Yuyue Medical (002223)： Maintaining high performance and optimistic about long-term growth potential
Posted On 03/21/2020
Yuyue Medical (002223): Maintaining high performance and optimistic about long-term growth potential
The event company released the 2018 annual report. The company released the 2018 annual report, and achieved total operating revenue of 41 in 2018.8.3 billion, an increase of 18 over the same period last year.12%; Realize net profit attributable to shareholders of listed companies.2.7 billion, an increase of 22 over the same period last year.82%; Net profit attributable to shareholders of listed companies reduced non-recurring gains and losses.42 ppm, an increase of 25 in ten years.26%; basic return is 0.73 yuan, an increase of 23 over the same period last year.73%.The company intends to distribute a cash dividend of 1 per 10 shares to all shareholders.50 yuan (including tax), no bonus will not be transferred. A brief review of the company’s performance achieved rapid growth, in line with our expectations that the company will achieve operating income in 2018, net profit attributable to mothers and net profit attributable to non-parents.8.3 billion, 7.2.7 billion and 6.42 trillion, an increase of 18 over the same period last year.12%, 22.82% and 25.26%.In the fourth quarter alone: operating income for the fourth quarter of 2018, net profit attributable to mothers, net profit attributable to non-mothers increased by 18 respectively.13%, 56.32%, 53.64%, an increase from the previous quarter. All product lines have achieved stable growth, and online business has maintained high growth. View by product: The home medical sector is growing by 17 per year.05%, the medical breathing and oxygen supply sector increased by 26 per year.40%, the medical clinical sector has grown in ten years.28%, foreign trade products increased by 6 in ten years.62%.The four major business segments accounted for 36% of revenue.66%, 31.53%, 24.57% and 6.62%. In the home medical sector: the online platform’s performance exceeded the growth rate of more than 40%, and the offline platform achieved a growth of more than 10%.In the third quarter of 2018, the company resumed its own internal operation of the Tmall flagship store. The digestion of channel inventory had a certain impact on the growth rate of online business, but it remained above 40%, showing strong growth momentum.The company’s core products continue to grow rapidly. New products such as temperature guns, electric wheelchairs and other existing channels are being used. We expect the growth rate of sphygmomanometers to be about 30%, the growth rate of oxygen generators to be more than 25%, and the growth rates of blood glucose meters and test strips to exceed50%. In terms of clinical medicine: the hospital’s in-hospital disinfection and infection control business and TCM equipment business have maintained rapid growth. Relying on the strong growth of the Chinese market, Shanghai Zhongyou’s in-hospital disinfection and sensory control business revenue has reached 5.24 ppm, an annual growth rate of 25%; the sales of TCM equipment business in Suzhou Supplies Factory reached 2.14 ppm, a year-on-year increase of 22%; AED medical emergency global business revenue reached 1.3.5 billion, the domestic market growth rate is more than 180%, AED products have achieved profit; Shanghai Medical Devices (Group) Co., Ltd. reported a slight decline in operating results due to technical reforms on the main production lines and other reasons. It is expected that the performance in 2019 will steadily increase. The gross profit margin remained stable, and the company reported a significant increase in cash flow. The gross profit margin of the company’s sales was 40%, which was basically the same as the same period last year.Expenses for reporting statutory companies9.50,000 yuan, an increase of 19 in ten years.51%, mainly due to the combined effect of the annual increase in sales expenses and the additional reduction in financial expenses. Among them, the increase in sales expenses was mainly due to the company’s expansion of marketing system construction and brand promotion in the report, and the decrease in financial expenses was mainly in US dollars during the reporting periodDue to appreciation.R & D costs increase by 20 per year.98%, mainly due to the company’s continuous increase in new product research and development, improve product competitiveness, and increase investment in research and development costs.The company tightened its sales rebate policy in 2018, strengthened accounts receivable management, and realized net cash flow from operating activities.98 ppm, a 229-year increase.68%, while achieving rapid growth in operating performance, continue to improve the company’s operating quality, which is the basis for the company’s sustained and stable growth. It is expected to maintain rapid growth in 2019. We believe that the main driving forces for the sustained and rapid growth of long-term companies include the continuous enrichment of product lines, the continuous improvement of marketing system construction, and successful mergers and acquisitions to contribute to incremental performance.According to the company’s financial statements, it is expected that consolidated operating income after tax is expected to be 49 in 2019.5 (an increase of 18 per year.34%), and it is expected to realize the net profit attributable to shareholders of listed companies after the merger tax.70,000 yuan (10-year growth).67). Looking forward to 2019: 1) In terms of product lines: independent research and development + cooperative mergers and acquisitions, the product line will be further enriched.The company will rely on German, Shanghai, Suzhou and other research and development centers to launch new products and increase product categories. The other party will re-adopt channel synergy products through cooperative research and development, technology release, acquisition and merger and other methods, and promote the German subsidiary PRIMEDIC.AED product localization progress. 2) In terms of the marketing system: the household segment will strengthen online and online integration, the clinical segment will promote the construction of a sales platform, and the marketing system will further mature and improve.1) In the home medical sector, the company will continue to strengthen the integration of online and offline business, extend the establishment of offline experience stores, strengthen the company’s right to strengthen offline channels, improve product sales capabilities and brand influence. The other side also hasIt is conducive to improving product exposure and driving online business growth.It is expected that in 2019, the company will launch the same online and offline products with the same price, strengthen terminal management and control, increase terminal staffing and expenses, while maintaining the rapid growth of the existing online segment, achieve sustained and stable growth of the offline segment.2) In the clinical sector, the company will continue to improve the hospital’s clinical system construction, information exchange, and resource sharing, and establish a five-in-one clinical sales platform with surgical instruments, in-hospital disinfection and sensing, in-hospital first aid, clinical consumables and traditional Chinese medical equipment. 3) In 2019, the company will continue to implement the sales excess reward system and partner business system, continue to promote brand strategy, implement brand marketing planning in various directions, create brand marketing advantages, and create a highly competitive marketing system. 3) In terms of mergers and acquisitions integration: Actively promote the integration of acquisition targets and promote mergers and acquisitions in a timely manner.The scope of previous company mergers and acquisitions has penetrated from home medical equipment to clinical medical equipment and the good life sector. Mergers and acquisitions have been successfully integrated and accumulated experience in substitution.In 2015, the acquisition of Shangji Group was completed, the acquisition of Shanghai Zhongyou was completed in 2016, and the investment in the acquisition of Manggs Metrax and Amsino Medical was completed in 2017. In 2019, the company will strengthen post-merger integration and pursue the management of seeking common ground while shelving differencesThinking, strategically optimizing the allocation of resources in all aspects, realizing the replacement of the upper and new high-level machinery groups, the landing of the production line of the upper-level machinery group and Shanghai Zhongyou in Danyang, and the localization of the technology and manufacturing of the German Promecon AED productsIn terms of mergers and acquisitions, the company will focus on those that have leading technology in the medical clinical field, have channel synergy effects or have a leading position in subdivided fields, and those that have architecture.The company’s current goodwill balance is 73.639 million yuan, accounting for 10 of the company’s assets.65%, there is no large amount of impairment. Continue to be optimistic about the brand value and growth ability of the company’s home appliance faucets. We believe that the company has established brand and channel barriers through the implantation of blood pressure meters, blood glucose meters, oxygen generators and other home medical device products. In 2018, it launched new products such as thermometers and electricWheelchairs are expected to achieve volume through existing channels in the future, and multiple products in research are expected to provide momentum for continued growth in performance. The clinical medical sector is a new area of the company’s key layout. Through product mergers and acquisitions, its product line is gradually improved. It is expected that the subsidiary Shangji Group will achieve performance growth after the technical transformation is completed. At the same time, other core subsidiaries will jointly promote the growth of the clinical medical sector.The home appliance sector creates synergy.It is expected that the company’s capacity relocation in mid-2019 will effectively solve the company’s and core subsidiaries’ capacity transfers and provide strong capacity support for the company’s rapid development of future business operations.As a leading domestic appliance company, the company has formed a brand and channel barrier. In the long run, it strives to achieve rapid and stable development under the internal production + epitaxial two-wheel drive. We maintain BUY rating and we expect the company’s operating income to be 49 in 2019-2021.78, 59.73, 71.09% ten percent, with annual growth of 19%, 20% and 19%; net profit attributable to mothers is 8 respectively.76, 10.56 and 12.71 ppm, an increase of 20 in ten years.5%, 20.5% and 20.4%; realized EPS are 0 respectively.87, 1.05 and 1.27 yuan, PE is 28, 24 and 20 times, maintain BUY rating. Risks suggest that new product launches are slower than expected, and mergers and acquisitions 北京夜生活网 integration is slower than expected.