I. Overview of events

On May 8, at the "China Regional Public Brand Summit Forum", the company reached a strategic cooperation with Sanoxiu, the exclusive agent of co2 laser therapeutic instrument (Mona Lisa). At the same time, the company signed a contract with Sainuo and Beautiful Mom, and the three parties will work together to integrate their own superior resources and actively develop the medical and beauty market.

II. Analysis and judgment

Hand in hand Sainuo and beautiful mother dig deep into the private plastic surgery market, expand the layout of the medical and beautiful layout of the cooperation object 1: American Sanoxiu Laser Co., Ltd. was founded in 1991 and listed on Nasdaq in 2005. In 2007, it became the world's largest manufacturer and service provider of medical and beauty lasers. In 2015, it entered the top 100 medical device companies in the world, committed to the research and development, production and clinical treatment of Mimi laser, and invented the first dye laser in the world. The first picosecond laser, with a large number of patented technology, has a good reputation and excellent performance in the industry.

Object 2: as the founder and leader of China's postpartum medical and beauty industry, Beautiful Mom is committed to providing one-stop and personalized maternal health management solutions for pregnant and parturient women. so far, it has hundreds of service outlets in more than 200 cities in China, and has set up operation centers in Singapore, Malaysia and other overseas cities. It has provided safe and effective postpartum medical and beauty services for millions of pregnant and parturient mothers. As part of the "Beautiful Mom 2.0" strategy, beautiful mothers are the first to put forward the concept of postpartum medical beauty at the medical level, and have completed the project framework design, key technical route formulation, clinical diagnosis and treatment plan verification, the establishment of medical service institutions, and the construction of a team of experts and doctors.

The cooperation content: a) Suzhou Senoxiu Medical Devices (a wholly-owned subsidiary of Sanuoxiu in the United States) authorizes the exclusive franchise agent of co2 laser therapeutic apparatus (Mona Lisa). At the same time, the application experiment, promotion and marketing of medical and beauty-related instruments and equipment after Sainuo show production are expected to land in Shanghai Oriental Meigu Industrial Park. Monalisa Touch is an innovative private laser for women, designed and produced by the Italian company DEKA, which can transmit co2 laser energy to the treatment site to improve the health of women's pelvic floor. It is the first carbon dioxide private laser in the world. The only DP pulse technology in the world (which can modulate up to 5 kinds of carbon dioxide pulse output modes) can treat female vaginal mucosa and stimulate collagen synthesis in deep tissue. And create the first 360-degree private probe (disposable consumables). B) the cooperation between the company and Sainuo and Beautiful Mom is mainly based on the integration of their respective advantage resources, jointly promoting the research and development of postpartum medical diagnosis and treatment technology programs, clinical research of diagnosis and treatment cases, and actively exploring the emerging market of postpartum medical beauty. Cooperation in instruments includes buyout and profit sharing.

Private plastic surgery has become the fastest-growing program in the medical sector, with a wide range of postpartum mothers. According to Sainuo's official data, the global population of women aged 45 to 74 is growing, with 294 million women suffering from WA, 221 million women without treatment and 100m women suffering from urinary incontinence. Among them, there are 20 million new mothers in China every year, and postpartum reproductive obesity, urinary incontinence, chronic pain and other problems seriously affect the quality of life of women. At the same time, with the popularization of medical beauty knowledge and the promotion of health awareness, beauty seekers' demand for private plastic surgery projects has increased rapidly. according to the White Paper on more Beauty 2019 Medical Beauty Industry, the size of the private plastic surgery market has increased by as much as 105% in 2019. It has become the fastest growing project in medical beauty. At present, women's gradual requirements for aesthetics (the core needs of private plastic surgery include compactness, pleasure, beautification, health, etc.), forcing the progress of private plastic surgery technology, private plastic surgery is also developing in the direction of safety, convenience and diversification. According to the research, at present, the main market of private plastic surgery is still in Shengmei, Yuezi Center, Gynecology Hospital and so on, but with the standardization of medical beauty industry, it will gradually change to formal medical beauty institutions in the future. We believe that based on the application scene that the company has Liantianmei, the leader of Zhejiang medical beauty service, the beautiful mother has a stable group of members and a mature team of experts, and Sainuoxiu has a number of world-famous medical and beauty products. This cooperation conforms to the current development trend of the private plastic surgery market and will become one of the bright spots of the company's medical and beauty business profit growth in the future.

Investment suggestion

XIAOMI industry chain integrated ecosystem, the company's medical ecology has begun to take shape, in the middle and lower reaches of the layout gradually tamped, will continue to adhere to the mid-stream medical institutions as the starting point, establish a medical beauty consumption application scene, based on the upstream product / sales network, card position downstream medical beauty MCN, for the mid-stream medical beauty institutions for brand promotion, flow empowerment Form the strategy of horizontal coordination, mutual benefit and win-win medical ecological circle of upstream, middle and downstream business. In terms of capital, the company has set up an industrial fund and will ensure the effective layout of follow-up projects through bank loans and financial leasing, while the talent side has launched a "global partner" program. Optimistic about the efficient promotion of the company's medical and beauty ecological strategy, based on this we raised the previous profit forecast, the company's EPS in 2021-2023 is expected to be 0.22,0.52,0.69 yuan respectively, and the corresponding PE is 106.1, 44.1, 33.2X respectively, which is lower than the 2022 90X valuation level of the medical and beauty industry, and maintains the "recommended" rating.