1. Acquire San Medino Medical to enter the market of blood glucose monitors
The market space for blood glucose monitors is huge. At present, there are about 370 million diabetic patients in the world and about 100 million in China. Assuming that the popularization rate of blood glucose monitors in China is 50% in the future, according to the cost of using blood glucose monitors per patient is 10, 000 / year, the potential market capacity of domestic blood glucose monitors is 500 billion yuan.
In May 2014, Meida entered into the blood glucose monitor market by signing an "investment agreement" with San Medino and acquiring a 9.75% stake. San Medino's core technology glucose biosensor is an international leader. Orders for continuous ambulatory blood glucose monitor (CGM) equipment have increased rapidly this year, with more than one million units in hand and is expected to be profitable in 2015. Sannuo Biology is a traditional blood glucose meter company in China (currently with a market capitalization of 9.5 billion yuan and a net profit of 197 million yuan in 2014). Compared with it, San Medino is currently the only company in China with patented technology for a dynamic blood glucose monitoring system, and its third-generation products were also on the market a year ago, with obvious technological advantages.
2. Cooperate strategically with Weigao Group to obtain resources such as sales channels
In January 2015, Meida Co., Ltd. signed a strategic cooperation agreement with Weigao Group, which mainly includes making use of the company's leading advantage in high-grade functional nylon fibers. to carry out extensive and in-depth cooperation with Weigao Group in medical protection, quartermaster supplies and other areas with huge and stable market demand. Taking advantage of the opportunity to enter the field of dynamic blood glucose monitoring from a high starting point by taking a stake in San Medino, we cooperate with Weigao Group in the fields of wearable medical devices, medical big data cloud platform and medical and health management. We believe that the cooperation between Meida and Weigao Group mainly focuses on the sales channels of its 1500 third-class hospitals, which will contribute to CGM sales in the future. In addition, the two sides also complement each other in other aspects, such as nylon will be used in military protective clothing, and CGM equipment can be used in conjunction with the insulin pump of Shandong Weigao.
3. Traditional business nylon filament industry is at the bottom
Meida shares mainly engaged in nylon filament, the existing nylon filament and slicing production capacity of 80, 000 tons and 200000 tons, of which nylon chip scale is the first in China. At present, the nylon filament industry is at the bottom of the cycle, and we believe that once the industry improves in the future, the company as a leading enterprise will enjoy greater flexibility.
4. Give a "highly recommended" rating
We expect the company's performance from 2015 to 2016 to be 0.04,0.15 yuan per share. Considering that the company is transforming into the field of blood glucose meter, which has a broad market space, the comparable company Dekang Medical (which produces similar products in China and San Medino) currently has a market capitalization of 36.9 billion yuan (a net profit loss of US $22.4 million in 2014). It can be seen that the company's market capitalization still has a lot of room for growth; in addition, the company also has rich room for imagination in big data, intelligent health care, cloud platform and other areas, we give the company a "highly recommended" rating.
Risk hint: nylon filament industry continues to be in the doldrums, blood glucose meter promotion low expectations