Main points of investment
What happened: a few days ago, we communicated with senior executives about the company's business and future development.
To establish the strategic transformation from "cell" mononuclear to "cell + gene" binuclear. At present, the company is the largest stem cell storage platform in China, and its cell storage business covers 2max 3 territory area and 3amp 4 populated area, and the cell storage capacity has exceeded 300000, which is the veritable "king of cells" in China. The company conforms to the main line of the rapid development of life science and technology of "gene, protein and cell". To increase the future potential core business of "gene" on the basis of "cell" business, the dual-core strategy of "cell + gene" will open up a new space for the company's growth in the field of precision medicine.
Expand the whole industry chain through the "611" model of life science and technology. The company carries on the industrial layout with "611" mode, that is, to break through the whole industry chain of life and health through cell storage, gene clinical testing reagents, anti-aging makeup and beauty products, tumor immunotherapy, pharmaceutical industry, informatization (Internet +) and industrial M & A fund on the basis of cells. 1) the company has the largest variety of stem cell storage in the world, with the latest addition of immune cell storage, which is the best and largest cell storage platform in China. 2) the company is determined to establish five combinations of gene sequencing equipment, testing, reagents, gene interpretation and large database, and to establish a large health spindle with "gene, protein, cell" as the core. 3) Stem cell technology can improve the cosmetic anti-aging effect, and the company will use stem cell technology to launch several cosmetic anti-aging products; 4) in the field of cell therapy, the company plans to acquire Shanghai Collison, the largest immune cell therapy company in the country. Coleson has more than 30 cooperative hospitals in the country, and the cell preparation covers the widest area, with revenue of 221 million yuan and net profit of 38.39 million yuan in the first three quarters of 2015. 5) the company is positioned as a high-end in the pharmaceutical field, only doing innovative drug research and development. In addition, the company established Zhongyuan Pharmaceutical to speed up the research and development of new drugs; 6) in the face of the big health data of precision medical care, the company will achieve networking through cooperation. at the same time, the launch of "life bank card" services, to achieve personal high-end services of all ages. In addition, the company has set up three funds, namely 5 billion M & A fund + 100 million biotherapy public welfare fund + 500 million venture capital fund, to invest and integrate the industrial chain in this way.
The orientation is large, and the expectation of extension expansion is strong. The future pattern of the company is no longer only located in stem cell storage, but will actively open up the whole industry chain around stem cell storage through industrial cooperation and mergers and acquisitions. It will make great achievements in a series of sub-industrial chains, such as gene detection and therapy, innovative drugs, immune cell therapy, beauty and anti-aging, so that the company can not only specialize in cells, but also be more skilled in cells. The company around the double core of the whole industry chain extension acquisition is expected to be strong, the company will strive to become the global "cell king".
Valuation and rating: due to uncertainties in the company's epitaxial acquisition and new drug research and development, we do not consider the performance of future products and acquisition targets for the time being. Due to the full liberalization of the two-child policy and the continuous approval of the construction of the cell bank, we believe that the company's main cell storage business will rapidly expand in the next three years and acquire the performance of Zhicheng Biological thickening Company. it is estimated that the EPS in 15-17 years will be 0.30,0.61,0.98 yuan respectively, corresponding to 215,106,66 times of PE, respectively, and will be given a "buy" rating for the first time.
Risk hints: the performance of mergers and acquisitions may not be as good as promised, and the actual effect of stem cell and two-child policy may not be as good as expected.