Main points of investment
Recently, Shangrong Medical released its 2016 annual report, which showed that during the reporting period, its operating income reached 1.946 billion yuan, up 16.79% from the same period last year; the net profit from its parent was 114 million yuan, down 4.12% from the same period last year; and the net profit from non-parent was 103 million yuan, down 10.60% from the same period last year. At the same time, the company released its quarterly report for 2017, with operating income of 598 million yuan in the first quarter, an increase of 18.27% over the same period last year, a net profit of 53 million yuan, an increase of 12.90%, and a non-return net profit of 51 million yuan, up 6.97% over the same period last year. In addition, the company forecasts a net profit of 9153.67-116.5013 million yuan from January to June 2017, an increase of 10% over the same period last year.
Profit forecast and rating: under the background of the restructuring of public hospitals, on the one hand, in terms of the overall solution for hospital construction, the company's orders are expected to grow rapidly, on the other hand, the company will also make full use of this opportunity to rapidly expand the scale of medical service resources through PPP and other models. On the basis of the continuous expansion of hospital channels, according to the established development direction, we expect that the company will actively extend to the upper reaches of the industrial chain through extension, and make a rapid layout in the production, marketing, logistics and distribution of drugs, equipment, consumable materials, and logistics and distribution. in order to make full use of its hospital channel value and achieve rapid performance growth through supply chain management. The active participation of major shareholders and strategic investors in the IPO also demonstrates their confidence in the development of the company. with the gradual improvement of the layout of the platform, the company's future expansion in areas such as mobile medicine, telemedicine, supply chain management is also worth looking forward to. We estimate that the company's EPS from 2017 to 2019 will be 0.30,0.38,0.49 yuan respectively, and the corresponding PE will be 54,43,33 times respectively. We believe that the company's hospital is rich in channel resources and is gradually transforming from medical construction to a comprehensive medical service platform, maintaining its "overweight" rating.
Risk tips: buyer credit risk; accounts receivable recovery risk; project contract can not be performed on time risk; M & An integration risk.
