Matters: 1. The company announced that it signed the "Framework Agreement on intensive Operation and Service of Medical consumables" with the affiliated people's Hospital of Inner Mongolia Medical University to carry out SPD business with a contract period of 6 years. 2. The company invested 5.1 million yuan to set up a new company, Nanjing Cezanne, with a 51% stake, which will be used to promote the intensive supply of hospitals in Jiangsu Province.
Peace viewpoint:
N SPD service is launched to open a new chapter of intensive supply:
SPD (Hospital Intelligent Logistics platform, Supply/ Processing/ Distribution) business is more deeply involved in hospital supply chain management through intelligent equipment, fully connecting suppliers-hospitals-departments, covering products including drugs, consumables, equipment, diagnostic reagents and so on. It is an upgraded version of traditional intensification.
Compared with the IVD intensive business previously implemented by the company, the biggest improvement of SPD is that (1) modularization covers a variety of hospital procurement needs, not limited to IVD products; (2) the company invests more manpower and material resources in logistics and operation, deeply participates in hospital management, and has more service attributes.
SPD service can enhance the standardization of the hospital, and reduce its procurement and operating costs. Today, when the income side of the hospital is controlled and the charge for a single disease enters the exploratory stage, it has a strong practical significance. As far as the company is concerned, SPD can strengthen the binding between the company and the hospital, and thus dig deep into the hospital demand and intervene in the supply of low-value consumables and equipment.
At present, SPD business has been carried out in the national medicine system, and Shangyao and China Resources are also initially involved. The company's SPD supporting system comes from Guangdong University, which took a stake in October 2017. Selis achieved a business breakthrough within three months after completing the equity participation, reflecting the high efficiency of the company.
N the first SPD service has been launched, and it is expected to continue to replicate:
The people's Hospital affiliated to Inner Mongolia Medical University is located in Hohhot. It has 900 beds and more than 700 beds. It is a third-class specialized hospital characterized by tumor treatment. According to the volume of the hospital, it is roughly estimated that the annual purchase volume may be about 500-600 million yuan. After the completion of the system construction of the company, all kinds of product supply modules in the SPD business will be gradually embedded, and the annual purchase volume is expected to reach 70 million yuan (about 14% of the total hospital purchase) when all of them enter the mature supply, which will greatly enhance the business contribution of a single hospital.
The contract can be seen as the company's first test to expand its SPD business, and if it goes well, the company will continue to replicate the model in different hospitals.
N the second stage of channel integration is just in time to promote SPD business to upgrade its business energy level and maintain the "recommended" rating: we believe that the current IVD channel integration has changed from the first stage of M & A competition to the second stage of service capacity and resource control competition, and companies with intensive supply capacity are expected to gain the initiative in market redistribution. Selis has long-term experience in intensive supply, and with the help of SPD to upgrade its service capacity again, it is expected to grow into a national leader. Without considering the undetermined factors of M & A, the forecast of EPS of 1.26max 1.69pm 2.23 yuan in 2017-2019 is maintained, and the "recommended" rating is maintained.
N risk hint: Channel expansion is not as expected, policy risk.