Revenue maintained steady growth, and net profit attributable to the parent company increased by 56.03% after deducting non-profit.
In the first three quarters of 2019, the company's operating income was 1.712 billion yuan, an increase of 18.22% over the same period last year; the net profit of shareholders belonging to the parent company was 218 million yuan, an increase of 54.66% over the same period last year; and the net profit of shareholders belonging to the parent company was 195 million yuan, an increase of 56.03% over the same period last year. The fundamentals of the company continue to improve, and the leading position of the industry is stable. In the first half of 2019, the total export volume of medical dressing products ranked first in the industry.
Dig deep into the American market and actively expand emerging markets
The company has continued to focus on and deeply cultivate the American market, which is one of the company's important markets, and the company has been in close communication with relevant customers in order to open up new areas and expand market share in the American market. The company was less affected by the trade war, and its revenue in North America grew by about 20% in the first half of 2019.
In terms of market expansion in emerging countries, the company has also achieved certain results. Taking the Middle East as an example, the company has achieved sales revenue growth in the Middle East, South America and Africa since 2019.
Steady growth of medical dressing industry
The company is located in the medical dressing industry in the disposable medical consumables industry, with the increasingly prominent problem of global population aging and the growth of patients with ulcers, bedsores and other diseases, and with the progress of society and the improvement of people's quality of life, patients' requirements for wound healing and comfort are also improved accordingly, and the market scale of the global medical dressing industry is growing steadily. At the same time, the company has not been lazy in its investment in R & D. in the first three quarters of 2019, the company invested 44.94 million yuan in R & D, an increase of 49.13% over the same period last year, ensuring that its position as a leader in the industry continues.
According to the statistics and forecasts of Freedonia, the global market for bandages and medical dressings reached US $18.84 billion in 2015, an increase of 30.65% over 2010. It is estimated that the global market for bandages and medical dressings will reach US $24.4 billion by 2020 and US $31.3 billion by 2025.
Coverage for the first time, giving a "buy" rating
The company has obvious advantages in scale, which is conducive to gaining a larger market share in the global market competition. We estimate that in 19-21, the company's revenue is 24.33,29.20 and 3.504 billion yuan, and the net profit is 3.21,4.29 and 559 million yuan. The corresponding EPS is 0.76,1.02,1.33 yuan, and the PE is 29,22,17 times. Considering that the company has obvious competitive advantage and large-scale and automatic production capacity, it will be given 30X PE in 2020, corresponding to the target price of 30.6 yuan, with a "buy" rating for the first time.
Risk hints: the relatively high risk of export income, the risk of raw material price fluctuation, the risk of exchange rate fluctuation, the risk of derivative underlying asset price fluctuation and so on.