Wanfang develops and builds a mobile platform for the whole process of hospital diagnosis and treatment, with the goal of covering 60% to 70% of the third-tier first-class hospitals in Sichuan by the middle of next year, and is expected to achieve cross-provincial expansion by combining resources with extension. On the basis of the formation of a regional unified hospital entrance, the company has a huge space to realize its value.
Create a mobile platform for the whole process of hospital diagnosis and treatment: Wanfang Development acquires a 40% stake in YiFang Medical. Yi Fantasy Medical provides hospitals with the construction and operation of public wifi and Wechat public platforms. Different from the usual Wechat official account, the Wechat public platform built by Yixiang is actually the extension of the hospital HIS system to the mobile and cloud, solving the difficulties faced by patients in the process of registration and the pain point of slow payment. At present, Yifei has already landed mobile registration and clinic payment in West China second Hospital, and the follow-up will be further extended to the hospital PACS,LIS system to enhance registration, prescription circulation, electronic medical record inquiry, payment, medicine collection and other hospital links of patient experience, to create a hospital diagnosis and treatment process mobile platform.
The Huaxi second Hospital model is expected to be copied quickly: policy, product, resources and team will determine the replication speed of the company's Huaxi second Hospital model. On the policy side, the Sichuan Provincial Health and Family Planning Commission has signed a strategic agreement with Wanfang to make it clear that Wanfang is the priority partner in the direction of hospital cloud HIS. On the product side, the Wechat public platform of the West China second Hospital landed in a high profile in the Wechat city service, and its medical environment improved significantly and played a benchmark role. On the resource side, the company is expected to actively carry out cooperation and mergers and acquisitions with HIS manufacturers to further strengthen the hospital penetration capacity. As for the team, Yi Fang has strong Internet genes, and has been working in West China second Hospital for four years, and is well aware of the hospital information system and interest pattern. At present, the number of newly signed hospitals in the company is rapidly approaching 10, including two third-class and first-class hospitals newly recommended by the Health and Family Planning Commission. The company aims to cover 60% to 70% of the third-class hospitals in Sichuan by the middle of next year, about 30 to 40 in size. Due to the high stickiness of users in tertiary and first-class hospitals, the increase of the company's permeability in tertiary and first-class hospitals is expected to lead to an explosive growth in the number of docking hospitals.
It is expected to achieve cross-provincial expansion by the combination of resources and extension: the company's hospital cloud HIS business needs local policy support, hospital resources, medical information system construction capabilities and other core conditions to achieve cross-provincial expansion. We expect the company to have a certain upper-level resource base in other western provinces and the capital operation conditions to obtain local hospital resources and medical information system by extension. In Sichuan, the company signed a strategic framework agreement based on cloud HIS and digital mouth with the Provincial Health and Family Planning Commission, which respectively met the demand for medical resources for the innovative business of Yixian and Zhi Xiang, reflected Wanfang's ability to grasp the core demands of the target company, and supported the company to realize cross-provincial expansion by combining resources with extension.
The regional unified hospital entrance has great value realization space: compared with the hospital self-built APP model, the leadership of Wanfang model lies in that, as a channel connecting Wechat and the hospital, on the one hand, it naturally connects the most powerful C-side user entrance, on the other hand, it realizes the unity of the hospital entrance. For individual users, the unified hospital entrance significantly improves the user experience and is conducive to the establishment of user habits. For hospitals, a unified entrance can overcome the weakness of low-frequency application of medical services, and overcome the lack of activity with the breadth of patient coverage. At the same time, the regional unified hospital entrance is easier to carry the subsequent graded diagnosis and treatment, prescription circulation, health data operation and other models, which has a huge value realization space.
Maintain the "highly recommended-A" investment rating. It is estimated that the earnings per share from 2015 to 2017 will be 0.01,0.05,0.08 yuan respectively, and the corresponding PE will be 336226 times. Considering the leadership of the company's business model and subsequent extension expectations, give a strong recommendation-A rating, raise the target price to 30.08 yuan.
Risk hint: the progress of hospital promotion is not as expected and the progress of extension is not as expected.