\u3000\u30 Zhongyan Technology Co.Ltd(003001) 43 Inkon Life Technology Co.Ltd(300143) )
The company’s overall performance has been stabilized and the group has made great progress
The company started with edible fungus business, reorganized and acquired masip in August 2015, reorganized and stripped of edible fungus business in January 2017, and transformed tumor radiotherapy equipment and tumor medical services with the strategy of “one body and two wings”. After the actual controller was changed to Haier Group in 2019, the company was incorporated into Haier’s great health ecological brand “Yingkang life”. In the first three quarters of 2021, the company achieved a total operating revenue of 492 million yuan (year-on-year + 0.84%), and a net profit attributable to the parent company of 100 million yuan (year-on-year + 135.94%).
Medical services: “1 + N + n” strategic layout of hospitals and radiotherapy centers. Single hospitals are replicable, and the performance can be realized after stripping loss making hospitals
At present, there are three single hospitals in the company: 1) Sichuan Friendship Hospital: a large mature hospital under the company, holding 100% of the shares, with an operating revenue of 322 million yuan in the first three quarters of 2021; 2) Chongqing Huajian Youfang hospital: the company holds 51% of the shares and achieved an operating revenue of 66 million yuan in the first three quarters of 2021; 3) Suzhou Guangci Cancer Hospital: the company was officially incorporated into the listed company in November 2021, with revenue of 395 million yuan (year-on-year + 17%) in 2020 and 237 million yuan in the first half of 2021. It is expected to continue to contribute revenue in the future; In addition, the company manages Yuncheng first hospital and Changchun Yingkang hospital, which is expected to increase its performance. In 2021, listed companies will strip Changsha Yingkang, Hangzhou Yikang and Changchun Yingkang into in vitro incubation, and the financial data of listed companies are expected to improve. At present, both Sichuan Friendship Hospital and Yuncheng first hospital have internet medical qualification. In the future, the synchronous development of Online + offline will further improve the influence of the hospital.
Medical devices: the gamma knife product matrix is becoming more and more abundant, and the existing products are in large quantities
Masip, a wholly-owned subsidiary of the company, provides radiotherapy equipment support for the company. At present, it has three head body gamma knife products; Focusing on R & D, the R & D investment in the first three quarters of 2021 was 210628 million yuan (year-on-year + 80.36%); Pay attention to product innovation iteration, layout medical linear accelerator will be approved soon, and protom proton knife is expected to be introduced into China. In the first three quarters of 2021, the company’s medical device sector achieved a revenue of 47.22 million yuan. In the future, with the liberalization of the supervision of large-scale medical equipment configuration and the rise of demand, masip’s gamma knife products are expected to usher in a large volume, and the sales performance is expected to boost.
The growth of industry profits slowed down, and the company’s valuation premium depended on “management dividend”
1) demand: the increasing aging of the population, the increasing number of new cancer patients, the improvement of per capita consumption level, the increase of per capita medical and health care expenditure and other factors push up the people’s demand for cancer medical services; 2) Supply: as a representative of serious medical treatment, tumor medical services are naturally subject to strong policy supervision and high industry barriers to isolate new entrants, so as to reduce the pressure of industry competition for players in the track; Oncology medical resources are scarce and unevenly distributed. Patients naturally tend to choose public hospitals, resulting in the current situation of full patients and scarce medical resources. The company is expected to undertake patient overflow in public hospitals with fine differentiated services, establish a good reputation and form a scale effect.
Investment advice
We are optimistic about the company’s ability of integrated and coordinated development of dual business lines, and give a “buy” rating for the first time; We expect that the company will realize operating revenue of RMB 1.11/14.1/1.78 billion and net profit attributable to parent company of RMB 165258/331 million respectively in 21 ~ 23 years, corresponding to P / E46 / 29 / 23x; Corresponding to eps0 26/0.40/0.51。
Risk tips
The performance of the acquired hospital is less than expected; The climb of extracorporeal hospital was less than expected; Policy risk
