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【华泰证券】中珠医疗:全方位打造专业的肿瘤生态管理平台

華泰證券 ·  Sep 21, 2016 00:00  · Researches

The comprehensive layout of the entire oncology value chain opens up room for growth in the company's market capitalization. In 2015, the company firmly transformed the medical and health sector. Through the acquisition of integrated medical care, making full use of its many years of experience in the field of oncological disease services, the company entered the full value chain of tumor disease services, including early cancer screening (liver cancer, breast cancer, etc.), tumor treatment (characterized by radiotherapy), and tumor rehabilitation (combined with real estate and medical care), forming a unique oncology ecosystem management platform to meet residents' long-term suppressed needs in the field of oncology, outlining the company's future growth blueprint and promoting rapid growth in the company's performance in 2016-2018. $353 million, 517 million, and 705 million (the medical sector contributed $153 million, $317 million, and $505 million). The corresponding EPS was 0.50, 0.73, and 0.99, respectively. The rapid growth in the company's performance over the next three years will also drive a steady increase in the company's market value. It is estimated that the company's market value will probably reach 28.33 billion yuan in 2018, and the target price for the next 12 months is 33-37 yuan, covering the “buy” rating for the first time. Develop advanced technology to meet the needs of residents for early cancer screening, which has been suppressed for a long time. From past experience in diagnosis and treatment to the development of accurate diagnosis and treatment in the future, diagnostic technology will be critical, especially the early screening of major diseases (such as tumors), which can not only significantly improve the survival rate of patients, but also significantly reduce the burden on patients and countries. To this end, the company is targeting early screening of major cancers (such as liver cancer), and promoting equipment (cirrhosis ultrasound detectors) to various scenarios in residents' lives (hospitals, communities, pharmacies, public places, etc.) to meet their long-term suppressed demand for early cancer monitoring in a cheaper, more convenient, and more effective way, to help them achieve self-health management and control disease risk while also being the company's C-terminal entry point. Currently, the promotion of cirrhosis ultrasound detectors outside hospitals is progressing very smoothly. In addition, the phased array radar breast imaging system that the company focuses on building (probably the first in the world) will be an ideal device for early screening for breast cancer, and is expected to be launched in 2018 to bring good news to women across the country and even around the world. Build a medical consortium focusing on the characteristics of the Zhongzhu radiotherapy brand. Hierarchical diagnosis and treatment will follow the general trend in our country. The medical consortium will be the best model for implementing hierarchical diagnosis and treatment, while the Internet + will make it easier to implement hierarchical diagnosis and treatment. Therefore, the company will use its capital advantages to rapidly expand the offline entities of the medical consortium (currently there are 30 oncology centers, and 100 oncology centers and 30 cancer hospitals will be built in the next 3-5 years); it will also use the Internet to provide medical resource support (currently, 22 domestic radiotherapy industry leaders, including Wang Junjie, to provide services in the field of radiotherapy, including remote teaching, expert consultation, planning, remote intelligent control, etc., and in the future, it will also gradually expand diverse services such as pathology reading, joint consultation, and surgery by famous doctors); it will also use the experience of more than 10 years of experience in operating cancer treatment centers to build talented Chinese medicine brands Consortium (featuring radiotherapy, surgery, drugs, and other cutting-edge therapies, focusing on cancer diseases such as liver cancer and breast cancer that can be linked to the company's tumor testing service system). Using capital to build a professional cancer ecosystem management platform, the company is confident about the future. Previously, the company was a combination of medicine and real estate (real estate dominates). In the future, the company will firmly transform to a professional cancer ecosystem management platform, so it will resolutely outline the company's future growth blueprint through industrial mergers and acquisitions in all aspects of the entire cancer business chain, from testing, treatment, and rehabilitation. However, the company is optimistic about the future development of the company from major shareholders, the chairman of the board of directors, core executives, middle level employees, the chairman of integrated medical care, and core executives, and the firm acquisition of company shares through fixed increases (650 million, participation of 50%, 1748 yuan), increase in holdings, employee stock ownership plans (total 900 million, 185 million employees, currently 16.33 yuan), and mergers and acquisitions (total exchange of shares of integrated health care, 1453 yuan), etc., shows confidence in obtaining the company's shares. Risk warning: The progress of business promotion is lower than expected, and the progress of mergers and acquisitions is lower than expected.

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