The company's operating income in the first half of 2016 was 257 million yuan, down 14.15% from the same period last year, and its net profit was 35.43 million yuan, down 27.51% from the same period last year.
In vitro diagnostic reagents are still the main source of income: according to products, the company's revenue from in vitro diagnostic reagents is 213 million yuan, accounting for 85.23% (82.27% for the same period last year), and is still the main source of revenue for the company; biochemical raw material income is 6.4675 million yuan, accounting for 2.58% (2.25% for the same period last year); instrument income is 30.5185 million yuan, accounting for 12.19% (15.45% for the same period last year). In terms of expenses, the company's sales expenses in the first half of the year were 26.8301 million yuan, up 47.85% from the same period last year, mainly due to the increase in registration fees for new products and increased marketing efforts; management fees were 50.0932 million yuan, down 12.72% from the same period last year, mainly due to lower depreciation fees and share payments; financial expenses were 4.4793 million yuan, down 40.74% from the same period last year, mainly due to the decline in interest payments in the current period.
Acquisition of Desai China to enhance the competitiveness of biochemical diagnostics: in 2014, the company announced the acquisition of Desai systems and Desai products, which mainly include clinical chemical reagents and immune transmission turbidimetric reagents. matching calibrators, standards, quality control products and biochemical analyzers, more than 100 products are subdivided, covering all biochemical testing projects, and having more advanced immune transmission turbidimetric reagents in the world. It is an important supplement to the company's product line and greatly enhances the company's competitiveness in the field of biochemical diagnosis.
Chemiluminescence products are gradually on the market, performance is imminent: the company's independent research and development of Cl1000 chemiluminescence analyzer on the market in July 2014, 2015 sales of more than 100 sets, the company expects sales this year to double that of last year, while CI2000 has been officially established in 2015, CI800 for grass-roots hospital development has also begun pre-research. The IDS chemiluminescence instrument represented by the company is compatible with many modules such as chemiluminescence immunity, biochemistry and blood coagulation analysis. the instrument and four reagents and their quality control products have also obtained the "Medical device Registration Certificate" and officially launched to the market in August 2015. at present, it has been installed in a number of third-class hospitals, this series of products have greatly enriched the company's immune product line, so that the company has chemiluminescence technology in the domestic production enterprises. It has become one of the few medical device manufacturers with both independent research and development brands and foreign cooperative brands.
Joint venture establishment of Ingmar, layout of POCT- molecular diagnostic field: the company established Ingmar in a joint venture with Enigma. The mini laboratory Enigma ML developed by Enigma provides a fully automated solution that integrates existing molecular diagnostic pre-processing, PCR testing, data processing and analysis, and data transmission, with real-time polymerase chain reaction capability and current and future disease surveillance pathways, which is a perfect combination of POCT applications and molecular diagnostic technology. Ingmar is mainly responsible for the commercialization of Enigma ML systems in China, Hong Kong and Macau. With the help of Ingmar, the company actively distributes the field of POCT- molecular diagnostics, which is expected to become a new performance growth point of the company.
Investment suggestion: the company actively layout the whole IVD product line, through the acquisition of Desai China in-depth layout of the biochemical diagnosis market, through the independent product Cl1000 chemiluminescence analyzer and agent IDS chemiluminescence instrument to enter the chemiluminescence market, through responsible for Enigma ML sales in the domestic POCT- molecular diagnosis field, the product covers biochemical, immune, molecular and POCT technology platform, the future is expected to achieve multi-point flowering of the whole product. We forecast that the company's earnings per share from 2016 to 2018 will be 0.43 yuan, 0.50 yuan and 0.62 yuan respectively. We propose to increase our holdings-A with a 6-month target price of 15 yuan, which is equivalent to a dynamic price-to-earnings ratio of 35 times for 16 years.
Risk hint: the in vitro diagnosis market is not up to expectation and the competition is intensified.