Main points of investment
Items:
The company released its quarterly report for 2018: revenue in the reporting period reached 260 million yuan, an increase of 59.78% over the same period last year; net profit attributable to 18.6467 million yuan, an increase of 27.45% over the same period last year; and net profit attributable to non-deduction was 18.8335 million yuan, an increase of 52.71% over the same period last year. As expected.
Peace viewpoint:
The multi-point layout has landed and the scale has been expanded:
Through the continuous layout in 2017, the company has achieved good results in some areas. The total income of 2018Q1 company is 260 million yuan, of which the contribution and table income of Oshenbo and Jingyang Tengwei is estimated to be about 12 million yuan, with an endogenous growth rate of about 52%. After the merger and acquisition of Jingyang Tengwei, Beijing and its surrounding areas have become a new and important source of income for the company. In addition, the company also has rapid development in Shandong, Hubei, Hunan and Guangdong. Over time, other locations of the company will also continue to contribute revenue.
2018Q1's overall gross profit margin was 33.17%, an increase of 1.12PP over the same period last year, and the impact of price reduction continued to move upstream to the manufacturing side. The company's sales-side arrangement has been quite effective, with the sales expense rate of 7.57% in the reporting period, down 2.09 PP over the same period last year, and the management expense rate of 8.60%, a decrease of 0.27PP over the same period last year. The company's net fixed assets increased by about 9 million yuan compared with the beginning of the year. Considering depreciation and the conversion of projects under construction, it is estimated that the actual increase in equipment fixed assets is about 12 million yuan, mainly for equipment investment in integrated business.
SPD pilot business is launched, and more contracts are expected to be signed:
In early February 2018, the company signed a SPD business framework agreement with the people's Hospital affiliated to Inner Mongolia Medical University and formally entered into the overall supply of consumables in the hospital. At present, the company has completed the pre-adjustment process, entered the preparatory stage, and is expected to enter the investment and construction period of supporting projects soon.
SPD service can help hospitals to improve the standardization of operation and reduce procurement and operating costs. At present, the income side of the hospital is restricted, and it is very attractive to improve the operational efficiency. More SPD service contracts are expected to be signed in 2018.
During the integration of IVD channels, the layout promotes the development of the company and maintains the "recommended" rating: the integration of IVD channels enters the competitive stage of service capacity and bargaining power, which puts forward higher requirements for the comprehensive strength of each channel company, and the number of powerful competitors is limited. As the pioneer of the first batch of application integration business, Selis has a leading edge in experience and ability. After listing, the company has expanded its business scale across the country and enhanced its bargaining power to upstream enterprises, which has achieved initial results. To maintain the performance forecast, the net profit for 2018-2020 is expected to be 1.34 billion yuan, taking into account the equity dilution caused by dividends in 2017. adjust the forecast EPS for 2018-2020 to 0.75 pounds 1.07 pounds 1.42 yuan (the original forecast is 1.87 pounds 2.67 pounds 3.55 yuan), and maintain the "recommended" rating.
Risk Tips:
(1) Channel expansion is not as expected: the company's expansion plan across the country is not realized as scheduled, which may have a negative impact on performance.
(2) risk of price reduction: if the terminal price of the product is greatly reduced, the company may have a decline in gross profit margin because it is unable to transfer the pressure of price reduction to the upstream enterprises in time.
(3) Policy risk: if there are policies that are not conducive to the IVD industry or intensive supply, it may affect the performance of the company.