\u3000\u3000 Winner Medical Co.Ltd(300888) (300888)
Winner Medical Co.Ltd(300888) : a big health enterprise driven by medical treatment and consumption
Over the past 30 years since its establishment, the company has continued to innovate and expand its industrial boundary around "one cotton". It has developed from a single OEM exporter of gauze medical dressings to a large health leading enterprise in the research and development, production and sales of cotton products, the combination of independent brands + OEMs and the coordinated development of medical + consumer sectors. It operates three major brands " Winner Medical Co.Ltd(300888) winner" and "PurCotton all cotton era" "Pureh2b Jinliang life".
Medical consumables business: China's medical consumables benchmark, force its own brand, and focus on building five explosive products
The company started with the OEM export of medical dressings and established its advantages in the field of traditional business. In 2000, the company established its own brand and made efforts in the markets of the mainland and developing countries in Asia, Africa and Latin America. The brand scale is leading in China. On the product side, the company focuses on creating five explosive products, including plane masks, N95 masks, protective clothing, high-end dressings and disposable surgical combination bags. In terms of high-end dressings, the number of certificates held by the company is leading the industry, and it is expected to gradually release the performance increment; The penetration rate of disposable surgical kits is still low. Compared with developed countries, there is three times room for improvement and growth can be expected; Protective articles contributed a large increment during the epidemic period. At present, the company has gradually developed applications in daily life and industrial fields. On the channel side, under the catalysis of the epidemic in 2020, the popularity of the company's own brand has been further improved, the hospital channel coverage has increased, and the C-end has increased rapidly, promoting the accelerated growth of medical business.
All cotton era: the medical background is blessed, and the brand, products and channels are fully developed
The cotton era inherits the medical background of the group, focuses on mothers and infants in the early stage, becomes a leading brand in the subdivided field, and gradually expands to the whole cotton category in the follow-up. On the product side, the sales volume of the core product cotton soft towel has been the first in the industry for 12 consecutive years, with significant advantages in brand, technology and cost. At present, the market penetration of cotton soft towel face towel paper is about 10.8%, and there is still much room for improvement; The recognition of sanitary napkin products continued to improve, ranking sixth in tmall women's care in double 11 in 2021; Textile products are mainly standard products, and adult clothing and infant clothing have maintained rapid growth. In addition, the sales of close fitting underwear with high requirements for body feeling and quality have also increased rapidly, showing the strength of "all cotton". On the channel side, the growth of traditional online platforms is stable, and the performance of self owned platforms such as private domain applets is outstanding. The number of private domain members has reached 16 million. Offline, the company plans to open its franchise in 2022, and is expected to add 120 stores. At the same time, it will actively layout potential channels such as supermarkets, month center and community stores.
Investment advice and profit forecast
The company's medical and consumer sectors have developed in a coordinated manner, taking a leading position in the field of medical dressings. The consumer goods business has developed rapidly, has obvious advantages in the field of maternal and infant segmentation, and gradually expands other household consumption. We expect that from 2021 to 2023, the company will realize revenue of 8.244 billion yuan, 9.974 billion yuan and 11.793 billion yuan, and net profit attributable to the parent company of 1.344 billion yuan, 1.597 billion yuan and 1.906 billion yuan. With reference to the valuation of comparable companies, pe25x in 2022 is given a "buy" rating corresponding to the target price of 93.5 yuan.
Risk tips
The industry competition intensifies, the channel expansion is less than expected, the epidemic situation is repeated, and the performance of new products is less than expected.
