Event: on December 18, 2015, Guangdong Shunde Vcanbio Gene Technology Co., Ltd., a wholly-owned subsidiary of Vcanbio Genome Technology Co., Ltd., a wholly-owned subsidiary of the company's holding subsidiary, received the "Medical Institution practice license" issued by the Health and Family Planning Bureau of Shunde District, Foshan City. can professionally carry out medical laboratory: clinical cytomolecular genetics and other clinical testing projects. The validity period is from December 18, 2015 to December 17, 2020. Through the professional operation mode, the company's subordinate companies will provide medical testing services with complete projects and reliable results, so as to further promote the development of the company's genetic business.
Comments:
This is the company's second Guangdong Shunde license after Tianjin Gene license. in the future, the company will strive for the layout of East China, North China, Central China and South China to achieve national coverage. We continue to be optimistic about the logic of two-wheel drive of the company's cellular genes, and believe that at this point, it is still recommended.
Summary of recommended reasons:
(1) from the perspective of accurate medical market capitalization, there are greater investment opportunities. As of December 22, 2015, the company's market capitalization of 23.8 billion does not match its leading position, with similar companies Anke Biology 19.1 billion, Xinri Hengli 18.3 billion and Nanjing Xin26.9 billion.
(2) in addition to the stem cell main business that has accumulated abruptly, the company also distributes the longest precision medical industry chain: covering genetic testing equipment, reagents-testing, screening-cell therapy-big data, relying on its own original stem cell main business, Origene, Beike Biology, Collison. The company is based on stem cell storage business and medical testing reagent business in the short term, and develops cosmetics, beauty and health care products and cell preparation business in the medium term. The company is committed to opening up the separate links of the industrial chain and creating a life industry ecosystem. The stem cell owned by the company is the basis of scarce resources, and the company actively extends through M & A funds. In this way, we can expand from stem cells to immune cells, connecting storage, testing, cell therapy, drugs, and the market (we will not rule out the use of Internet + 's thinking to promote it from both online and offline channels in the future).
(3) at the industry level, precision medicine is in the ascendant. China is formulating a strategic plan for "accurate medical care", which aims to achieve accurate disease classification and diagnosis, and formulate personalized prevention and treatment plans. BGI's IPO prospectus on the evening of December 18, 2015 is expected to ignite investment enthusiasm in the industry.
Give a "buy" rating, with a target price of 80 yuan. It is estimated that 2015-2017 EPS 0.30,0.55,1.04 yuan, optimistic about the strategic layout of the company in the field of cells and genes, more optimistic about the extension progress after the establishment of the M & A fund, as we are optimistic that the hot topic of accurate medical treatment will continue to be interpreted, the dynamic PE of the industry comparable company in 2016 is about 100 times, as the company is in the leading position, the extension expectation is strong, give the company a certain valuation premium, target price 80 yuan It has a "buy" rating compared to the PE of 146X in 2016.
Uncertain factors.
(1) the competition of stem cell storage in different places
(2) epitaxial progress.