This report is read as follows:
The company plans to raise an additional 600 million yuan to expand its new business. With the completion of the company's product upgrade and the gradual landing of the project, it is expected to usher in a performance recovery and maintain an overweight rating.
Events:
The company announced a non-public fixed increase plan, which intends to issue no more than 60 million shares to no more than 5 targets, and plans to raise 600 million yuan for five projects such as liquid biopsy specimen collection tubes.
Comments:
The company's new business has gradually landed, actively layout to find new increments, and maintain the overweight rating. Maintain the 2016-18 profit forecast of EPS 0.12, 0.14, and 0.17 yuan. The company's new business has gradually landed, and the original business has basically completed the adjustment. In 2017, it is expected to usher in a performance recovery, maintain the target price of 17 yuan, and maintain the overweight rating.
There will be an increase in the number of new businesses. About 350 million of the funds raised were invested in the production line construction of three new products: liquid biopsy specimen collection tube + thromboelastogram detection system + intravenous indwelling needle. At present, the three projects are in the stage of product registration and are expected to be landed in batches in the second and third quarters of 2017, and capacity construction will be completed in 2018. Among them, the liquid biopsy sample collection tube is the first in China, with high technical barriers, the price is expected to reach 100 yuan per branch, the demand is accompanied by the rapid release of tumor fluid biopsy, and the demand is expected to exceed 1 million. The future listing is expected to achieve rapid increase through the company's existing vascular collection channels. 200 million funds have been raised for the PPP project of Yizhang County traditional Chinese Medicine Hospital. At present, the project has won the bid and a hospital management company has been established.
Performance is expected to recover. The original agent sales business adjustment and new project development, the company has experienced 2 years of performance adjustment. At present, the adjustment of the old business is basically over, and some new businesses are expected to contribute to the increment in 2017: ① acquires Huiqiao in Guangzhou to enter medical informatization, benefiting from the construction of graded diagnosis and treatment system, which is expected to maintain 20% + growth in 2017; in the ② Hospital PPP project, Yizhang County Hospital of traditional Chinese Medicine has signed an agreement and set up a joint venture hospital management company, which is expected to start supply chain trusteeship for the old hospital district in 2017. In the ③ POCT series, ovulation detectors and fluorescent immunoanalyzers have obtained registration certificates and began to launch to the market. The company is also actively looking for extension cooperation opportunities in clinical diagnosis, imaging and anesthesia care.
Risk hints: uncertainty of new business development; risk of price reduction by bidding for blood vessels; extension is lower than expected.