Winning Health Technology Group Co.Ltd(300253) (300253)
1、 Event overview
On December 23, 2021, Winning Health Technology Group Co.Ltd(300253) announced that it planned to acquire 49% equity of Sichuan Weining, the company’s holding subsidiary held by Huang Zijiang, with its own capital of 91.728 million yuan. After the acquisition, the shareholding ratio of the company will change from 51% to 100%.
2、 Analysis and judgment
Wei Ning shot twice in just four weeks to accelerate the coverage of the southwest region
The company has a wide business layout and makes good use of two ways to expand areas with low business coverage. The first is the acquisition of leading companies with relatively formed local scale and volume, such as Shanxi Tongtong Information Technology Co., Ltd; Or acquire the joint venture subsidiary with 51% shareholding of Companies in corresponding regions and realize 100% shareholding, such as the acquisition of Chongqing Weining with 60.468 million yuan of self-use funds on the 25th of last month. This time, Winning Health Technology Group Co.Ltd(300253) continues to adopt the second way, and plans to acquire the remaining 49% equity of Sichuan Weining software, a holding subsidiary, with its own capital of 91.728 million yuan. This move further improves the control of its subsidiaries, realizes the company’s overall external expansion strategy and expands the company’s market share in Southwest China.
It is expected that similar acquisition events will still occur in the future
With the continuous introduction of the recent medical informatization policy, the company has ushered in new opportunities for business development. In order to achieve business development, it is expected that the acquisition of minority shareholders’ rights and interests of local holding subsidiaries by the company will continue to occur, and the standard of benchmarking objects of previous events will continue. In principle, the company should have certain customer accumulation, considerable revenue and profit and vigorous development in the corresponding market. Sichuan Weining achieved a net profit of RMB 166.4 billion in 2020, and promised in the agreement that the deducted non net profit from 2021 to 2023 will not be less than RMB 2038400, 249704 and 30588700 respectively; On the premise of ensuring the realization of the agreed profits, if the month on month growth rate in the first two years is 30% and the net profit deducted in 2023 is in the range of 30% – 50% compared with that in 2022, the actual net profit deducted in Sichuan Weining in 2023 is 36.5581 million yuan. For every 10000 yuan increase, Winning Health Technology Group Co.Ltd(300253) will pay a total additional cash incentive of 25000 yuan; If the net profit increases by more than 50% in 2023, Winning Health Technology Group Co.Ltd(300253) will pay a one-time additional cash reward of 1.4061 million yuan. Through this gambling agreement, the company aims to further develop 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. The acquisition of Sichuan Weining plans to integrate the resources of its subsidiaries to continue to 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 was 635 million yuan, 836 million yuan and 1046 million yuan respectively; EPS is 0.30, 0.39 and 0.49 yuan respectively; The PE corresponding to 21-23 years is 52, 39 and 32 times respectively; Maintain a “recommended” rating.
4、 Risk tips:
Competition in the medical IT industry intensifies, and the level of hospital it expenditure is lower than expected.
