Jingxin Pharmaceutical: The acquisition of giant python shows that it has entered the medical device, and the business transformation has taken another step.
Category: Company Research Institute: China Investment Investment Co., Ltd. Researcher: Zhang Lei Date: 2015-08-04
A substantial step forward in the field of medical devices, the acquisition brought about increased performance and improved profitability: the company adopted a growth model of endogenous + extension, and has completed the successful transformation of APIs into preparations. The medical device industry , which has a good market prospect, has newly added medical special display equipment production and sales business based on the original pharmaceutical R&D and production, exceeding market expectations.
The performance shown by Jubilee promised a net profit of 28.5 million yuan in 2016. Combined with our forecast of the company's performance, this 90% equity acquisition is expected to increase the company's 2016 net profit by 21% and EPS by 0.2 yuan. In 2014, Jubilee showed a net profit margin of 13.6%. In the second year of high school, Jingxin Pharmaceutical Co., Ltd. has a net interest rate of 8.7% (2014). The acquisition significantly improved profitability.
In addition, according to the commitments of the M&A performance, in 2014-2017, the company's net profit is expected to maintain a compound growth of 30%, which further lays the foundation for the sustainable and stable growth of Jingxin Pharmaceutical.
The advantages of mergers and acquisitions in the research and development of medical displays are outstanding: Juyi display is one of the earliest companies in the medical display market segment in China. It has been developed for more than ten years and has formed a technical accumulation. It is the only domestic mainstream medical device capable of mass production. Manufacturers who customize display devices, the domestic market share is also the second in domestic brands, providing customized development and production of supporting displays for foreign medical equipment manufacturers including GE, Philips, etc. A self-developed standardized medical display.
The company's medical displays account for 97% of revenue, of which 65% comes from customized medical displays and 32% from standardized medical displays for hospitals.
The synergistic complementarity effect can be expected. The company is an excellent M&A transformation in the pharmaceutical sector. The giant medical display equipment industry is still in the early stage of rapid growth. The demand for medical display equipment is still large, compared with the pharmaceutical market. There is still huge growth potential in the future. According to data from Aowei Consulting (AVC), the medical display market in 2014 was more than 30,000 units, with an annual growth rate of more than 20%. Therefore, the company can quickly enter the medical device market through the acquisition of giant pythons, and realize the growth of the event. The complementarity of the cycle lays the foundation for the company to continue to maintain rapid growth in the future.
The performance of the 2015 mid-year report continued its high growth trend: the company achieved a revenue of 360 million yuan in a single quarter in 2015Q2, a year-on-year increase of 12.7%, and a net profit of 54 million yuan, a year-on-year increase of 55.2%. The high growth was mainly due to the bandage of the two main formulation varieties. With the promotion of non-base drug bidding and the promotion of basic drugs in 2015, the main formulation varieties and key base drug products are expected to benefit greatly during the policy dividend period, and the company's performance is expected to continue to maintain high growth in the future.
Maintain strong recommendation rating: We expect net profit attributable to parent company in 2015-2017 to be 1.8, 2.5 and 330 million yuan, and EPS to be 0.63, 0.86 and 1.15 yuan. Considering the impact of the purchase, the EPS is assumed to be 0.63, 0.93, and 1.25 yuan in 2016, corresponding to 29 times PE in 2016. The company is the outstanding target of “the high-growth of its own main preparations + successful transformation of procurement†in the sector. We give 43 times valuation and raise the target price to 40 yuan, maintaining a strong recommendation rating.
Risk warning: tenders and expectations; new products were approved and expected; raw material prices fell.
Diving Medical: Mobile Medical Powers Medical Devices New White Horse
Category: Company Research Institute: Shen Wan Hongyuan Group Co., Ltd. Researcher: Du Zhou, Luo Jiarong Date: 2015-07-30
Investment points:
The integration of Wandong and Shanghai medical equipment is progressing smoothly, winning the battle for the company's development. In 2014, the company completed an extremely important asset restructuring, breaking the growth ceiling of the original business of Yuyue, and the integration is progressing smoothly. After the reform of Wandong and Shangjian, the company has reduced the number of redundant personnel and greatly improved the operational efficiency. The company is confident that it will double the net profit rate of Wandong to 10% within two years; Shanghai Medical Machinery is The leader of the open surgical instrument industry has more than 500 product registrations. It takes many years for competitors to complete the registration of relevant products. This year, according to the semi-annual consolidated statement, it is expected to contribute operating income of 3-3.5 billion yuan and profit 3000- 35 million yuan, increasing the net profit of the parent company by more than 7%.
The “Big Doctor†app has a high conversion rate and works with the Internet giants. Through years of accumulation in blood glucose meters, the company has mastered the most core endocrinologist resources in China; Internet giants such as Ali and Tencent have natural flow advantages.
At present, the Internet giant has acknowledged that it has an advantage that it is difficult to catch up with the resources of doctors under the online game. The future relationship between the two sides will be cooperation rather than subversion. Yuyue and the country's most well-known 16 endocrinologists set up a network hospital, currently piloting in five hospitals. According to statistics, 70% of outpatients downloaded the “Da Doctor†app on the advice of experts, and 40% of the patients who downloaded the app purchased the Yueteng blood glucose meter. The purchase conversion rate is extremely high in the e-commerce field.
Join forces and seek deep cooperation with Pfizer and Huatai Fund. Many multinational pharmaceutical companies are relatively conservative in the field of pharmaceutical e-commerce, and they know very little about business models and operating methods. Pfizer is optimistic about the company's successful experience in pharmaceutical e-commerce and the company's sales channel advantages in the domestic secretion field. We analyze the future. Pfizer may share some sales channels with the company, and at the same time, deep cooperation in the field of pharmaceutical machinery (insulin pump, injection pen); the main purpose of establishing a merger fund with Huatai is to acquire the target of medical field and solve the problems of the company's remote medical treatment compliance. .
New white horses in the field of medical devices, optimistic about the company's future development prospects, maintain the overweight rating. The company has consolidated the advantages of the original oxygen generator and blood glucose meter, integrated the medical imaging business and surgical equipment business, and has a broad vision. It is already a step in the mobile medical field. We are optimistic about the company's industrial layout and maintain the company 15-17 The annual EPS0.76, 0.99, 1.32 yuan, corresponding to the price-earnings ratio of 58, 45, 33 times, maintain the overweight rating.
SHAANXI HAIBO BIOTECHNOLOGY CO., LTD , https://www.rozenbio.com