Events:
On the evening of November 13th, the company announced a major asset purchase plan: Langma Information and Medical Management Group increased capital to six Medical companies, of which, Langma Information contributed about 155.2941 million yuan in cash, and Medical Management Group contributed about 80 million yuan in net assets after the restructuring of Guiyang six Medicines (subject to the final evaluation results). After the capital increase, Langma Information holds 66% of the equity of six Medical companies, and Medical Management Group holds 34 percent of the equity of six Medical companies. The six Medical Company has become the holding subsidiary of Longma Information.
Comments:
The company intends to acquire offline physical hospitals, and the strategic direction of Internet medical care is determined. The company's strategic development of Internet health care mainly stems from: on the one hand, the company's main phone-to-phone business was hit by Wechat and Momo Inc, which fell 19% in 2014 compared with the same period last year, and is expected to continue to shrink in the future; on the other hand, with the accelerated aging of China's population, the number of patients is increasing, and domestic medical resources are scarce, so Internet health care is expected to usher in major development opportunities and broad space for the future.
The layout of the Internet medical industry chain is of great value in the future. Aware of the opportunity of combining the Internet with traditional industries, the company chose "Internet + Medical and Health" as its future business development direction, and laid out the industrial chain around the three elements of "user entrance, medical resources and big data". The acquisition of physical hospitals is an important part of the company's Internet medical industry chain layout, and we believe that Internet hospitals will be the core carrier of Internet medical business in the future. In addition, in June 2014, the company acquired 39 Health Portal, the largest health portal with the largest number of content and users; in May 2015, the company partnered with Baidu, Inc. to carry out Internet secondary diagnosis services for critical and difficult diseases based on its brand and traffic advantages. 39 Health Network and Baidu, Inc. traffic occupy online user entrances and big data, and physical hospitals provide offline medical resources. the company is building an Internet medical system covering health information services, health management, drug services and Internet hospitals, which is of great value in the future.
To create an Internet medical O2O platform, the core advantages are prominent. At present, the company has an orderly layout in the areas of Internet access, big data technology, medicine, doctors, medical testing services, and so on. The hospital acquired this time is the core asset of Internet medicine, and the company can rely on the qualification of physical hospitals to create an Internet hospital platform covering the combination of online and offline, and carry out online and offline diagnosis and treatment and health management services. Because the company has a physical hospital, it has the qualification of online consultation, once the channel is opened, the offline medical resources will have a strong competitive advantage in the Internet medical market. Therefore, in the future, the company is expected to fully grasp the information of doctors, patients and drugs, build a complete Internet medical O2O closed-loop system, and show its core advantages.
A good policy environment helps the smooth implementation of the company's Internet medical strategy. The proposed acquisition company Guiyang Liuyi is a second-class first-class general hospital under the Guiyang Health and Family Planning Commission. The government supports hospital restructuring and encourages the development of Internet medical care. We believe that the acquisition of the company has received strong support from the government, which is conducive to the smooth implementation of the Internet medical strategy. In 2015, the company won the third batch of municipal subsidy funds to support industrial and information development, "healthy big data Industrial Development funds", and 5 million yuan of synchronous funds for Guiyang High-tech Zone. The company received a total of 10 million yuan from the government subsidy on September 29th, 2015.
We believe that with the continuous improvement of the degree of aging in our country, the number of patients is increasing, and the traditional medical resources are scarce, so the Internet medical market space will be very huge. Through the acquisition of hospitals and relying on the qualifications of physical hospitals, the company carries out O2O diagnosis and treatment and health management services, and creates an Internet medical ecological platform of the trinity of doctors, patients and drugs, with obvious core advantages and full scarcity. Therefore, we are actively optimistic about the future development of the company, and it is estimated that the EPS in 15-17 years will be 0.23,0.29,0.36 yuan respectively, maintaining the "overweight" rating.
Risk hint: the innovation business is not progressing smoothly and the impact of national medical policies.