Key points of investment:
Deeply cultivate meticulous work to build a leading medical information technology company. Since its establishment, the company has been focusing on the field of medical clinical informatization. After nearly 17 years of development, it has developed and formed DoCare series clinical medical management information system products and Dorico digital operating rooms and digital emergency first aid platform overall solutions, and has been maturely applied in more than 2,100 medical institutions in 32 provinces across the country, forming a leading market position and high brand awareness in the field of clinical informatization.
Acquired Marie Hospital and entered the field of assisted reproduction. In 2019, the company acquired Queen Mary Hospital and officially entered the reproductive medicine medical service sector. As a specialist hospital focusing on “IVF” treatment, Queen Mary's current core competitiveness is reflected in the three fields of reproductive medicine, gynecology, and andrology. It is a medical institution approved by the National Health Commission to develop assisted reproductive technology with both IVF-ET and ICSI technology. Queen Mary Hospital's revenue for 2020-2022 was $0.38/0.44/49 million yuan.
Efficient execution, crossing borders into the photovoltaic field. The company began laying out the new energy business in '22 and planning control changes through non-public issuance+ agreement transfers. In January '23, the company completed the change of control (the price of this non-public offering was 11.14 yuan/share), started construction of the Mianyang 9GW TopCon battery project in February '23, and completed and released in June '23. Efficient execution made the company one of the earliest companies to start production among cross-border players.
Actively expand customers and guarantee the shipment of photovoltaic cells. After the company's battery project was put into operation, it actively developed downstream customers and signed strategic cooperation agreements with Artes and Shandong Keda Group. In addition, the company also signed a 6GW battery sales framework contract with Ceraf. The competitive pattern in the photovoltaic market intensified in 24 years, and the company guaranteed the company's battery shipments through strategic cooperation with downstream customers and signing long sales orders.
The main business was stable, and the release of new business capacity created the second growth pole, covered for the first time, and gave the company an “increase in weight” rating. The company's original main business is relatively stable, and the new business is expected to start growing in '24. We expect the company's net profit to be 1.94 to 345 million in 24/25. The current stock price corresponds to PE 18/10 times, covering it for the first time, giving the company an “gain” rating.
Risk warning: Competition in the photovoltaic industry intensifies risks. The risk of installing photovoltaic terminals falls short of expectations, the risk of sales falling short of expectations, and the speed of medical informatization construction updates is not as fast as expected.