Main points of investment: pay attention to the development and layout of the company in the medical industry
McAudi holding Group is the controlling shareholder of Maddie Electric, which has three assets: Maddie Electric, Maddie Industries and Maddie Medical. McGrady Electric, as a listed company of the Group, was listed in 2012. In 2015, McGrady Electric completed the acquisition of McGrady Industries, realizing the injection of group assets into listed companies. At present, McGrady Medical is not listed in the group.
Maddie Electric is the largest manufacturer of epoxy insulators in China, and its sales are stable. The company is the largest manufacturer of epoxy insulators in China, with revenues of 292 million yuan, 315 million yuan and 306 million yuan respectively in 12-14 years, and net profits belonging to the parent company of 35 million yuan, 43 million yuan and 38 million yuan respectively, with an average annual compound growth rate of 3.60%. The upstream of the company's insulation products are epoxy resin and hardware processing enterprises, and downstream are electrical equipment manufacturers. The company has established long-term cooperative relations with Schneider, ABB, Siemens and other large multinational companies, and the sales volume of the products is stable.
McGrady Industries is the domestic microscope manufacturer ranked first by brand. Under the restructuring plan, the company acquired a 100% stake in Maddie Industries, which has been approved by the CSRC and the Ministry of Commerce. The company acquired 100% stake in Maddie Industries by issuing shares at a purchase price of 650 million yuan. The main business of McGrady Industries is the production and sales of optical microscopes, digital microscopes and microscopic image integration system products. At present, the four giants of optical microscopes in the domestic market are Zeiss, Lycra, Nikon and Olympus, according to the "2015-2020 China microscope Market Monitoring and Development trend Research report", McAudi brand microscope produced by Maddie Industries is the fifth largest brand in China, second only to the four giants, ranking first among local brands. The 12-14-year deduction of non-net profit of McGrady Industries is 35.27 million yuan, 39.45 million yuan and 45.08 million yuan respectively, with an average annual compound growth rate of 13.06%. From 15 to 17, McGrady Industries promised to deduct non-net profits of 51.5 million yuan, 58.5 million yuan and 71 million yuan respectively, with an average annual compound growth rate of 17.42%.
McGrady Medical mainly deals with remote pathological diagnosis, which has great potential for development in the future. McGrady Medical was founded in 1983, specializing in digital pathology remote consultation, cancer screening, pathological diagnosis. By the end of 14 years, McGrady Healthcare had total assets of 47.7317 million yuan, net assets of 20.3713 million yuan, sales income of 49.2429 million yuan and net profit of 10.7176 million yuan in 2014. The company cooperates with the Health and Family Planning Commission to establish the "China Digital Pathology remote diagnosis and quality Control platform". The platform has 3 regional centers (Peking Union Hospital, West China Hospital of Sichuan University, second affiliated Hospital of Medical College of Zhejiang University) and 20 provincial consultation centers, providing remote pathological diagnosis services to more than 60 hospitals, mainly for oncology consultation. The platform was established in December 2011 and conducted a total of 16247 consultations from December 2011 to July 2013. In 2015, the notice of the Health and Family Planning Commission on expanding the pilot of remote pathological consultation further expanded the scope of remote pathological consultation, selecting 1-3 first-class hospitals in each province as consultation centers, and secondary hospitals can be declared as pilot remote pathological consultation. The telemedicine consultation business of McGrady Medical has been valued by many leaders. Hu Jintao, Chen Zhu, Lu Hao, Wan Gang and other leaders have all visited McGrady Medical on the spot. As the country pays more attention to telemedicine, the telemedicine platform has great potential for development.
Profit forecast and investment advice: based on the equity of 256 million shares after the acquisition of McGrady Industries, assuming that Maddie Industries began to consolidate in May, we expect the company's EPS from 2015 to 2017 to be 0.24,0.42,0.48 yuan respectively, an increase of 66%, 70% and 15% respectively over the same period last year. We believe that the reasonable stock price is 38.00 yuan, corresponding to 158,90,79 times of PE in 15-17 years.
The main uncertainty: whether to integrate McGrady Healthcare is uncertain.
