Event: on June 3, 2021, the company announced that it planned to use the M & A fund to acquire 51% and 70% of Yuanmei, Merlot and Jiyuan Pharmaceuticals. The founder promised that the average main business income of the target company from 2021 to 2023 was not less than 100 million yuan, and the net profit was not less than 30 million yuan.
Jiyuan Medicine is a professional supplier and service provider of medical and cosmetic products, with "fullerene".
Registered trademark, the main brand "fullerene" series products are widely loved by consumers. Fullerene is a diamond-grade ingredient in the medical field, and its antioxidant capacity is 172 times that of vitamin C. it is known as the "king of anti-aging". Fullerene not only has strong anti-oxidation and anti-aging effect, but also has good whitening, anti-wrinkle, moisturizing, acne and other effects. According to the company's official Wechat, Jiyuan Pharmaceutical is rich in fullerene products, among which "fullerene medical cold application for 5 minutes fade red repair" can be called a necessary "artifact" for post-repair of medical art, and the repurchase rate of household product series is nearly 98% in 2020. According to standing wood information consultation, China's patch medical skin repair dressing market has grown rapidly in the past three years, with a compound growth rate of more than 40%. Through the acquisition of Dalian Jiyuan through M & A funds, the company is expected to strategically break into the medical dressing market, and gradually cut into the lucrative market of medical and beauty products, consumables and equipment.
Strengthen the positioning of "medical and beauty material merchants, science and technology businessmen, service providers", and further deepen the moat. Since the new development strategy of "materials, technology and service providers in the beauty and health industry" was formally established in November 2020, the company has laid out in various directions in the upper, middle and lower reaches of the medical and beauty industry. We believe that this acquisition is expected to further improve the construction of the company's medical and beauty ecological chain, build a moat of the medical and beauty industry, form a closed loop of the industrial chain, and promote the company to further share the growth dividend of the industry.
Profit forecast and investment advice: it is estimated that the EPS for 21-23 years is 0.31 yuan per share, 0.47 yuan per share and 0.73 yuan per share respectively. The corresponding PE is estimated to be 85.60x/55.95x/36.00x. Using the segment valuation method, with reference to the comparable company valuation, the company's main business valuation adds up to a reasonable value of 28.55 yuan per share, maintaining the "overweight" rating.
Risk tips: increased competition; the progress of industrial layout is not as expected; acquisition and integration is not as expected.
