Main points of investment:
Wilder color ultrasound business will expand, through the integration of Shanghai Baijin to a comprehensive manufacturer of medical devices. The B-ultrasound industry contains huge opportunities brought by product technology upgrading, and the new medical reform policy will bring structural opportunities to the grass-roots market. While Wilder continues to occupy a leading position in the field of black-and-white super segmentation by virtue of its R & D advantages, the company's color ultrasound business will be promoted rapidly with the help of cost advantages. The company may take advantage of the capital advantage of HTC listed companies to fully carry out vertical and horizontal mergers and acquisitions and step out of the B-ultrasound single business. More importantly, the company will move forward to a comprehensive manufacturer of medical devices by integrating the advantages of Shanghai Baijin's sales channels.
Integrate the advantages of Shanghai Baijin sales channels to open up the medical device industry chain. Shanghai Baijin has strong sales strength and background, and will fully integrate the company's existing channel advantages to make up for the shortcomings of Wilder marketing.
With the help of the channel advantage of Shanghai Baijin, Wilder's sales growth may usher in an inflection point, which will accelerate the listed companies to the strategic goal of medical device diversification, which will help to improve the overall performance and valuation level.
Wilder and Baijin will make use of HTC's financial advantages, complement each other's resources and become stronger quickly. After HTC completed the Wilder absorption merger in 2010, its profitability improved significantly, with revenue and net profit rising 55% and 74% respectively from January to September 2011 compared with the same period last year. The entry of Shanghai Baijin will further accelerate the overall development of the company. Relying on the background of Chairman Shen Guofu, HTC has strong financial strength. Both Wilder and Shanghai Baijin will make use of HTC's financial advantages, complement each other's resources and become stronger quickly.
Give "overweight" rating, with a target price of 19.8 yuan. We expect the company's EPS to be 0.46,0.64 yuan from 2011 to 2012, considering the high growth of the medical device business, we price the business with 30 times PE in 2012, and give the company's textile business a valuation of 15 times PE in 2012, taking into account the company's stake in Haining Picheng, corresponding to the target price of 19.8 yuan. Give a rating of "overweight".
