Event: the company announced that it signed an "equity transfer agreement" with former Hai Hongxing and Aoyuan Health, intending to acquire 100% equity of Guangdong Aurora Health Management Consulting Co., Ltd for 30 million yuan. Guangdong Aurora has two subordinate medical and beauty institutions, namely Guangzhou Aurora Medical Cosmetology Clinic and Guangzhou Aurora Huacheng Medical outpatient Department.
Comments: the target company, Guangdong Aurora, achieved revenue of 25.75 million yuan, net profit of 2.214 million yuan, and net interest rate of about 8.6%. From January to August of 2021, the company achieved revenue of 12.634 million yuan and net profit of 275000 yuan. After the completion of the acquisition, it is expected to bring a positive contribution to the company's performance. Specifically, (1) Aurora Medical Cosmetology Clinic was established in 2018 and was built by PPEUM Lifen, a large Korean medical brand. It specializes in light medical projects such as hyaluronic acid, Botox, line carving, laser and so on. It has two cosmetic dermatologists, with a net profit of 6.43 million yuan and a net interest rate of 39.6% in January-August 2021 with a loss of 2.21 million yuan. (2) Aurora Huacheng Medical outpatient Department has a cosmetic dermatologist, covering from basic skin care programs in life cosmetology to high-end photovoltaic anti-aging, mesodermal therapy, injection filling and injection wrinkle removal, with a net profit of 100000 yuan in 2020. the net interest rate was 2.2% and the loss from January to August 2021 was 1.49 million yuan.
The company's acquisition of Guangdong Aurora is an important measure for its continued layout of the medical and beauty industry. accurately grasping the development of light medical beauty is conducive to further expanding the business scale of the company's medical and beauty services. in the future, it is expected to make a greater breakthrough in the operation and expansion of the light medical and beauty chain.
Profit forecast and investment advice: the company adheres to the professionalism of pure medical beauty and the long-term doctrine of value creation, constantly enriches the connotation and extension of "medical science and technology business, material business, service provider", and promotes the landing of various businesses. take the ecological integration of medical beauty and the integration of industry chain as the core to create a closed loop of medical beauty business. The company is expected to achieve a net profit of 2.3,3.7 and 570 million yuan in 21-23 years. We maintain the company's fair value of 28.55 yuan per share and maintain the "overweight" rating.
Risk tips: intensified market competition; the progress of industrial layout is not as expected; acquisition and integration is not as expected.