Main viewpoints
1. The leading domestic medical service company, the first third-class hospital in the group is about to emerge. The company has controlled eight second-level general hospitals and specialist hospitals, one oncology diagnosis and treatment center with income rights, one medical examination hospital and four hospitals under construction, with 9250 beds approved, including 12000 under construction. At the same time, participate in the industrial M & A fund to increase the M & An and cultivation of potential medical service targets. Medical service adheres to the development concept of "college, strong synthesis" focusing on tumor diagnosis and treatment, high-end gynaecology and obstetrics, and establishes a professional, refined and collectivized management model by giving full play to the function of the company's support platform and synergy. Set up a hospital management center, rely on professional hospital management experts and subordinate hospital directors to co-ordinate the operation and management of subordinate hospitals; centrally manage and optimize the procurement of medical equipment, drugs, consumables and non-medical materials, give full play to the collaborative advantage of large-scale procurement. In 2016, the operating income of medical services was 1.193 billion (+ 79.82%). Today, the company announced that it intends to acquire no less than 70% of the shares in Maanshan Central Hospital, which was founded in 1938 and is a non-profit three-class comprehensive company formed from the overall restructuring of the former Maanshan Hospital. Open more than 1200 beds, if the acquisition is successful, the third-class hospital will come in, it will be a qualitative leap, will certainly promote the development of other hospitals in the group.
two。 Rapid layout of third-party medical images, internal connectivity will enable external service companies to set up doctors' groups and medical imaging centers, cut into the telemedicine diagnosis business, and gradually realize the connection and sharing of medical image diagnosis among subordinate hospitals. Shanghai Renying Medical Image was established in August last year. At present, the monthly access volume has exceeded 500 pathology. At the same time, Renying Imaging and Imaging equipment Company Aotai Medical has set up a joint venture company, which will rely on Hengkang hospitals to establish a regional third-party medical imaging center. In addition, it is proposed to acquire PRP, a leading Australian medical imaging company, to form a linkage of medical imaging diagnosis at home and abroad, introduce Australia's advanced imaging diagnosis technology and experience into China, and form complementary advantages, which has laid a solid foundation and technical strength for the continuous development of independent medical imaging centers in China. After realizing the internal connection, the external profit business will be carried out quickly.
3. Investment advice:
It is estimated that the net profit from 2017 to 2019 will be 4.86 million yuan (584 million yuan), corresponding to 0.31 yuan (EPS 0.31) and 0.39 times of PE (45-37-30), giving it a "highly recommended" investment rating.
4. Risk Tips:
Risk of price fluctuation of prepared pieces of traditional Chinese medicine
