Ke Rong Medical Service is the third largest provider of medical, promotion and channel management services in China's medical profession, accounting for 6.4% of the market. According to Frost Sullivan's report, China's medicine, promotion and channel management service market is part of China's medical circulation market. in 2014, the market regulation model was 149.598 million yuan, accounting for about 1.0 percent of China's medicine circulation market. The company is also the only supplier of marketing, promotion and channel management services for blood products in China. According to Frost Sullivan's report, the compound annual growth rate of China's blood products market from 2010 to 2014 was 23.2%, which was higher than that of China's overall medicine market and imported products market in the same period. Due to the shortage of blood products, favorable government measures, market development and technological improvement campaigns in China's manufacturing industry, according to Frost Sullivan's report, the blood products market is expected to grow at a complex annual growth rate of 22.4% from 2015 to 2019.

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The company is in charge of

(1) Cluster is the third largest supplier of medical services, promotion and channel management services in China, and the only related service provider of imported blood products; (2) provide a combination of multi-product products; (3) the company provides popular and popular marketing, promotion and channel management services for imported products. (4) to use a flexible and effective subscription and promotion service model, supported by a strong network and rich clients and promoters.

Overview of the industry

With economic growth, China's medical and health care expenditure increased rapidly at a complex annual growth rate of 15.3% from 2010 to 2014. It is expected that the double-digit growth rate will be maintained at a compound annual growth rate of 11.9% from 2015 to 2019. China's per capita expenditure on medical and health care has also rapidly increased from 1490.1 yuan in 2010 to 2581.7 yuan in 2014, with a compound annual growth rate of 14.7 percent. It is expected to reach 4456.3 yuan in 2019, with a compound annual growth rate of 11.3% from 2015 to 2019. Despite China's rapid growth and the second largest economy in the world, the total expenditure on medical and health care ranks second in the world, but in terms of per capita medical and health care, China only ranks 93rd in the world, and in 2014, the total expenditure on medical and health care accounts for only 5.6% of the country's gross domestic product.

The Chinese medical market is measured by health care institutions and retailers according to the critical value of the products determined in the process of centralized recruitment. The Chinese medical market is a part of the Chinese medical profession. From 2010 to 2014, the compound annual growth rate of China's medical market was 19.1%, and the expected annual growth rate from 2015 to 2019 was 14.7%, exceeding the expected growth rate of the total domestic product of famous countries.

China's imported medical market increased from 408 yuan in 2010 to 80 billion yuan in 2014, with a compound annual growth rate of 18.3%. It is expected that the annual growth rate from 2015 to 2019 will increase to 1689 billion yuan at a compound annual growth rate of 16.0%, which will exceed the expected compound annual growth rate of 14.7% in China's overall medical market for the same period. As far as the import market is concerned, as small and medium-sized commodity companies (that is, those other than the 50 largest manufacturers by revenue (including the company's current suppliers, such as Costco, Gummy, Fosco and Fosco), are able to provide more affordable products in China, it is expected that the products produced by small and medium-sized companies will grow at a compound annual growth rate of 16.2% from 2015 to 2019. The compound annual growth rate is higher than the expected annual growth rate of 15.8% for products produced by large manufacturing companies.

Profit ability and duty number

The income of the market increased from 261 million people in 2012 to 950.1 million people in 2014, with a compound annual growth rate of 503.3%. The annual growth rate was 2142.5%, which increased from 138,000 people in 2012 to 694 million in 2014. Sales earnings and profits have been rising during the operating cycle, mainly due to the continuous increase in demand for the company's products and the non-compliance of operating standards in the past.

Collection purpose

The proceeds from this collection will be used for the following purposes: about 45% will be used for receiving sales and trading rights of new products, and receiving banks will have intellectual property rights or growth capabilities; about 33% will be used for loan reimbursement and bank trust; and about 14% will be used to develop cold storage facilities and research and development bases in Sichuan province. About 8% is used for general financial assistance.

Valuation

According to the IPO price / earnings ratio of HK$0.80 to 1.11, the forward price-to-earnings ratio and price-to-market ratio are 15.8-22.0 and 3.48-3.58, respectively. The historical P / E ratio and P / E ratio of 8058.HK, 503.HK and 874.HK are 11.6x and 2.2x, 8.1x and 1.0x, 14.2x and 2.2x, respectively. The stock market has grown rapidly in recent years or attracted the attention of the market, but the growth rate has slowed sharply in 2015, and its performance has changed rapidly soon after the listing of new shares, so it is only appropriate for us to invest in investment.

Negative factor

(1) the company's failure to maintain its relationship with existing suppliers or their sales agents or to increase the number of suppliers may have a significant adverse effect on the duties, conditions and experience of general medicine; (2) the new guidance quality control mechanism has an uncertain effect on the product quality provided by general medicine. (3) the rate of US dollars or dollars may affect the cash flow, operating conditions and operating expenses of the general medical profession. (4) if the Protection catalogue or the essential goods Directory does not include the current products of the company's product assembly after repair, or if the products added to the product assembly in the future are not included in the Protection Directory or the basic inventory catalogue, the company's operations, operating conditions, performance and prospects may be significantly adversely affected.