The company's operating income continues to grow: the new venture originated from the listing on the gem in 2010, and its main business is the R & D, production and sales of excipients PVP (polyvinylpyrrolidone) series products. The company is the first in China and the third in the world in PVP industry. In 2015, the company achieved an operating income of 202.4923 million yuan, an increase of 59.69% over the same period last year, an operating profit of 49.3749 million yuan, an increase of 64.98% over the same period last year, and a net profit of 42.6372 million yuan belonging to the parent company, an increase of 64.8% over the same period last year.
Steady growth of PVP business: the company's PVP series products are widely used in daily chemical industry, pharmaceutical industry, wine and beverage industry, pigment paint, textile industry, paper industry, oil production, photosensitive materials and electronics industry and other fields. The PVP consumption market will continue to grow in the future, and the global market size will reach 6.5 billion yuan in 2020. In the next 3-6 years, nearly 20, 000 tons of new markets will be added to PVP's emerging areas.
Layout precision medical field: the acquisition of three subsidiaries, Wuhan Hull, Changsha Sanji and Shanghai Jingneng, was completed at the end of August 2015. Hull Medical is mainly engaged in early tumor diagnosis services, Sanji Biology is committed to molecular diagnosis and individualized treatment services, and Jingneng Biology is engaged in gene diagnosis services, which marks the company's entry into the dual-platform model of "consumer specialty chemicals" and "health care services". Further expand the development and growth space of the company.
Participate in the national key project: Sanji Biology, Peking University and other five units jointly participated in the national key R & D program precision medical research key project "Pharmacogenomics and Chinese accurate Drug use Comprehensive Evaluation system". In order to better accomplish this special task, the company plans to increase capital to set up Beijing New Open Source Precision Medical Technology Co., Ltd. to cooperate with the implementation of the project, the joint cooperation of the two companies will enable the new open source to open up the whole industry chain of precision medical research from laboratories to hospitals to pharmaceutical companies.
Profit forecast and investment rating: it is predicted that the operating income of New Open Source (300109) from 2016 to 2018 is 449 million yuan, 575 million yuan and 725 million yuan respectively, and the net profit attributable to the parent company is 111 million yuan, 160 million yuan and 208 million yuan respectively; equivalent to 2016-2018 EPS is 0.65 yuan, 0.94 yuan, 1.22 yuan respectively; the corresponding PE is 83, 57 and 44 times, respectively. We are optimistic about the company's traditional PVP business, as well as the layout of accurate medical areas such as early tumor screening, molecular diagnostic services, and gene sequencing services, and we maintain our "overweight" rating.
Risk tips: industry policy risk, bidding price reduction risk, medicine price fluctuation risk and so on.
