Let’s look at it today. Yuyue Medical is a company listed on the main board of the Shenzhen Stock Exchange that produces medical equipment. They also produce products such as ventilators.
Judging from its revenue structure by product in the first half of 2022, Yuyue Medical's product structure is relatively healthy, with four products including "respiratory treatment solutions" accounting for a relatively large proportion; in terms of regions, the vast majority of products are still sold domestically, with export sales accounting for only just over 10%.
In 2019 and before, Yuyue Medical's revenue growth is getting slower and slower, and it will basically stabilize at a slightly higher growth rate than GDP. Suddenly the epidemic came. Although the growth of Yuyue Medical was not as obvious as that of Tongce Medical , it still reached a growth rate of 45.1% in 2020. It can be said with certainty that their family has benefited from the epidemic.
However, as the epidemic stabilizes, they will not be able to grow in 2021. In the first three quarters of 2022, there was even a slight callback of to . With the adjustment of the epidemic control policy, it may not be realistic to produce immediately to expand sales, or if prices are increased without worrying about sales, then price increases will naturally come out. Although businesses are increasing, are manufacturers increasing? We really don't know, but if its gross profit margin improves significantly in the annual report, it's almost certain.
Before the epidemic, the growth of Yuyue Medical's net profit did not significantly exceed the growth of revenue. However, under the epidemic, especially in 2020, it is obvious that the growth rate of net profit of 1.3 times is an order of magnitude faster than the growth of revenue. The performance explosion caused by accidental events is not particularly stable. Since 2021, net profits have begun to correct.
As you can guess, Yuyue Medical's gross profit margin in 2020 did hit a peak at that time, and it was the first time in the recent past that it exceeded half. There has been a correction in the last two periods, but it is still much higher than before the epidemic. In other words, under the epidemic, their net profit growth may be brought about by the combination of scale effect and gross profit margin improvement, just like the "price increase and inventory " of real estate in the past two years.
However, the growth of return on net assets and is not very obvious. The reason is not complicated. There are too many net assets, because if you earn more, you will not have a lot of dividends , so the operating efficiency of unit assets will decrease.
Judging from the composition of its costs and expenses and its ratio to revenue, after Yuyue Medical's revenue surged in 2020, the ratio of expenses to revenue during the period did not fall but rose. In other words, all their net profit growth comes from the increase in gross profit margin, and the scale effect not only does not play a role, but is even a side effect.
This is not over yet. In subsequent years or periods, sales expenses are still growing significantly. Even if the offset effect of negative financial expenses is deducted, the ratio of expenses to revenue during 2021 will still increase; including the first three quarters of 2022, if financial expenses are not included, period expenses will also increase.
In other words, they are very good at spending money. Of course, the team and employees should try their best to share the pie in the sky. However, I really don’t know the people in their company. I don’t know if their bonuses in the past two years are as high as the employees of the nucleic acid detection company that was revealed some time ago.
Cash flow 's performance is better than net profit. Not only did it make a lot of money, but almost all of it was recovered. It's really awesome.
Not to mention the ability to repay debts. Cash and trading financial assets alone are much higher than all liabilities. The main reason is that if you have more money, you have to find ways to spend it, and if you have no money to repay debts, these situations do not exist at all.
Judging from the slight increase in its inventory of at the end of the third quarter compared to the same period last year, it seems that the inventory shortage of some of their products may not be as serious as imagined. However, due to a sudden increase in demand, it is very likely that a product will be sold out of stock.
Some people are happy and some are sad. Yuyue Medical may be the one who should be happy. It has made a fortune in the past three years, which is of course a good thing for the company.However, just like an individual accidentally winning the lottery, often such accidental events will affect the team's atmosphere and fighting spirit. After this wave of infection peaks, they may have to organize their teams and calm down. Otherwise, in a few years we may see a situation that investors don't want to see.
statement: The above is a personal analysis and does not constitute investment advice to anyone!
#Yuyue Medical Oximeter was sold to 7 times the original price#
