Main points of investment
Matter: participate in Shanghai Renxin Health Management Consulting Co., Ltd. On May 31, 2017, the company signed with Lingnan Investment Co., Ltd., Shanghai Renxin Health Management Consulting Co., Ltd. (target company) and Feng Jianguang, the existing shareholder of the target company, "Lingnan Investment Co., Ltd., Guangdong Jinming Seiki Co., Ltd. an agreement to increase capital to Shanghai Renxin Health Management Consulting Co., Ltd." The company intends to participate in Shanghai Renxin with its own capital of 5 million yuan, of which 195300 yuan is included in the registered capital and 4.8047 million yuan in the capital reserve. After the completion of this capital increase, the registered capital of Shanghai Renxin increased to 1.5625 million yuan, and the company holds a 12.50% stake in Shanghai Renxin.
Peace viewpoint:
Aims to create a medical rehabilitation business ecological circle: "Health Jinming" is one of the important strategic directions for the company's future development. In July 2015, the company and Tsinghua University signed the Agreement on the Joint Research Center for Rehabilitation Robots jointly established by Tsinghua University and Guangdong Jinming Precision Machinery Co., Ltd., marking the company's official entry into the service robot and medical and health industry. The purpose of the company's participation in Shanghai Renxin is to create a rehabilitation business ecosystem, make full use of their respective platforms and resource advantages, give full play to business synergy, and jointly develop the rehabilitation pension market. Shanghai Renxin's main business is to provide comprehensive solutions for the pension and health industry, including research and consulting, planning and design, operation and management, personnel training, promotion and promotion.
In the future, Shanghai Renxin is expected to become an important front position to open the market channel of the company's rehabilitation robot products.
The industrialization of rehabilitation robot has been put on the agenda: in December 2016, the company formally signed the contract for the industrialization Technology Development (entrustment) of Neural Rehabilitation Robot with Tsinghua University. put the industrialization of the upper and lower limb neural rehabilitation robot project on the agenda. At present, there are more than 86 million disabled people and nearly 200 million elderly people in China, and there is a huge demand for rehabilitation robots in the future. Jinming Seiki is a company that laid out rehabilitation robots earlier in China, and it has occupied a certain first-mover advantage in technology.
Investment suggestion: the development prospect of China's rehabilitation medical industry is huge, the company takes the lead in the layout in the field of rehabilitation robots, and strives to build a business ecological circle, the future prospect is promising. In addition, the company's main film machinery sales are gradually picking up, the company relies on its own advantages to enter the high-end film market, is expected to significantly improve the company's profitability. We judge that 2017 will be an important turning point for the company. It is estimated that the company's EPS from 2017 to 2019 will be 0.34 yuan, 0.44 yuan and 0.58 yuan respectively, and the price-to-earnings ratio of the previous share price will be 49 times, 38 times and 29 times respectively, maintaining the "recommended" rating.
Risk hints: (1) the market development of the target company is not as expected; (2) the industrialization process of rehabilitation robot is not as expected.