Rich experience in medical device production, rigorous quality assurance and cost-effectiveness. Yongsheng Medical is the first medical device group headquartered in Hong Kong. It has been operating for more than 19 years and has accumulated rich experience and expertise in the production of medical devices that meet international standards. At the same time, the company also attaches great importance to quality assurance. Yongsheng Medical has a quality management system established in accordance with international standards and strictly implements the system in many aspects to ensure that the medical devices produced meet the standards and the stringent requirements of customers. In addition, while maintaining high quality, the company also pays great attention to cost-effectiveness, through the design of production processes, selection of raw materials and the use of automated processes to maintain an effective cost structure, combined with high-quality products, it brings pricing and competitive advantage to the company.
Strong international OEM customer base. The company has established a good strategic relationship with local leading health care and medical device companies in Europe, the United States and Japan. These relationships can provide the company with information on industry trends, market developments and the latest technology, greatly enhancing the company's resilience in the ever-changing medical device market and helping to withstand market fluctuations. In addition, Yongsheng Medical has maintained a 10-year business relationship with many major customers. Before a company becomes an approved supplier to its customers, it usually goes through a long and stringent quality review process. The adoption of the relevant procedures has increased many customers' recognition of the company's product quality and company philosophy, thus establishing a long-term and stable relationship and enabling the company to maintain a stable source of income.
China is a leader in the production of respiratory and anesthetic disposable products. The company is a pioneer in the manufacturer of respiratory equipment in China. Yongsheng Medical has 19 years of experience in the development and production of respiratory devices, has a first-mover advantage in the domestic production of respiratory and anesthetic disposable products, and is China's second largest exporter of respiratory and anesthetic disposable products by export value in 2015. The products supplied by the company are not only of high quality, but also most of the international medical device brands are suitable, which are widely recognized by the market. In addition, the company has a large distribution network, covering 28 provinces in China and many countries such as Australia, Japan, Indonesia, Chile and Brazil, and is expected to continue to expand its market share in the future. maintain a leading position in the respiratory and anesthetic disposable products industry. At the same time, as the company's main business OEM market gross profit margin has been low (25-30%), the company can take advantage of the huge distribution network to focus on expanding the OBM business with higher gross margin (38-45%) to optimize the revenue structure.
It is recommended to subscribe carefully. We believe that Yongsheng Medical, as a leading medical device R & D and production company, has specific operating concepts and strategies to maintain competitiveness and pricing advantages while maintaining product quality and strike a balance between revenue and quality. In addition, the company's revenue has grown steadily for three consecutive years, with turnover reaching HK $448.2 million in fiscal 2015, up 15.2% from a year earlier, and a reasonable valuation of a price-to-earnings ratio of 12.1-15.2 times 2015. Therefore, we recommend careful subscription.