Events:
On February 7, 2017, the Kirschner wire products developed by its wholly-owned subsidiary Precifit Medical Ltd have been certified by the US Food and Drug Administration (FDA), namely FDA510 (K). The products are mainly used for human fracture fixation, bone structure reconstruction and orthopaedic implant-assisted fixation.
Comments:
The FDA certification passed, reflecting the company's determination in the field of big health business, mergers and acquisitions do not change the big health transformation strategy, "aluminum processing + big health" double main business strategy is carried out steadily.
The acquisition of FDA certification indicates that Precifit Medical Ltd has the ability to develop, manufacture and establish an international quality system for registered orthopaedic products certified by FDA in the United States, and the products are expected to be sold domestically after passing the certification of China Food and Drug Administration. At the same time, it is expected that other FDA product certification will be launched by Precifit Medical Ltd in 2017, and the layout of the Great Health business will continue to be promoted. In addition, the company increased its capital by 40 million yuan in February 2016. after the FDA registration and certification, the company will make up the remaining 25 million yuan in capital increase, and its shareholding proportion will be increased to 25%.
The strategic layout of "aluminum processing + Great Health" continues to push forward.
Big health business: in addition to medical equipment, the company's big health business will also form a horizontal business layout of "pharmaceutical factory cleaning + hospital cleaning + food cleaning" and vertical "pharmaceutical machinery equipment + general package design + project construction" in the field of cleaning engineering.
Aluminum processing business: Baotou aluminum processing business Baotou "aluminum water-aluminum ingots-aluminum plate and foil" model continues to control costs, Changshu headquarters, Shandong Xinheyuan automotive materials industry chain extends, products begin to change from ton pricing to kilogram pricing, and the added value of the products is improved.
We estimate that the EPS of the company from 2016 to 2018 is 0.21 43x/27 0.49 yuan, respectively, and the current share price corresponds to 43x/27 x / 19 x. The landing of the company's medical device certification is an important promotion of the company's big health strategy, which reflects the company's willingness and determination of the dual main business strategy of "aluminum processing + big health". It is worth looking forward to for the company to continue to go deep into the layout of the big health business in the future. give a "buy" rating.
Risk hint: aluminum price is not up to expectations
