Winning Health Technology Group Co.Ltd(300253) (300253)
1、 Event overview
On November 25, 2021, Winning Health Technology Group Co.Ltd(300253) announced that it planned to acquire 49% of the equity of Chongqing Weining, the company’s holding subsidiary held by Wu Yixun and other three people, with its own capital of 60.368 million yuan. After the acquisition, the shareholding ratio of the company will change from 51% to 100%.
2、 Analysis and judgment
With the help of the two expansion modes, Weining accelerates the scale of regional coverage across the country
Winning Health Technology Group Co.Ltd(300253) for regions with low business coverage, two expansion methods are mainly adopted: (1) the company acquires leading companies with local scale and volume, such as Shanxi Tongtong Information Technology Co., Ltd. in that year; (2) establish joint venture subsidiaries with 51% of the company’s shares in corresponding regions, such as Chongqing Weining, Sichuan Weining, etc.
This time, Winning Health Technology Group Co.Ltd(300253) plans to acquire the remaining 49% equity of Chongqing Weining software, the company’s holding subsidiary, which belongs to the second category. On the one hand, it indicates that the company’s Chongqing holding subsidiary has a certain number of active users and revenue and profit scale. At the same time, it also helps the company further improve its control over its subsidiaries and realize the company’s overall external expansion strategy.
It is expected that the company’s acquisition of minority shareholders’ interests of holding subsidiaries will continue in the future, which is often an important sign of the maturity of a regional market
With the business development, the acquisition of minority shareholders’ rights and interests of local holding subsidiaries by the company will continue to occur. In principle, the acquisition object should be the holding subsidiaries that have a certain number of active users, operating revenue and profit scale in the corresponding covered regional markets, and the company team and other elements are in a state of benign development.
Taking the net profit of 12.3208 million yuan of Chongqing Weining as the base and the annual deduction of 20% of the non parent net profit as the basic requirement, the deduction of non parent net profit of Chongqing Weining from 2021 to 2023 shall not be less than 1478400 yuan, 1774080 yuan and 21.289 million yuan respectively; If the net profit increases in the range of 30% – 50%, the actual deducted non net profit of Chongqing Weining in 2023 will be RMB 27.067 million, and Winning Health Technology Group Co.Ltd(300253) will pay an additional cash reward of RMB 25000 for every 10000 yuan increase; If the net profit in 2023 increases by more than 50%, then Winning Health Technology Group Co.Ltd(300253) will pay a one-time additional cash reward of RMB 1041000. Through this gambling agreement, the company aims to further improve the decision-making efficiency of its subsidiaries and better explore the market in Southwest China.
3、 Investment advice
The company recently announced that it has reached strategic cooperation with Fuxing health and acquired Chongqing Weining, a holding subsidiary, to integrate the resources of its subsidiaries to continuously explore the national covered regional market. It is estimated that the company’s revenue from 2021 to 2023 will be RMB 2.910 billion, RMB 3.657 billion and RMB 4.397 billion respectively; The net profit attributable to the parent company is 637 million yuan, 835 million yuan and 1027 million yuan respectively, and the EPS is 0.30, 0.39 and 0.48 yuan respectively. The PE corresponding to 21-23 years is 50, 38 and 31 times respectively, maintaining the “recommended” rating.
4、 Risk tips:
Competition in the medical IT industry intensifies, the promotion progress of the venex platform is less than expected, and the level of hospital it expenditure is less than expected.
