Main points of investment
Formally acquire United Likang and develop medical laboratory business: in January 2016, Qianyuan Pharmaceutical plans to acquire 100% stake in Wuxi United Likang held by Wang Mu and Luo Yafen at a price of 35.06 million yuan, and plans to increase its capital by 5 million yuan. Qianyuan Pharmaceutical distributes medical diagnosis business through the acquisition of professional medical laboratory institutions with professional qualifications and medical laboratory capabilities of medical institutions. In the future, through the combination of Likang's mature medical testing business, the company integrates the existing maternal and child businesses such as pregnancy environment testing and infant gene preservation, and develops the overall solution of medical testing with the help of existing market resources and management team advantages. enhance the company's competitiveness in the field of health.
With a number of patented testing technologies, such as neonatal immune detection, United Likang is based on Jiangsu radiation Yangtze River Delta market: Wuxi Likang is one of the largest independent medical laboratory in Jiangsu Province. it has laboratories in the fields of temporary testing, biochemistry, immunity, molecular biology and pathology, and Wuxi Medical Laboratory Engineering Technology Research Center. At present, United Likang has 4 authorized patents, two of which are applied patents related to glycosylated hemoglobin analysis system, and the other two patents are related to the screening of T cell level and B cell level of neonatal immune system. it is a patented technology for neonatal immune system function screening. Wuxi United Likang testing business is comprehensive, covering a wide range of testing items, including tumor markers, thyroid function, sex hormones, hepatitis, liver function, myocardial enzymes, diabetes, immunity-related, PCR programs and other major diseases. The center also involves infertility, eugenics and other characteristic businesses related to Qianyuan Medicine. Wuxi United Likang's operating income in 2014 and January-October 2015 was 9.92 million yuan and 8.33 million yuan respectively, with a net profit of 1.61 million yuan and 980000 yuan respectively. In 2015, the market share of third-party medical testing is about 3% of the medical testing market. With the favorable policies such as graded diagnosis and treatment, the third-party testing business is developing rapidly. In line with the company's existing maternal and child health business resources and imports, based on United Likang, Qianyuan Pharmaceutical is characterized by the coordinated development of multi-field medical laboratory business.
Profit forecast and investment advice: after the completion of a series of acquisitions, the company is based on providing pregnant women and infants with a complete set of health solutions from pregnancy to infancy, and gradually develop medical laboratory business characterized by multi-field coordinated development of maternal and child health. It is estimated that from 2015 to 2017, the EPS of the company will be 0.23,0.26,0.31 respectively, corresponding to 148.9 times, 128.9 times and 111.1 times of PE.
Risk hints: (1) the risk of corporate governance structure; (2) the risk of product price reduction caused by fierce market competition.