Events:
The company announced that it invested 200 million yuan to set up a joint venture with the Yizhang county government to set up a project company, which accounts for 83.33% of the shares and is responsible for the overall relocation of Yizhang County traditional Chinese Medicine Hospital.
Comments:
Integrate resources, transform to an integrated service company, and maintain an overweight rating. POCT and other new products are still in the investment period, the original vascular collection business is affected by bidding price reduction, short-term company performance is still under pressure, maintaining 2016-18 profit forecast EPS0.14/0.17/0.19 yuan. The company actively develops new business, lays out the fields of medical informatization, medical service management and genetic testing, and overseas actively seeks strategic targets, enhances its long-term competitiveness, maintains its holding rating, considers the company's forward-looking layout in hot areas, and gives a certain premium to maintain the target price of 19.97 yuan.
The P2P project of Yizhang County Hospital of traditional Chinese Medicine has been gradually promoted. The overall relocation project of Yizhang County traditional Chinese Medicine Hospital is the company's first medical P2P project, with a total investment of 300 million, a new second-class hospital with 600 beds, 300000 outpatients and 30, 000 discharges per year. At present, the bidding work of the project has been completed, and the establishment of a joint venture project company with the government through a supplementary agreement will help to clarify the legal and financial subjects of the project, bind government investment, speed up the promotion of the project, and explore new business at the same time. The registered capital requirements of both sides will be in place within 90 days, and the project is expected to move forward soon.
P2P model explores the medical service industry. According to the agreement between the company and Yizhang county government, the future project company's income model includes: 1) stable operation and management fees, calculated according to the amount of capital contributed, the standard is a five-year benchmark loan interest rate rising by 20%. 2) the income of the exclusive supply chain management right, including drugs, consumables, equipment and logistics, etc., Yizhang traditional Chinese Medicine Hospital project, which includes 10 years of operation of the old hospital and 30 years of operation of the new hospital. The co-construction of the trusteeship hospital implements the modern hospital management model, and the company plays a leading role. Stable management fee + supply chain management model, the company obtains stable operation and management profit returns, but also brings a sales outlet for self-produced and agency products. We estimate that after the completion of the project, the ROE will exceed 10%. Under the promotion of graded diagnosis and treatment, the number of visits will increase and the return will gradually improve.
The company is actively expanding new business and looking for new increments overseas. The company actively expands new business: (1) acquire Guangzhou Huiqiao computer Technology Co., Ltd., layout medical information; (2) sign PPP cooperation framework agreement with Chenzhou third people's Hospital and Yizhang County traditional Chinese Medicine Hospital to enter the field of medical services; (3) set up a medical testing company to carry out gene testing business. In 2016, the company focused on strategic extension and actively sought opportunities for mergers and acquisitions at home and abroad. At present, a relatively perfect M & A process and a certain scale of project library in line with the company's development strategy have been established, and project selection and negotiations are under way.