Glove performance is highly sustainable, driving the performance beyond expectations. Affected by COVID-19 's epidemic situation, the volume and price of protective gloves have risen all over the world. 2020H1's glove business achieved a net profit of more than 500 million yuan, an increase of 1084% over the same period last year. With the release of the previous lock-up order and the full integration of prices with the market, the performance will further increase significantly in the second half of 20 years. As the demand for protective gloves will remain high for a long time, and the construction barriers of the production line are high and time-consuming, it is expected that the market situation that supply falls short of demand in 21 years will continue; the relationship between supply and demand will ease after 22 years. At that time, the production capacity of the company's expanded nitrile gloves will be fully released, and the profit level will remain high. We expect that on the basis of the gradual expansion of glove production capacity and the gradual return of prices to a reasonable range, the high performance of protective gloves is expected to continue for a long time in the future, providing profit and cash flow support for the company.
The share of percutaneous coronary intervention equipment is leading at home and abroad, and the long-term development power is sufficient. Subsidiary Baisheng International Coronary Stent has the fourth market share in the world (11%) and the third in China (21%). It has strong R & D and commercial strength. The company's only second-generation coronary stent product for patients with high risk of bleeding has been launched in Europe in 20 years, and the first-generation product will be launched in the United States at the latest, driving global sales growth. Biofreedom series products will return to China in 20-22 years, which will help the company consolidate its market share under the national collection tide; in addition, the company will focus on the patented drug BA9 a variety of drug balloons, which will continue to be brilliant in the era of "intervention without implantation".
Internal research and exogenous two-wheel drive, join the golden track of structural heart disease. The company acquires the fifth largest TAVR (transcatheter aortic valve replacement) company in Europe and comprehensively promotes the R & D and registration of second-generation recyclable TAVR and TMVR products at home and abroad, which is at the forefront of structural heart disease track research and development.
It is estimated that the performance for 20-22 years is 3.96 yuan per share, 5.34 yuan per share and 5.65 yuan per share respectively. The corresponding PE is 5.74X/4.26X/4.02X. According to the valuation of the protection business and cardiovascular business segment, we consider that it is suitable to give the company a PE valuation of 7X and 25X for 21 years, respectively, with a reasonable value of 47.74yuan per share and a "buy" rating for the first time.
Risk hint. Glove market price fluctuations may affect the sustainability of the company's performance growth; high-value consumables collection failed to win the bid or significantly reduced prices or the company's performance did not meet expectations; goodwill accounted for a higher proportion of net assets.