Summary of the report:
Long Zhijie's business situation:
The company's products are mainly used in the hospital market, mainly third-class hospital customers before mergers and acquisitions, and now the company has specially set up a sales team to expand the customers of dimethyl hospitals. More than a dozen have formed orders in the first half of this year, with a target of 20 for the whole year.
The competition in the industry as a whole is still very fierce, and the market is still dominated by foreign brands. However, at present, the level of rehabilitation medical care in our country is still relatively low, and it is slowly rising now, and there is room for it in the future.
The main business of the company:
Control system business. It is mainly based on the business of API control system, while the finished drug control system is slightly weaker.
The core competitiveness of the company. The company focuses on the integration of the whole control system, and the barriers are highlighted as a deep understanding of the industry and familiarity with the technological process. The company has accumulated in the industry for many years, is very familiar with all pharmaceutical processes, and can provide high-quality pharmaceutical equipment system solutions.
The core competitiveness of the company does not lie in the technical difficulty of the product, but in the ability of system integration, which is based on the company's deep understanding of the industry.
The industry pattern is in a state of healthy competition. The competition pattern of the industry is relatively stable, foreign brands only do products without system integration, which does not constitute direct competition. At present, there is not a single dominant company in this subdivision of medicine in China. Hollysys is a relatively large company in the industry, which has been listed on NASDAQ. It is mainly good at rail transit, and the whole industry is also covered. Foreign ABB Siemens and other enterprises do not form a direct competitive relationship, they mainly provide customers with automation products, while the participation of system solutions is less, mainly because of price. The factory scheme design of domestic pharmaceutical companies is mainly domestic, as a whole, the market competition is relatively benign.
Profit forecast and investment advice:
It is predicted that the company's net profit in 2017-18-19 will be 81 million yuan, 100 million yuan and 1.121 billion yuan respectively, corresponding to 44 times, 35 times and 29 times of PE respectively.
Risk Tips:
The prosperity of the downstream industry has declined sharply.