Yangtze River Business Daily news ● Yangtze River Business Daily reporter Cai Jia
JizhongZi Technology (688737. SH) after that, A-shares broke on the first day of listing for two consecutive trading days.
On October 25, Kefu Medical (N Kefu, 301087.SZ) and Kelda (N Kelda, 688255.SH) were listed on the ChiNext Board and the Science and Technology Innovation Board respectively, opening 10.89% and 4.9% lower in the morning, both breaking.
In this offering, Kefu Medical's initial price-to-earnings ratio was 37.15 times, which was not low among the new shares during the year, raising a total of 3.724 billion yuan, exceeding the planned fundraising ceiling of 2.7 billion yuan.
The reporter of Changjiang Business Daily noted that as a well-known domestic household medical device company, last year, under the catalysis of the epidemic, kefu medical operating income and net profit attributable to the mother increased by 62.46% and 242.8% year-on-year to 2.375 billion yuan and 424 million yuan. With the easing of the epidemic, the company's performance growth rate has slowed down significantly this year. In the first three quarters of this year, the company is expected to achieve operating income and net profit of 1.703 billion yuan and 310 million yuan, down 2.18% and 6.5% year-on-year.
Different from other medical device companies, Kefu Medical focuses on online platform sales including Tmall and JD.com, and the company's online sales account for more than 70% in 2019 and 2020.
But at the same time, the question of Kefu Medical's emphasis on marketing and light research and development is endless. In 2020, the company's sales expenses were 523 million yuan, accounting for 22.04% of revenue, twice the average level of the same industry, of which online service fees and promotion fees totaled 208 million yuan. However, last year, the company's R & D expenses were 44.2635 million yuan, accounting for only 1.86%, and the R & D expense rate for three consecutive years did not exceed 2%, far lower than the industry average.
Sales of epidemic prevention supplies fell back in the first three quarters of the performance fell twice
According to the prospectus, Kefu Medical publicly issued 40 million new shares at a price of 93.09 yuan per share, issued a price-to-earnings ratio of 37.15 times, raised a total of 3.724 billion yuan, and the net amount of funds raised after deducting related expenses was 3.527 billion yuan, compared with the original planned fundraising ceiling of 1.007 billion yuan.
As a well-known comprehensive household medical device enterprise in China, the price-to-earnings ratio of Kefu Medical's IPO is not low among new shares. According to Flush data, as of October 25, of the 397 companies that have been listed this year, 96 companies have a price-earnings ratio of more than 30 times, and the price-earnings ratio of Kefu Medical's initial public offering ranks 63rd among new stocks this year.
However, in the case of high pricing and over-offering, the performance of Kefu Medical on the first day of listing surprised the market. On October 25, Kefu Medical officially landed on the GEM. On the same day, the company opened 10.89% lower, fell below the issue price at the opening, and closed at 88.97 yuan / share, down 4.43%.
On the same day, The same day broke also the science and technology innovation board listed company Kylda, opened 4.9% low in the morning, and then quickly turned red, closing at 52.18 yuan / share in the end, up 10.76% on the first day.
It is worth mentioning that this is already the phenomenon that the A-share market has broken on the first day of the listing of new shares for two consecutive trading days. On October 22, Zhongzi Technology, a company on the Science and Technology Innovation Board, was issued and listed at a price of 70.9 yuan / share, and the opening price of the day was 70 yuan / share, and it broke at the opening. The lowest price in the session was 58.88 yuan per share, down 17%. At the close of the day, Zhongzi Technology reported 66.03 yuan / share, down 6.87%, becoming the second new stock that broke on the first day of listing since the opening of the science and technology innovation board after Jianlong Micro-nano.
According to the data, Kefu Medical was founded in Changsha in 2009 by Zhang Min and Nie Juan, and after more than ten years of professional operation, Kefu Medical has developed into an enterprise with a variety, complete channels, advanced technology, strong competitiveness and influence in the field of household medical devices.
From 2018 to 2020, Kefu Medical achieved operating income of 1.087 billion yuan, 1.462 billion yuan and 2.375 billion yuan respectively, net profit attributable to shareholders of the parent company was 66.227 million yuan, 124 million yuan and 424 million yuan, weighted average return on net assets was 33.17%, 29.47% and 53.1%, and net cash flow from operating activities was 6.1791 million yuan, 57.3978 million yuan and 496 million yuan, respectively.
The Yangtze River Business Daily reporter noted that after the outbreak of the epidemic, the demand for epidemic prevention supplies soared, driving kefu medical revenue and net profit attributable to the mother last year to increase by 62.46% and 242.8% respectively, but with the easing of the epidemic, the proportion of sales of epidemic prevention supplies fell, and in last year's high performance base, the performance of Kefu medical has declined this year.
The prospectus discloses that in the first half of this year, Kefu Medical achieved operating income of about 1.1 billion yuan, a year-on-year decrease of 10.5%; net profit of 216 million yuan, a year-on-year decrease of 20.97%. At the same time, Kefu Medical expects that the operating income and net profit in the first three quarters of this year will be about 1.703 billion yuan and 310 million yuan respectively, down 2.18% and 6.5% year-on-year.
Kefu Medical also admitted that in the future, with the continuous expansion of sales scale and the return of sales prices and sales of epidemic prevention materials after the epidemic to normal, there is a risk of decline in the growth rate of the company's operating income and online sales growth.
Online sales account for 77% of the sales rate far exceeds that of peers
Different from other medical device companies, Kefu Medical is the earliest enterprise in China to obtain the medical device Internet B2B and B2C trading licenses, and online sales are the company's main sales channels, but there is also a situation where the e-commerce sales platform is more concentrated.
The prospectus discloses that from 2018 to 2020, the proportion of online sales of Kefu Medical is 64.95%, 71.62% and 77.82% respectively. The company's online sales are mainly sold through self-operated stores, direct hair models and platform warehousing models on mainstream e-commerce platforms such as Tmall, JD.com, Pinduoduo, and Vipshop. During each reporting period, the total operating income of the company's two major e-commerce platforms on Tmall (including Tmall Supermarket, Ali Health Pharmacy) and Jingdong accounted for 62.48%, 67.62% and 66.64% of the main business income of the year, respectively, accounting for a relatively concentrated proportion, and there is a certain dependence on the above platforms.
Affected by the online sales model, the sales scale of Kefu medical products will increase significantly during online promotional activities such as "618", "Double Eleven" and "Double Twelve", resulting in certain fluctuations in the company's operating income.
The reporter of Changjiang Business Daily further combed and found that Kefu Medical, which mainly relies on online sales, has always had the question of heavy marketing and light research and development. According to the prospectus, during each reporting period, the sales expenses of Kefu Medical were 274 million yuan, 375 million yuan and 523 million yuan, accounting for 25.23%, 25.63% and 22.04% of the revenue, respectively, and its sales expense ratio was significantly higher than the average of 13.72%, 14.67% and 10.19% of comparable listed companies in the same industry, especially in 2020, the sales expense ratio of Kefu Medical reached twice the average level of the same industry.
Among the sales costs of Kefu Medical, the total cost of employee compensation and transportation costs accounts for about 50%, followed by online service fees and promotion fees. During each reporting period, the company's online service fees were 55.3954 million yuan, 82.5063 million yuan and 118 million yuan, and the online promotion fees were 38.5841 million yuan, 46.6161 million yuan and 90.5664 million yuan, respectively, with a total of 93.9795 million yuan, 129 million yuan and 208 million yuan.
However, from the perspective of its R&D investment, during each reporting period, the R&D expenses of Kefu Medical were 11.9252 million yuan, 16.0149 million yuan and 44.2635 million yuan, accounting for 1.1%, 1.1% and 1.86% of the operating income of the current period, respectively, and did not exceed 2%.
In the same period, the average R&D expenses of comparable listed companies in the same industry were 108 million yuan, 139 million yuan and 237 million yuan, respectively, and the average R&D expense rates were 7.26%, 6.83% and 4.53%, respectively.
Editor-in-charge: ZB
This article originated from the Yangtze River Business Daily