The company is the market leader of the fast-growing MISIA industry in China: China has a large and rapidly growing market for surgical instruments and consumables. According to the information collected, China's MISIA market has a population of 185 billion in 2019, with a combined growth rate of 17.8% in 2015-2019, an estimated annual growth rate of 17.2% in 2019-2024, and 40.8 billion in 2019. The market has a huge market power. The company's market share ranks first among domestic merchants, and occupies the largest market share in many fields (disposable casing puncture, polymer test, type III disposable electric condenser, etc.).
Have the most comprehensive product management line in the industry: the company's product group provides one-stop customized surgical solutions for doctors in obstetrics, general surgery, urology and thoracic surgery. Product line covers seven of the eight categories of products in the MISIA industry: disposable casing piercers, disposable results, absorbable results (to be listed), disposable electrocoagulation, reusable piercers and staplers, disposable knives and staplers. At present, the company has the most comprehensive management line in the industry.
The bed demand-oriented research and development model is accurate and efficient: the company determines the types of products developed through the communication of top experts and doctors, and through the collection of bed doctors to quickly improve and improve the products, the bed is efficient and efficient. Because the company's products are well known in the department and doctors, the products can be sold quickly after they are put on the market, and the improvement efficiency of the listed products is also higher than that of their counterparts.
Efficient marketing programs supported by academic promotion: the company maintains close cooperation with major academic practitioners, doctors, hospitals and medical associations, and the sales model is initiated by leading academic experts. The company uses a single-market business model, which makes it easier for the company to understand the use of its products on the market, and a more flat sales structure ensures the company's ability to control the business. At present, the products cover more than 3400 hospitals, of which more than 1000 are third-class hospitals.
Optimistic about the future development of the company, with a target of HK $23.09, ranking in the level: we take DCF as the company's valuation, taking into account not only the rapid growth of the MISIA industry, national alternative space and the strength of the company, but also the possible downside of collection, assuming a discount rate of 10% and a sustainable growth rate of 4% as the company's valuation, we get a target of HK $23.09. Corresponding to the 86.9max 54.6max 41.9 times PE in 2020 / 2021 / 2022, the company closed the market with a rising space of 63.8% for the Hong Kong dollar.
Risk factors: the state collects sales, increases training, and technical safety accident records.