Event: the company issued a bid-winning announcement, winning the bid Kunshan Guochuang Investment Group Co., Ltd. "Eastern Medical Center Automation Pharmacy Storage and Distribution Library Purchasing and installation" project, which determines the strategy of integrating storage and dispensing. The total amount of the project is 43.79 million yuan, accounting for 14% of the company's total revenue in 2020.
The project of Kunshan East Medical Center won the bid, which fully demonstrates the customized ability of scarcity in the industry. The company won the bid for the Kunshan East Medical Center project. Based on the current situation of hospital informatization, the project determined two assembly lines of large infusion and western medicine storage and dispensing, and established a first-level, second-level and third-level automatic allocation system to realize the strategy of integration of storage and distribution. The project integration applies a large number of key technologies of automatic storage equipment, which has the characteristics of high customization and high technical barriers. The winning bid fully demonstrates the company's scarce service ability to undertake a large number of fully customized material management system projects. So far, other fully customized material management system projects that have been completed and implemented by the company include: 29 million yuan Shanghai Cancer Hospital Integrated Intelligent Bank project (completed in 2019), 23 million yuan Suzhou Dushuhu Hospital project (completed in 2020), 49.59 million yuan Nantong Medical Center project (under implementation), 48.87 million yuan Kunshan Western Medical Center project (under implementation).
Industry analysis: a growth track driven by endogenous demand and policy. Medical materials in hospitals rely on high-intensity manual processing for a long time, which is inefficient and prone to manual errors, and there is a strong endogenous demand for intelligent management of medical materials; documents to encourage and guide intelligent management of medical materials have been issued one after another to provide a good policy soil; the long-term growth of medical and health investment in China and provinces to speed up the construction of deficiency boards after the epidemic provide potential demand space for intelligent management of medical materials. At the end of 2018, the overall penetration rate of automation equipment in outpatient pharmacies in China was about 20.0%. We judge that the overall penetration rate of intelligent management of materials in China's medical industry is currently less than 10%, and there is much room for improvement in the future. It is conservatively assumed that the penetration rate of intelligent equipment in tertiary hospitals will increase by 2% every year, and the penetration rate of secondary hospitals will increase by 1% every year. Five years later, it will create a market space of 10 billion yuan. Driven by both endogenous demand and policy, the track is full of growth.
Comprehensive strength, technology and talents to build a moat. The company has a strong comprehensive strength and a leading market position. by the end of 2018, the market share in the field of outpatient pharmacy automation is 28.5%, second only to Jianxin information, and the brand effect has gathered many new customers for customers. the perfect after-sales service network enhances the company's customer stickiness and ensures that the company excavates more value in a single customer, which is good for long-term development. The intelligent management industry of medical materials has the characteristics of talent-intensive and technology-intensive, and the company relies on the industry's leading technical level and talent advantages to build a moat. Since its establishment, the company has always paid attention to R & D investment, with R & D expenditure of 32.24 million yuan in 2020, R & D expenditure rate reaching 10.40%, and R & D personnel accounting for 21% of the total number of employees. Relying on the perfect training system and competitive salary in the market, the company has trained a group of experienced technical and business personnel. Mr. Jiao Xiaobin, the core technical staff, once worked in Beijing Beida Fangzheng Electronics Co., Ltd. has many years of research and product development experience in computer vision and other fields.
Profit forecast and investment advice: we expect the operating income of Elon Technology from 2021 to 2023 to be 408 million, 545 million and 726 million respectively, the return net profit to be 94 million, 122 million and 162 million respectively, and the basic earnings per share to be 1.22,1.58 and 2.10 yuan respectively, and the corresponding PE is 37.5X, 28.8X and 21.8X respectively.
The industry of intelligent management system of medical materials is in the growth stage, and the market saturation is low, so it is a blue sea track with full potential. Elon Technology, as an industry leader, has the core barriers of technology and talent, and has strong comprehensive strength. and has the industry scarce customized service capacity to maintain the buy rating.
Risk tips: product and technological innovation research and development risk, industry competition risk, brain drain risk, market space measurement deviation risk, the use of public information lag or not updated in a timely manner.
