Event
Recently, the company released the 2017 results report, the current operating income in the first half of the year was 1.016 billion yuan, an increase of 19.46% over the same period last year, and the net profit belonging to the parent company was 95.3 million yuan, an increase of 14.52% over the same period last year. At the same time, the company released a performance forecast for the period from January to September 2017, which is expected to achieve a net profit of 143 million yuan to 182 million yuan, an increase of 10% and 40% over the same period last year.
Buyer's credit and PPP promote the continuous growth of the company's orders, and the performance is expected to hit bottom. The company is one of the largest service providers in the field of medical professional engineering in China. Through the buyer's credit and PPP model, the company accelerates the layout of the medical industry chain to achieve the purpose of building, investing and operating hospitals, and become a large-scale comprehensive medical service provider in China. The contract value has exceeded 6.4 billion yuan by the end of 2016, and many of the projects have been gradually started, and the future performance is expected to hit bottom and pick up. The company has also signed a number of cooperation framework agreements, and it is expected that the company will still have a large number of new orders in the future, thus forming a strong guarantee for the company's future performance.
Endogenesis and extension constantly improve the whole industry chain model of medical platform
The company's goal is to strive to build the company into a large domestic comprehensive medical service provider in ten years. On this goal, relying on the overall construction of the hospital industry to build four major industrial platforms, such as medical logistics, consumable materials production and marketing, equipment production and marketing, and hospital investment, the company has entered the medical device industry through extension mergers and acquisitions of Poulder Medical, Jinzhou Medical equipment, etc., and set up a number of medical funds. It is expected that there will still be extension development expectations in many areas such as medical devices in the future, so as to achieve the results of business synergy and promote the company's long-term development.
Investment strategy
We estimate that the company's net profit belonging to the parent company in 17-19 is 174 million yuan, 213 million yuan and 261 million yuan, an increase of 49.2%, 23.3% and 22.3% over the same period last year, corresponding to 0.26,0.32,0.39 yuan for EPS and 37 times, 30 times and 25 times for PE.
Risk hint
The order is not as expected, the project progress is not as expected, the buyer's credit business risk, business integration risk.
