Summary of the report:
The company spans the two major industries of infusion and injection puncture equipment, and actively expands the business of hemodialysis. The company has an annual production capacity of 140 million bags of non-PVC soft bags and 90 million bottles of plastic bottles. It has an annual production capacity of 110 million safety syringes, 130 million aseptic syringes and 30 million infusion sets. At present, the company is working with the hospital to establish a hemodialysis center, which is operated by the hospital and the company exclusively provides hemodialysis consumables.
The large infusion business is not optimistic. The company is a leading company in the domestic non-PVC soft bag infusion industry, with infusion film production qualification, the main drug package materials can be self-supporting production. The company has set up a sound sales network in five key sales areas of Zhejiang, Jiangsu, Hubei, Shanghai and Guangdong, and the marketing network in some key areas has covered all villages and towns. In 2013, the company's sales revenue from non-PVC soft bag infusion and plastic bottle infusion totaled 456.54 million yuan, down 4.2% from the same period last year.
The decline of large infusion sales revenue expanded in 2014, and it is expected that under the background of bidding price reduction and sales control of large infusion products, sales growth in the next three years is still not optimistic.
The business scale of injection puncture medical devices is still small. The main products of the company's injection puncture equipment business are syringes and infusion devices, and independently developed safety syringes and insulin syringes. In 2013, the company's syringe sales income of 91.82 million yuan, infusion device sales revenue of 10.54 million yuan, the business scale is still small. China's medical puncture device market has an average compound annual growth rate of 10.6%, and the market size is expected to reach 35.76 billion yuan by 2017. Injection puncture medical device industry has Becton Dickinson & Co, Bei Lang, Weigao and other competitive manufacturers, the company has no obvious competitive advantage.
Investment suggestion: we expect the EPS of the company from 2015 to 2017 to be 0.34,0.32 and 0.31 yuan respectively. Considering the valuation of large infusion enterprises and medical device enterprises, it is considered that the valuation of the company is 27-31 times, and the corresponding stock price is 9.18-10.54 yuan.
Risk hints: the risk that the cost of medical insurance control exceeds expectations; the risk that the price of large infusion and injection puncture equipment falls too fast; the risk that the fund-raising project does not achieve the expected return.
