Event
From January to June 2015, the company achieved operating income of 1.452 billion yuan, down 12.33% from the same period last year. The net profit of shareholders belonging to listed companies was 96.14 million yuan, with a basic earnings per share of 0.18 yuan.
Main viewpoints
1. The increase of product gross profit margin and investment income are the main factors to reverse the loss. During the reporting period, the company produced 96000 tons of nylon chips, 36000 tons of nylon filament and 477 tons of nylon cloth. Due to a large drop in the cost of raw materials, the gross profit margin of the above three main products increased by 6.90,3.04 and 10.52 percentage points to 8.74%, 11.17% and 12.97%, respectively. At the same time, receiving the dividends of the participating companies and disposing of the general figures of the participating companies and Bank of Communications's equity income is also one of the reasons for turning around losses, in addition, exchange losses and financial expenses decreased compared with the same period last year.
two。 The transformation is still under way. The company announced on July 22 that it intends to acquire part of the stake in San Medino Medical Technology (Huzhou) Co., Ltd., details of which are under negotiation, and the company currently shares 9.75%. The market for blood glucose monitors is huge. 2014 is the first year of wearable devices. 2015 ushered in a year of take-off. Orders for blood glucose meters in San Medino are growing rapidly. CGM has a huge space in the domestic market. At present, there are 400m patients with prediabetes, 200m patients with cardiovascular and cerebrovascular diseases, and 300 to 400 million people need to be tested. It is estimated that 50 million people will use CGM regularly in the next 3-5 years. Assuming 20 weeks in 52 weeks of a year, this is the annual dosage of 1 billion sensors (7-10 days for one sensor). In addition, in January, Meida announced that it had signed a strategic cooperation agreement with Weigao Group, which mainly included making use of the company's leading advantage in high-grade functional nylon fiber and carrying out extensive and in-depth cooperation with Weigao Group in the areas of huge and stable market demand such as medical protection and quartermaster supplies. Taking advantage of the opportunity to enter the field of dynamic blood glucose monitoring from a high starting point by taking a stake in San Medino, we cooperate with Weigao Group in the fields of wearable medical devices, medical big data cloud platform and medical and health management. We believe that the cooperation between Meida and Weigao Group mainly focuses on the sales channels of its 1500 third-class hospitals, which will contribute to CGM sales in the future. In addition, the two sides also complement each other in other aspects, such as nylon will be used in military protective clothing, and CGM equipment can be used in conjunction with the insulin pump of Shandong Weigao.
3. Profit forecast and investment rating. The EPS will be raised to 0.27 yuan and 0.30 yuan respectively from 2015 to 2016, and the market value of the company will have more room to improve if the transformation is successful in the future. However, considering that the company has been suspended for a long time, the A-share index has dropped more during the period, and its rating has been temporarily downgraded to "recommended". Risk tips: nylon industry continues to be in the doldrums, blood glucose meter promotion of low expectations.