-year.0%, recorded a net profit of 2.90,000 yuan, +11 year-on-year.9%, net profit after deduction 2700 million, a year-on-year increase of +12.8%. The home and clinical business grew well, and the medical breathing and oxygen supply business intervals were as follows: (1) The company’s home medical realized revenue.200 million, a year-on-year increase of +24.5%, online and offline businesses have maintained rapid growth, and gross profit margin has been extended and increased 3.3 up to 39.0%, estimated to benefit from changes in product structure and falling raw material prices; (2) Medical breathing and oxygen supply business achieved revenue7.30,000 yuan, -6 compared with the same period last year.6%, gross margin is 46.6%, a slight increase of 0 a year.The three separate reductions in revenue were mainly due to the company’s accelerated clearance of the historical inventory of the channel. The sales of some products such as oxygen generators and atomizers were affected to some extent. However, it is expected that after the channel inventory is cleared, the sales growth will recover.(3) The company’s medical clinical business realized revenue 5.800 million, a year-on-year increase of +19.9%, gross profit margin increased by 1.5 up to 50.2%. The increase in expense ratio affects the growth rate of short-term performance: the company’s 2019H1 comprehensive gross profit margin is 41.7% per year.5 units; the sales expense ratio increases by 0 every year.5 up to 9.4%, mainly due to the Tmall flagship store being self-operated, the increase in short-term sales expenses decreased; the company management + R & D expense ratio increased by 1.1 up to 7.3%, mainly due to the increase in research and development expenditures; the company’s financial expenses were -0.2%, increasing by 0 every year.5 units.Overall, the company’s period expenses were 16.5%, an increase of 2 per year.The three averages dragged down net profit growth. Earnings forecast and investment advice: As the company’s performance is slightly lower than expected, we slightly cut our earnings forecast for the company.We expect the company to achieve net profit for 2019/20208.5 and 10.27 ppm, +16 compared to the same period last year.6% and +21.1% (Originally expected to achieve a net profit of 8 in 2019/2020.8 and 10.300 million, yoy is +21 respectively.4% and +21.6%), equivalent to EPS0.85 and 1.0 yuan.The current highest corresponding PE is 27 times and 22 times, respectively.Although the company’s short-term performance has fluctuated, it is necessary to use the inventory of medical breathing and oxygen supply products and the release of new production capacity of Shanghai Machinery Group and Shanghai Zhongyou. It is expected that the growth rate of the company’s performance will gradually recover.Investment advice. Risk warning: New product sales are lower than expected, extension integration is lower than expected, and capacity release is lower than expected