Main points of investment:
Event: the company released its 2015 results, achieving 2.513 billion in revenue, 91 million in net profit and 71 million in net profit after deduction, up 14.36%, 17.11% and 11.64% respectively over the same period last year, which is basically in line with expectations. Looking forward to 2016, with the continuous expansion of the company's products, the integration of equipment channels, e-commerce operation and strategic transformation, it is expected to usher in high growth and maintain the company's "buy" rating.
Products continue to extend, fully integrate offline and online resources to promote the reform of marketing mode, and transform to a production and service-oriented enterprise. The company's 15 years of steady performance growth, products from traditional, industrial production of large quantities of chemical reagents have been comprehensively expanded to laboratory chemical reagents, laboratory products and services, medical devices, etc., the structure has been optimized. Open up ideas in the marketing mode, build an e-commerce platform to integrate offline resources, launch the company's online "material network" (chemical raw materials online trading, product characteristics of low price and high quality), and integrate the resources of traditional bulk chemical products. strive to create a leading B2B platform for the chemical industry in China. On-line Dr. Mao Lab provides one-stop solutions for laboratory products (reagents, consumables, services) for universities and laboratories to catch long-tail customers and meet the needs of different customer groups such as "more varieties, fewer batches". In the field of devices, the company has set up Xilong Medical to build a national high-end medical device logistics and distribution service provider, which has contributed profits to the company for 15 years. This year, the company will continue to integrate sales and distribution agency channels in medical devices, becoming an important pole of the company's performance growth. During the reporting period, the total antioxidant status (TAS) test kit (FRAP method), a new product used for health examination and clinical diagnosis, officially entered the medical service market, enriching the product line of in vitro diagnostic reagents and enhancing the competitiveness of in vitro diagnostic reagents business.
Promote the transformation and enter into the field of genetic testing. The company invested in American Fulgent and set up a domestic genetic technology subsidiary to enter the frontier field of genetic testing, which not only enriches the products of in vitro diagnostic reagents, but also creates a new profit growth point for the company. The American Fulgent company has excellent qualifications, and its advantages lie in its authority (high recognition), wide coverage of testing quantity and low cost. The company plans to set up a third-party medical laboratory, integrate existing resources, take neonatal genetic testing as a starting point, and gradually enter the field of detection of cancer and rare diseases, and promote and operate the business of genetic testing and diagnosis in China, to inject impetus for long-term development.
Valuation rating: the company actively promotes the reform of marketing mode, integrates offline resources, integrates equipment channels to improve performance, actively goes deep into in vitro diagnosis, enters the field of genetic testing to promote strategic transformation, and is optimistic about the company's long-term development. It is estimated that the EPS for 16-18 years will be 0.66,0.81,0.96 respectively (0.26,0.32,0.38).
Risk hint: the progress of medical device channel integration is lower than expected, and the speed of gene testing layout is lower than expected.
