Net profit exceeds 1 billion? This track is popular

Recently, there have been various news about Tianjin Jiuan Medical Electronics Co., Ltd. (hereinafter referred to as "Jiuan Medical") in the industry , including signing a large order of 8.1 billion yuan and its stock price rising and falling to the limit ... On the evening of January 19, Jiuan Medical released its 2021 annual performance forecast. How will Jiuan Medical, known as the "monster stock", perform in 2021?

Jiuan Medical's performance soared, and its net profit may reach 1.2 billion in 2021

During the reporting period, iHealth expects to achieve a net profit attributable to shareholders of the listed company of RMB 900 million to RMB 1.2 billion in 2021, an increase of 271.40% to 395.19% over the same period last year; the net profit after deducting non-recurring gains and losses is RMB 850 million to RMB 1.15 billion, an increase of 243.46% to 364.68% over the same period last year.

According to iHealth's 2020 annual report, the company's net profit attributable to shareholders in 2020 was only 242 million yuan, and its non-net profit was about 247 million yuan. Before 2020, the company's net profit after non-net profit had been in the red for seven consecutive years. In 2015 and 2017, iHealth's losses reached 150 million yuan each.

In the first three quarters of 2021, iHealth performed mediocrely, with both revenue and net profit showing a downward trend. Its net profit after deducting non-recurring items was a loss of more than 20 million yuan. What are the reasons for its declining performance? As the domestic epidemic is under control and global epidemic prevention products continue to be supplied, epidemic prevention products are no longer as scarce as before, and product gross profit margins have also declined. However, after the company's new crown detection products obtained emergency use authorization in the United States in November, the company's performance also increased significantly in a short period of time. iHealth's profit in a single quarter alone has exceeded the total profit of the past decade .

In the third quarter of 2021, the company's revenue was 221 million, a year-on-year decrease of 60.93%, and its net profit loss was about 4.649 million. Jiuan Medical said that the main reason for the decline in revenue was the decrease in overseas sales of epidemic prevention materials produced by the company.

In general, iHealth has successfully reached a new level in 2021, with its performance soaring and its stock price rising about 10 times in just two months. However, like many companies that have performed well during the epidemic, iHealth is also facing a difficult problem: what path should be taken after the epidemic?

In fact, iHealth mentioned the risks in its earnings forecast. According to the announcement, the company's operating performance in 2021 mainly depends on COVID-19 testing reagents, and there is significant uncertainty as to whether its future performance can continue to maintain rapid growth .

Some industry insiders said that as a company that mainly produces and sells epidemic prevention products, if it wants to survive for a long time, the importance of research and development capabilities is self-evident, so as to improve its own competitiveness.

In terms of iHealth's R&D expenses in recent years, they were 68.8638 million yuan in 2018, 80.0345 million yuan in 2019, and 76.5446 million yuan in 2020. By the third quarter of 2021, its R&D expenses had increased to 94.5266 million yuan.

The epidemic is like a shot of "booster". During this period, iHealth successfully sold its products overseas with its own strength. Some of its products sold well on the Amazon platform, which is one of the important reasons for the company's rapid performance.

Too popular! Forehead thermometer sales exceeded 10,000 in a single day

The 2020 epidemic has affected the lives of everyone in the world. During the critical period of the epidemic, iHealth took advantage of the situation and began to provide medical products such as forehead thermometers and blood oximeters to overseas markets in March 2020 after receiving demand inquiries from Italy, France, the United States and other places.

While exporting products, Jiuan Medical's forehead thermometer products have also been warmly sought after and well received by consumers on the Amazon platform. According to Jiuan Medical's financial report data, on July 8, 2020, the single-day sales of forehead thermometer products on the Amazon platform exceeded 20,502 units.

After this campaign, the popularity and reputation of iHealth Medical and its subsidiary brand iHealth series products were completely enhanced, which in turn led to the continued growth in sales of its blood oximeters, blood pressure monitors, blood glucose meters, nebulizers, oxygen concentrators and other products.

The increase in product sales has laid the groundwork for Jiuan Medical to achieve good revenue in 2020. Financial report data show that Jiuan Medical's revenue in 2020 exceeded 2 billion yuan, an increase of 184.36% compared with the same period in 2019; its net profit attributable to the parent company was 242 million yuan, an increase of 264.68% compared with the same period in 2019.

In terms of operating income, its iHealth series products accounted for the largest revenue, with operating income of 1.418 billion yuan, accounting for 70.62%.

iHealth's forehead thermometer has contributed greatly to the success of iHealth's revenue in 2020. Relevant data shows that the forehead thermometer link has accumulated 130,000 ratings and has long dominated Amazon's BSR list.

In addition, due to the increased demand for telemedicine during the epidemic, the sales of Jiuan Medical's IoT products, such as blood pressure monitors, blood glucose meters, blood oximeters, weight scales, etc., are also growing overseas.

According to relevant media reports, as early as December 2020, iHealth used the cross-border e-commerce B2B (business-to-business) method to declare the export of a batch of blood pressure monitors and blood glucose meters, and the cumulative value of these products reached US$163,000 .

Not only that, benefiting from the continued growth of its revenue and orders, Jiuan Medical's stock price has also continued to soar. According to the data in the past two months, Jiuan Medical's stock price has soared more than ten times, with the closing price on January 20 being 77.66.

In fact, it is not just Jiuan Medical. Many companies selling medical supplies have performed well under the epidemic and achieved remarkable results. It is understood that Intech Medical, which specializes in protective gloves, saw its net profit increase by more than 20 times in 2020, and Kangtai Medical's net profit also exceeded 600 million.

However, judging from the current situation, whether iHealth's future operating performance can continue to maintain a high growth rate is still unknown. At present, iHealth's revenue mainly depends on the United States. The progress of the US epidemic prevention and control, the selection of testing products, the competitiveness of the company's products and sales channels will have a significant impact on the company's performance . iHealth has mentioned this in its 2021 performance forecast.

For many sellers, the entire process of production, quality control and overseas sales of medical supplies on platforms has very strict requirements. Therefore, there are relatively few sellers selling medical supplies on Amazon. However, it is undeniable that at a time when countless sellers are spiraling inward at low prices, medical supplies are also a major outlet, and interested sellers can pay attention to it.

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