Event
Recently, the company signed a "cooperation memorandum" with Xi'an Tianlong, Suzhou Tianlong and their existing shareholders, agreeing to invest 554 million yuan step by step in cash on the premise that all the agreed conditions are achieved. After the completion of this cooperation, Xi'an Tianlong and Suzhou Tianlong each have 62% equity.
Comment
This acquisition is another move in addition to the company's investment in molecular diagnostics, which will further improve the layout of the company's molecular testing reagents and instruments, and complement each other in research and development, products, channels and after-sales service. achieve comprehensive coverage of the clinical, industrial and blood bank markets, and enhance the company's competitiveness and market share in the field of molecular diagnostics. In 2017, the company's molecular diagnostic business revenue of 180 million yuan, after the completion of this acquisition, the company's molecular diagnostic business revenue will exceed 300 million yuan, in the forefront of the industry segment.
The product layout has been continuously improved and the channel integration has been carried out in an orderly manner. The company's product layout has been continuously improved, gradually forming five product lines of biochemistry, enzyme immunity, photoimmunity, POCT and molecular diagnosis. The biochemical business consolidates the terminal coverage with the strategy of "instrument + reagent", and the nucleic acid blood screening business is expected to seize the first opportunity when the blood screening policy of the plasma station hits the ground. Biokit officially launched to the domestic market, "home-made excellence + TGS+Biokit" chemiluminescence complementary advantages continue to improve, sales volume is worth looking forward to; molecular diagnostic extension measures continue to improve the business layout. In addition, the company's gold standard HIV products once again passed the WHO examination and approval, and the export business gradually resumed. The company also actively optimizes the structure of the sales team, integrates channel resources, and has invested in five high-quality regional distributors, namely, Xi'an Shenke, Guangdong Xinyou, Nanjing Yuanheng, Guangzhou Kehua and Jiangxi Kerong, and the terminal control ability has been greatly improved. At the same time, the company's collection and packaging business has once again made a breakthrough in Jiangsu Province and has carried out collection business in some hospitals in Taixing and Taizhou. The company will also accelerate the development of international markets with the help of TGS's existing mature marketing network in the European Union.
Maintain the "buy" rating: from 2018 to 2020, the EPS is expected to be 0.48,0.56,0.65 yuan respectively, corresponding to 30,26,22 times of PE, and maintain the "buy" rating.
Risk hint: new product R & D approval and sales promotion are not as expected.