Event analysis
The company signed the "Equity Investment (transfer) intention Agreement" with Jiyuan Pharmaceutical, etc., and continued to promote the ecology of Medical Beauty. On June 3, Guangzhou Ogilvy signed the "Equity Investment (transfer) intention Agreement" with Yuanmei Biological, Dalian Merlot, Dalian Jiyuan and the five founders. It is agreed to set up a merger and acquisition fund to acquire 51% of the shares of the underlying company (Yuanmei Biological, Dalian Merlot, Dalian Jiyuan). At the same time, the average main business income promised by the founders in 2021-2023 is not less than 100 million yuan, and the net profit is not less than 30 million yuan.
Event comment
The whole industry chain opens up the medical beauty ecological integrator: the company has accelerated the medical beauty industry layout since 2021, taking the middle reaches medical beauty service organization as the starting point, is committed to building the medical beauty ecological integrator, in the upstream product / sales network, the downstream medical beauty MCN has the layout, has realized the upstream and downstream whole industry chain to open.
Upstream: the company has reached strategic cooperation with many high-quality enterprises in the upper reaches of the industry to form complementary advantages and jointly promote the transformation of industry-university-research: 1) reach strategic cooperation with the Medical Biology Center of Jinan University and Jiyuan Biology to jointly promote the development of recombinant humanoid collagen products. 2) sign the letter of intent for equity transfer with Jiyuan Pharmaceutical (Fullerene) to promote the landing of the joint products. 3) reach a strategic cooperation with KD Medical to jointly set up a joint venture company and cooperate in domestic production. 4) sign a cooperation agreement with Sainuo and Beautiful Mom to enter into postpartum medicine.
Mid-stream: acquisition of 55% shares of Liantianmei, a high-quality target: Liantianmei is mainly engaged in the operation and management of medical institutions. It includes Hangzhou Liantianmei Medical and Beauty Hospital and Hangzhou Victoria Medical and Beauty Hospital. There are 5 chief physicians, 8 deputy chief physicians and 173 professional medical staff in the two hospitals. In 2019-20, the income was 4600.49 million yuan respectively, and the net profit was 17660.55 million yuan respectively.
The original shareholder promised that the cumulative non-return net profit of Liantianmei in 2021-22 would not be less than 157 million yuan.
Downstream: deep cooperation head MCN institutions to achieve drainage and brand marketing for the upper and middle reaches:
The company cooperates with four head MCN organizations: Duke Culture, Star Dream Factory, Lezheng Culture and buoyancy desire Benevolence, and will make use of the industry influence and flow advantage of MCN to promote terminal medical and beauty products, drain the company's upper and middle reaches layout, strengthen the cooperation of industry associations, and enhance the influence of the industry.
Profit forecast and investment rating: the company will transform its medical and beauty business in 2021. In the future, with the rapid development of the mid-stream medical and beauty service industry, the regional leader Liantianmei is expected to further benefit. In addition, the company is also expected to continue to land medical and beauty projects and strengthen the layout of the industrial chain. in the future, non-core business is expected to be spun off, and future growth is expected. In view of the fact that the company has not yet signed the final agreement, we will temporarily keep the company's profit forecast for 2021-23 unchanged, with a net profit of 1.2 billion yuan, corresponding to the latest closing price, which is 84 times that of 165x104max, and will realize a net profit of 1.2 billion yuan and 2.4 billion yuan, corresponding to the latest closing price. Maintain a "buy" rating.
Risk tips: strategic transformation is not as expected, M & An integration risk, fierce competition in the medical and beauty industry, medical malpractice risk, compliance risk of major shareholders and executives