Event: the company announced that it intends to set up Chengdu Bailing Diabetes Hospital Co., Ltd. (Chengdu Diabetes Hospital) with its own funds. The registered capital of Chengdu Diabetes Hospital is proposed to be 100 million yuan, and the company contributes 100 million yuan in cash, accounting for 100% of the registered capital of Chengdu Diabetes Hospital.
Event comments:
The third diabetes hospital landed in Chengdu, an important city in the southwest, accelerating the promotion of the company's "medicine linkage" model. 1) Guiyang traditional Chinese Medicine Diabetes Hospital has been in operation for more than 3 years. In terms of hospital management, the exclusive green therapy model of Guiyang traditional Chinese Medicine Diabetes Hospital, which integrates herbal medicine, traditional Chinese medicine physiotherapy and rehabilitation exercise, has matured and has the conditions for national replication. The layout of entering Sichuan will promote the experience of Guiyang after Changsha, which will directly expand the influence of diabetes hospitals in Sichuan Province, and will also give full play to the synergistic effect of diabetes hospitals in Guiyang and Chengdu. make the Miao medicine integration project cover Sichuan and radiate the whole southwest region, and accelerate the promotion of the company's "medicine linkage" model. 2) according to the data of the National Bureau of Statistics, in 2016, Sichuan Province had a total population of 82.62 million, ranking fourth in the country and first in the southwest region; the total income of health institutions in Sichuan Province was 178.798 billion yuan, ranking fifth in the country and first in the southwest region. Chengdu is not only the capital of Sichuan Province, but also an important political, economic and cultural center in southwest China. It is an important town of medical resources in southwest China, bringing together a number of well-known state-owned large-scale general hospitals. 3) in the process of research and development of new drugs such as Tangning Tongluo capsule, the company has worked closely with West China Hospital of Sichuan University, which has accumulated certain academic resources for the successful operation of Chengdu Diabetes Hospital.
Guiyang Diabetes Hospital of traditional Chinese Medicine has maintained a good momentum of development, and the expansion has formed a "college, small comprehensive" department layout model. In 2017, Guiyang Diabetes Hospital of traditional Chinese Medicine received more than 36000 patients, with an income of 71.8868 million yuan, an increase of 37.61 percent over the same period last year. At the same time, Guiyang traditional Chinese Medicine Diabetes Hospital launched the expansion plan in the second half of 2017. A series of supporting departments, such as diabetic nephropathy clinic, hemodialysis center, diabetic neuropathy clinic, diabetic ophthalmology clinic, diabetic heart disease clinic, rescue room, operating room, and so on, will be set up, adding 200 beds, forming the layout pattern of "college, junior college and small comprehensive" departments. This time, Chengdu Diabetes Hospital will also be built in accordance with the "college, small comprehensive" model, with diabetes treatment as the core, and supporting the establishment of relevant professional disciplines in view of the various complications involved in diabetes. to create a complete industry chain for diabetes treatment.
Investment advice:
We estimate that the net profit of the company from 2019 to 2020 will be 600 million yuan, 691 million yuan and 800 million yuan respectively, and the EPS will be 0.43,0.49,0.57 yuan, respectively, and the corresponding PE will be 33.47,29.36,25.25 times. Considering the steady growth of the company's key varieties; Tangning Tongluo capsule market potential, diabetes hospital expansion, the layout of the southwest pharmaceutical city of Chengdu, we maintain its "buy" investment rating.
Risk Tips:
Product price reduction; Tangning Tongluo capsule market promotion progress is slow; focus on the research and development of product research and development results are lower than expected.