Event: the company disclosed the first half of the results forecast, expected 2020H1 profit: 704.4314 million yuan-726.7943 million yuan, an increase over the same period last year: 530% Murray 550%, achieving high-speed growth. The company is located in Hubei Province, the center of the epidemic situation. As a designated epidemic prevention material guarantee and supply enterprise in Hubei Province, the company fulfilled the social responsibility of ensuring supply and price during the COVID-19 epidemic situation, and made every effort to ensure the supply of epidemic prevention materials in Hubei Province and other places. And after the domestic epidemic situation alleviated, undertake the task of central reserve of epidemic prevention materials, Hubei province reserve task and foreign aid task. Domestic channels have been opened one after another, and it will be sustainable in the future.
Medical consumables leader, champion of export for 11 years in a row.
Ogilvy Medical supplies Co., Ltd. was founded in 2002, long-term focus on health care, the main business is medical dressings and other disposable medical consumables research and development, production and sales, to provide OEM, ODM services for international well-known medical device brands. The company pays attention to the deep integration of the medical dressing industry chain, and so far it has formed a complete industrial chain that runs through all production links, such as spinning, weaving, de-bleaching, processing, packaging, sterilization, testing and so on. It has outstanding advantages of automation, intelligence and large-scale production.
The global market for bandages and medical dressings is growing steadily, with a market size of more than US $20 billion in 2019, a growth rate of more than 5%. The global market is highly concentrated, with TOP4 accounting for about 50 per cent of the market and leading 3M Company with a market share of nearly 20 per cent.
In 2019, the market size of medical dressings in China was 18.44 billion yuan, with a growth rate of 13.7%. The domestic market is dominated by domestic brands, the head company has a low market share, and the industry concentration is expected to increase in the future. In terms of overall income, Ogilvy Medical belongs to the leading domestic enterprises, which will gradually strengthen domestic sales and increase domestic market share.
Ogilvy's core competitiveness: automated intelligent production + excellent quality + cost-effective company is a leading manufacturer and exporter of medical dressings in China, with three major production bases, 4000 employees and advanced production equipment. 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 course of 20 years of development of the enterprise, we have accumulated rich industry experience and production experience, and created a systematic, in line with the characteristics of the industry, with an international advanced production line, forming a complete industrial chain running through all production links, such as spinning, weaving, de-bleaching, deep processing, packaging, sterilization, testing, etc.
Maintain a "buy" rating
Taking into account the significant contribution to the performance of epidemic-related products in the first half of the year and the continuity with the development of the epidemic, we raised our performance forecast for 2020-2022, raising net profit from 703 million / 803 million / 908 million to 1 billion / 1.21 billion / 1.41 billion, maintaining the "buy" rating.
Risk tips: high proportion of export, raw material price fluctuation, exchange rate fluctuation, derivative price fluctuation risk, epidemic uncertainty and so on.