\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 88 Winner Medical Co.Ltd(300888) )
Event: in order to further enrich the company's product line, expand business channels outside China and improve the company's strategic layout, the company plans to use its own funds of about 730 million yuan to acquire its 55% equity in Zhejiang Longtai Medical Technology Co., Ltd. from Mr. Wu Kangping, Ms. Huang Lepei and Mr. Wu di. The parties to the transaction have signed the equity transfer agreement on Zhejiang Longtai Medical Technology Co., Ltd. on April 8, 2022.
Category synergy is strong, and the matrix of high-end dressing products is further enriched. Longtai medical's main business is the development, production and sales of high-end wound dressing (including silicone foam, hydrocolloid, silicone gel, hydrogel, film applicator and stoma). It has the industry's leading R & D, production and sales capabilities, and has gained high recognition from the international market and China's high quality customers. In 2021, Longtai medical achieved a sales revenue of more than 350 million yuan, of which the total sales revenue of high-end wound dressing products exceeded 280 million yuan, ranking a leading position in the industry among China's high-end wound dressing enterprises. In 2021, Longtai medical achieved a net profit of 86.374 million yuan, with a net interest rate of 24.4%. As the target company's customers are mainly overseas b-end major customers, with low expense rates and strong profitability, it is expected that the acquisition will play a positive role in improving the overall profitability of the company.
The domestic and foreign sales channels of 2B business are highly complementary, and the market share is expected to increase. In terms of export sales, Longtai medical's business is mainly export-oriented, and its major overseas customers are mainly the world's top 500 enterprises in the European and American markets, with low coincidence with the company's original customer groups. Both Longtai medical and the company are the first batch of Companies in China to develop, produce and export high-end wound dressings. They have a long-term stable accumulation of high-quality customers in this field. It is expected to form a leading effect through sales and product research and development, and obtain a greater market share in the export field of high-end dressings. In terms of domestic sales, China's Hospital high-end wound dressing market is still in the initial stage of rapid growth. At present, it is dominated by overseas brands. With the increasingly comprehensive coverage of medical insurance and the deepening understanding of products by doctors and nurses, the production cost advantages of Chinese manufacturers are expected to continue to play, with great market growth potential and import substitution space. Longtai medical has more than 600 hospital customers, while Winner Medical Co.Ltd(300888) covers more than 4000 hospitals. The brand reputation is recognized by the top 100 hospitals in China. In addition to Winner Medical Co.Ltd(300888) existing wound care, operating room consumables, disease control and protection products and disinfection and cleaning products, the two sides work together to build a comprehensive one-stop service and strive to become the preferred brand of Chinese hospitals.
Winner Medical Co.Ltd(300888) c-end product platform is of high quality, which fully strengthens the new product promotion ability of the target company. With more than 20 years of clinical experience, Mr. Wu Kangping, founder of Longtai medical, in addition to designing and innovating high-end wound dressings and other products, has also actively developed a complete set of solutions for household stoma, wound care and skin management, which has sufficient market space in the field of home patient care. The company's " Winner Medical Co.Ltd(300888) " and "cotton era" brands have a solid C-end user base, of which Winner Medical Co.Ltd(300888) covers more than 120000 pharmacies and has more than 9 million online fans; There are more than 330 offline stores in the cotton era, with a total of more than 35 million members Winner Medical Co.Ltd(300888) will empower Longtai medical based on its own brand power, membership base, all-round sales channels and digital operation ability to solve pain points for users and create relevant home health care solutions.
With a view to long-term steady growth, synergy and win-win results can be expected. The corporate culture and business philosophy of the company and the target company are consistent. After the acquisition, the company plans to fully maintain the original business advantages of Longtai medical while enhancing management coordination. After the acquisition, the company will set up a five-year performance evaluation period for the target company. The annual compound growth rate of the audited consolidated deducted non net profit of the target company from 2021 to 2026 is greater than or equal to 5%, or the audited cumulative consolidated deducted non net profit from 2022 to 2026 is greater than or equal to RMB 470 million. The company will take the corresponding multiple of the audited consolidated deducted non net profit of the target company in 2026 as the valuation of the target company in 2027, Purchase all the remaining equity of the target company held by Party B in the form of stock and cash combination. The long performance appraisal cycle shows the company's confidence in giving full play to business synergy and achieving steady growth.
Profit forecast and investment suggestions. It is estimated that the EPS from 2021 to 2023 will be 2.98 yuan, 3.81 yuan and 4.86 yuan respectively, and the corresponding PE will be 20 times, 16 times and 12 times respectively, maintaining the "buy" rating.
Risk tips: the risk of sharp fluctuations in raw material prices, the risk that the synergy effect of the acquisition business is not as expected, the risk of continuous rise in shipping prices, and the risk of large exchange rate fluctuations.
