The three profit-making medical and beauty hospitals owned by related parties are expected to be included in the statements of listed companies. The company plans to use 337 million yuan in cash to acquire 100% equity interests in three medical and beauty hospitals held by the related party's medical and beauty industry investment fund and global equity investment. The three hospitals in Wuxi / Tangshan / Shijiazhuang have a total income of 130 million yuan / net profit of 2094 million yuan / net interest rate of 16% over the past 20 years, and their profitability is already at the upper-middle level of the industry. If the acquisition is completed, together with the Shanghai Tianda in the body, the listed company will have four medical and beauty hospitals in the body. The asset securitization of the medical and beauty industry chain has begun, and the enterprises with firm layout / efficient implementation / abundant funds / incentives to integrate high-quality resources have a certain first-mover advantage. The company has set up a cross-functional M & A team, is expected to continue to integrate the industrial chain, looking forward to the continued growth of the territory of Medical and Beauty. Give the real estate business a valuation of 28.301 billion yuan (NAV) and a medical beauty of 6.233 billion yuan (based on the comparable company's 21-year PS69 times / company's 45 times), with a total market capitalization of 34.534 billion yuan and a target price of 11.38 yuan.
The company's wholly-owned subsidiary plans to acquire the 100% equity transfer agreement jointly signed by SUNING Global Health and related parties Medical and Beauty Industry Fund (45% owned by the company) and SUNING Global Group, a wholly-owned subsidiary of three hospital companies under the industrial fund. SUNING Global Health plans to acquire 100% equity in Wuxi Suya / Tangshan Suya / Shijiazhuang Suya held by Medical and Beauty Industry Fund and Global Equity Investment in cash. The transfer price is 1.3 billion yuan for 0.94 billion yuan, for a total of 337 million yuan. The Medical and Beauty Industry Fund and SUNING Global Group promised that the total net profit of the three hospitals in 21-23 years was 0.22 million yuan. If it is not completed, it will be compensated in cash according to certain rules. The competition in the Beijing medical and beauty market is relatively fierce and the drainage cost is high. The profitability of Beijing Suya, which is controlled by the industrial investment fund, needs to be further improved and will not participate in this transaction for the time being. We estimate that if the profit of Beijing Suya improves and the time is ripe, it is expected to be injected into listed companies.
The 20-year overall net interest rate of the proposed injected assets is 16%, and the 20-year total income of Wuxi / Tangshan / Shijiazhuang Hospital in Wuxi / Tangshan / Shijiazhuang Hospital is 130 million yuan / net profit 2094 million yuan / net interest rate 16% X 21H1 income 6970 yuan / net profit 8.07 million yuan / net interest rate 12%. In 2016-17, the company concentrated on the distribution of medical and beauty hospitals, and in 17 years, it began to strengthen the standardization of systems and norms around the unified medical brand Suya Meimei. In the past 20 years, the profitability of 3 hospitals has been in the middle and upper level of the industry (5%, 20%). The company's internal practice has achieved remarkable results. The company has set up a cross-functional M & A team, and the follow-up resource integration of the medical and beauty industry is expected to continue, and experience / incentives / funds will help lay the momentum for the long-term development of the medical and beauty business.
The territory of the medical and beauty business is expected to continue to expand and maintain the overweight rating.
The acquisition has yet to be approved by the shareholders' meeting and will not be included in the profit forecast for the time being. The real estate business is valued by NAV, the reasonable value is 28.301 billion yuan, and the scenario hypothesis is used to predict the company's medical and beauty income of 140 million yuan in 21 years. By using the PS valuation method, the company's 21-year average PS (Wind consensus expectation) is 69 times, and the medical and beauty business is 45 times 2021PS, with a reasonable value of 6.233 billion yuan. The fair value of the company is 34.534 billion yuan, the original target price is 11.38 yuan, and the "overweight" rating is maintained.
Risk hints: regional real estate market fluctuations, the actual medical and beauty business landing rhythm and scenario assumptions there is a large gap, medical mergers and acquisitions are not expected, the risk of loss of key personnel.
