Main points of investment
Event: on November 16, 2016, the company issued an announcement to sign a "Cancer radiotherapy Center Cooperation Agreement" with Harbin Jiarun Hospital (hereinafter referred to as "Jiarun Hospital") to establish an "Cancer radiotherapy Center".
Continue to expand and establish a new tumor radiotherapy center: Zhongzhu Medical is committed to building the tumor industry chain, its business scope includes real estate, tumor medical devices, oncology and radiotherapy centers, as well as the research and development of oncology drugs. Through the signing of the agreement, the number of cancer and radiotherapy centers established by China-Zhuhai Medical Cooperation will reach 36. Through the establishment of the radiotherapy center, Zhongzhu Medical's tumor industry has been further expanded.
Cooperate to set up an oncology radiotherapy center to control costs and ensure physician resources: the cooperation period between Zhongzhu Medical and Jiarun Hospital is 15 years. The agreement stipulates that Jiarun Hospital provides a central computer room and related auxiliary facilities for the radiotherapy center, and hires experts and senior technical personnel. Zhongzhu Medical Co., Ltd. provides 12.25 million yuan worth of radiotherapy equipment, technical support, expert resources and market operation team. This method can reduce the cost of both sides, and the participation of the hospital provides a guarantee for the resources of doctors. The tumor radiotherapy center adopts a cooperative sharing method. During the cooperation period, Jiarun Hospital enjoys 20%, and integrated medical care enjoys 80%. The Cancer Center is expected to become profitable three years after its establishment, bringing new growth points to the enterprise.
In response to the national policy of encouraging social capital to run medical services, actively cooperate with private hospitals: Harbin Jiarun Hospital is a private general hospital. In recent years, the state has actively carried out graded diagnosis and treatment, vigorously supported private hospitals and restricted the development of public hospitals. In response to the national policy, the three newly established tumor radiotherapy centers are all established in cooperation with private hospitals.
Jiarun Hospital was founded in 2004, the hospital doctor resources are rich, hired a large number of Harbin Medical University, provincial hospitals, municipal hospitals experts and professors, hospital management, medical experience, good reputation. The reputation and resources of Jiarun Hospital ensure a certain number of patients. Zhongzhu Medical's advanced radiotherapy equipment and online and offline platforms are also more attractive to patients, and the future profitability of the center is better guaranteed.
Profit forecast and investment rating: we forecast that the operating income of China Pearl (600568) from 2016 to 2018 is 1.5 billion yuan, 2.65 billion yuan and 3.32 billion yuan respectively, and the net profit attributable to the parent company is 217 million yuan, 387 million yuan and 502 million yuan respectively; equivalent to 2016-2018 EPS is 0.31,0.54,0.71 yuan respectively; the corresponding PE is 74,42 and 32 times respectively. Zhongzhu Medical is not only a medical device and pharmaceutical company, its real estate business has continued to rise in recent years. This part of the business can not only bring considerable income for the company, but also provide cash flow for the development of medical devices and medicine. the newly established oncology radiotherapy center is expected to make a profit in three years' time, and active cooperation with private hospitals caters to the national policy. therefore, we maintain the "overweight" rating.
Risk hints: national policy risk; health insurance reimbursement policy risk; uncertainty of business development, lower-than-expected risk of radiotherapy center income