Event: the company signed an "equity acquisition intention agreement" with Tibet Daming and Xue Weiwei, shareholders of Heilongjiang Tianyuan Maternity Hospital Co., Ltd., and the company plans to acquire 51% of the shares held by Tibet Daming and Xue Weiwei in Tianyuan Maternity Hospital, with a preliminary estimate of 165 million yuan.
Buy 51% equity of Heilongjiang Tianyuan Obstetrics and Gynecology Hospital, assisted reproduction and then the next city. The company plans to acquire a total of 51% of the shares held by Tibetan Daming and Xue Weiwei in Tianyuan Maternity Hospital, with an initial valuation of 165 million yuan. Tianyuan Hospital achieved an income of 39.3256 million yuan and a net profit of-34.5446 million yuan in 2019 and 30.1985 million yuan and a net profit of-7.0011 million yuan from January to June 2020. This acquisition will further expand the company's assisted reproductive territory and extend the layout of the company's medical service industry chain.
The first aid platform and intensive care opened the new growth of the company, and the hand anaesthesia business developed steadily. The main results are as follows: 1) due to the shortage of intensive care resources under the epidemic situation, it is imperative to improve the efficiency of ICU system. Due to the shortage of ICU intensive care resources under the epidemic situation, the clinical information system of severe auxiliary diagnosis has outstanding ability in improving efficiency and saving manpower. 2) the national acceleration is based on the first aid platform of the "five centers", and the "531" benchmarking project highlights the competitive advantage. The policy requires that by 2020, all parts of the country will gradually establish an emergency and critical illness system based on the "five major centers". The regional intelligent first aid platform of Suzhou model has become a benchmarking project, with replicable promotion throughout the country, and the company is deeply involved in the construction of Suzhou "531" project. The company contracted the project construction of the business support platform of the medical rescue emergency command platform in Jilin Province, and won the bid "Kunshan Regional Integration platform (including emergency, five specialties and specialist data application systems)" project, with a bid amount of 15.6 million yuan. it deepens the mining and application of specialist data.
Enter the blue ocean market with high barriers to assisted reproduction, and have sufficient capital to create the ecology of the whole industry chain. 1) the rate of infertility continues to rise, and assisted reproduction has become a blue ocean market. According to iResearch Consulting, it is estimated that by 2023, the prevalence rate of infertility in China will reach 18.2%, the number of infertile couples will reach 50 million, and the penetration rate of China's assisted reproductive market will be 7% in 2018, compared with more than 30% in the United States in the same period. With the increase of penetration, China's population base is superimposed, and assisted reproduction becomes a blue ocean market. 2) the assisted reproductive license creates a high threshold, and high-quality private institutions have the potential for development. China's market for assisted reproductive services is strictly regulated, the number of licenses is limited, and it is difficult to apply for new applications. When the future market penetration increases and licenses are issued in accordance with national regulations, the supply of top public hospitals falls short of demand, and the ranking time increases, and some high-quality private institutions will release greater development potential. 3) successively acquire Hainan Mary Hospital, Beijing Guowei Reproductive Hospital and Tianyuan Maternity Hospital to create the ecology of the whole industry chain of assisted reproduction. In the future, the company will take the assisted reproductive medical institutions as the center, continue to improve the number of cycles and expand the market scale, and extend to the middle reaches of the industrial chain to provide pre-pregnancy and eugenic services. At the same time, with the help of its own information advantages, to create a national assisted reproductive cloud platform to provide more possibilities for derivative services. We believe that sufficient capital strength will accelerate the company's industrial chain layout in the assisted reproductive market and expand the scale of the assisted reproductive cycle centering on assisted reproductive medical institutions.
Maintain a "buy" rating. We predict that the company will achieve income of 4.60,6.03 and 749 million yuan from 2020 to 2022, an increase of 38.2%, 30.9% and 24.3% over the same period last year, and the net profit of 1.37,1.81 and 247 million yuan, an increase of 192.3%, 32.4% and 36.0% over the same period last year. Maintain a "buy" rating.
Risk hints: there is still uncertainty in the transaction; the promotion of assisted reproductive business is lower than expected; the national construction process of emergency first aid is lower than expected; and the risk of errors may exist in key assumptions.
