Leading medical consumables, export champion for 11 consecutive years
Established in 2002, Ogilvy Medical Products Co., Ltd. has been focusing on the healthcare business for a long time. Its main business is R&D, production and sales of disposable medical consumables such as medical dressings, and provides OEM and ODM services to internationally renowned medical device brand manufacturers. The company focuses on the deep integration of the medical dressing industry chain. Up to now, it has formed a complete industrial chain that runs through all production links such as spinning, weaving, bleaching, processing, packaging, sterilization, and testing, and has outstanding advantages in automated, intelligent and large-scale production.
The market size of the global bandage and medical dressing industry is growing steadily. The market size is expected to exceed 20 billion US dollars in 2019, and the growth rate will remain above 5%. The global market concentration is high. TOP4 accounts for about 50% of the market in total, and the market share of leading 3M is close to 20%.
In 2019, China's medical dressing market was 18.44 billion yuan, a growth rate of 13.7%. The domestic market is dominated by domestic brands, and the market share of leading companies is low, and industry concentration is expected to increase in the future. Judging from the overall revenue volume, Ogilvy Healthcare is a leading domestic enterprise and will gradually strengthen domestic sales and increase its domestic market share.
Ogilvy's core competitiveness: automated intelligent production+excellent quality+high cost ratio
The company is a leading manufacturer and exporter in the domestic medical dressing industry. It has three major production bases, 4,000 employees, is equipped with advanced production equipment, and has a high degree of large-scale production. With significant scale advantages, the company's production efficiency has been greatly improved and production costs have been effectively reduced.
The company is one of the few enterprises in the industry with a complete industrial chain and a high level of automation. In the company's 20-year development process, it has accumulated rich industry experience and production experience, built a systematic production line that conforms to the characteristics of the industry and has advanced international standards, forming a complete industrial chain that runs through all production links from spinning, weaving, bleaching, deep processing, packaging, sterilization, and testing. While introducing advanced complete production equipment, the company has continuously increased self-service development of special equipment and continuously upgraded equipment and processes, further enhanced the degree of automation, intelligence and integration of equipment in all links of the industrial chain, and maintained its competitive advantage.
Famous brands from overseas, opening up a new domestic blue ocean market
The company continues to promote product innovation, process upgrading and deep integration of the industrial chain in the field of medical dressings. It has outstanding advantages in terms of product performance and quality, product added value and market development. It is an important OEM, ODM manufacturer and exporter in the medical dressing industry in China. According to statistics from the China Chamber of Commerce for Import and Export of Medicines and Health Products, the company's medical dressing products were the number one exporter for 11 consecutive years.
In the future, it is expected that the category of medical consumables will expand, such as the layout of advanced dressing varieties such as hydrocolloids and hydrogels
In the field of medical devices, the company continues to expand its existing low-value consumables product range and provides one-stop product supply services. At the same time, based on high-value-added products such as neurosurgical pads and petrolatum gauze, a multi-level product line was created around wound care, surgical surgery, etc. extending to high-value consumables such as hydrogels and hydrocolloids.
Considering the obvious sales of masks and other products brought about by the pandemic this year, we raised our profit forecast. We expect the net profit for 2020-2022 to 703-803 million/908 million from the original 429 million/559 million/711 million yuan. The corresponding EPS was 111/1.27/1.43 yuan, giving 30X a valuation in 2020. The corresponding target price was raised from the original 30.6 yuan to 33.3 yuan, maintaining the “buy” rating.
Risk warning: high share of export sales, fluctuations in raw material prices, exchange rate fluctuations, risk of derivative price fluctuations, etc.