新华医疗(600587):聚焦医疗设备主业 未来发展可期

Xinhua Medical (600587): Focus on the future development of the main medical equipment business and what can be expected

西南證券 ·  02/27  · Researches

Recommendation logic: strengthen the main business, set incentives, and seek development. 1) determine the focus strategy based on the medical device sector and the pharmaceutical equipment sector. The share of the two major sectors in the company's revenue will increase to 50% in 2021, and will continue to increase the share of the main industry and enhance profitability in the future. 2) in 2021, the company issued equity incentives, based on deducting 200 million yuan of non-profit in 2020, and set the growth rate of deducted non-return net profit from 2022 to 2024 to be no less than 85%, 110% and 130% respectively, greatly improving the enthusiasm of the company's employees. 3) the fund-raising project shall not exceed 1.28 billion yuan, which shall be used for the R & D and industrialization of instruments and pharmaceutical equipment.

Medical devices: enrich the stock of products and accelerate domestic substitution. With the arrival of the "discount" policy, the demand for the renewal and renovation of hundreds of billions of medical equipment across the country is about to be released. Under the background of domestic substitution acceleration, the company will further increase its market share. The company's main product line is in a dominant position in China: 1) the market share of infection control equipment is more than 70%, and the scale of the sensor control product line ranks first in the country, providing disinfection supply centers for more than 5000 hospitals and medical institutions. 2) the field of radiotherapy equipment broke the foreign monopoly, and obtained China's first high-energy medical electron linac registration certificate of three types of medical devices, Xinhua Medical became the third in the world to produce high-end radiotherapy products medical linac manufacturers, the domestic installed capacity will be more than 400sets; 3) the imaging field is constantly accurate, independent research and development of radiotherapy special large-aperture spiral CT, to fill the domestic blank. 4) Reserve a variety of instruments to establish long-term development: the Surgical instrument Company is jointly established by Xinhua Medical and German Snake Brand, with more than 12000 varieties and specifications, ranking first in the country. Hemodialysis imported from Germany a full set of dialysis production line, technology and quality level in the forefront of the world. Has a sound animal experimental product line, is the pioneer and leader of the "systematic solution" of domestic animal experimental equipment. In addition, the market share of medical waste high-temperature disposal system is about 70%.

Pharmaceutical equipment: domestic replacement acceleration, profit margin continues to improve. The scale of China's pharmaceutical equipment market has increased from 21.21 billion yuan in 2016 to 35.87 billion yuan in 2020, with an average annual compound growth rate of 14%. According to the revenue scale, the market concentration of China's pharmaceutical equipment industry is low, the competition pattern is scattered, and the opportunity for the company to strive for the top is huge.

Since 2013, the mergers and acquisitions of several subsidiaries have integrated Xinhua Medical in the front, middle and back-end industrial chain of the pharmaceutical equipment sector. in 2020, Xinhua Medical and Pharmaceutical equipment output ranked first in the industry, reaching 18384 units.

2021 company pharmaceutical equipment plate gross profit margin of 27%, subsidiary Chengdu Yingde and Yuanyue medicine machine to significantly reduce losses, gross profit improvement space is significant. In the future, we will gradually make efforts in bio-pharmaceutical equipment and traditional Chinese medicine equipment. Chengdu Yingde provides an overall solution for blood products, which has provided services for more than 90% of the country's blood products companies. Shanghai Yuanyue and Suzhou Zhejiang Yuan provide the overall solution of traditional Chinese medicine extraction, with a market share of more than 30%.

Profit forecast and investment advice. The company's homing net profit is expected to maintain a compound growth rate of 17.9% from 2022 to 2024. Considering that enterprises, as established medical enterprises, will fully benefit from the hundreds of billions of medical equipment demand and the acceleration of domestic substitution of pharmaceutical equipment, it is suggested that attention should be paid to it.

Risk tips: large fluctuations in raw material prices and a sharp rise in labor costs; company orders are not as expected; investment in fund-raising projects is not as expected; the recovery of the epidemic is not as expected; other unpredictable risks.

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