\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 88 Winner Medical Co.Ltd(300888) )
Event: the company plans to use its own fund of 652 million yuan to acquire 65.6% equity of Hunan Ping An medical equipment, and use its own fund of 100 million yuan to increase capital to the target company. After the transaction is completed, the company invested 752 million yuan in total to hold 68.7% equity of Hunan Ping An medical equipment.
Comments:
Ping An medical equipment is a leading enterprise of injection and puncture consumables, with a leading market share in the region. Hunan Ping An medical equipment is mainly engaged in the R & D, production and sales of injection and puncture medical consumables (including syringes, infusion sets, blood collection vessels, blood collection needles, indwelling needles and other products). It has 39 medical device registration certificates and 24 patent certificates. In 2021, Hunan Ping An medical equipment achieved a sales revenue of 360 million yuan and a net profit of 85.03 million yuan. Its business covers China and overseas markets, among which it has a leading market share in the hospital market of Hunan Province. With the increasing number of medical consumables and low-value products, China's medical puncture industry has the largest prospect.
Robust and safe medical equipment will realize multi-directional complementarity of product channel manufacturing. (1) Products: this acquisition will fill the company's product gap in the field of injection and puncture consumables, match with the original products, and provide one-stop customized solutions to the hospital; (2) Channel: the target company has a leading hospital market share in Hunan Province and forms a complementary channel with the company's national hospital network; At the same time, Winner Medical Co.Ltd(300888) can fully empower the target company by using its own high-quality overseas customer resources and TOC channel resources such as Chinese pharmacies and e-commerce; (3) Manufacturing: the company will use its own intelligent manufacturing, digital operation, procurement and supply chain management experience to enable the target company to expand production capacity and accelerate performance growth.
Setting commitment terms for subsequent transactions is conducive to the stability and win-win of the core team of M & A targets. This acquisition is based on the pricing of all equity of Hunan Ping An medical equipment before capital increase of 995 million yuan, corresponding to its P / E ratio of about 11.7 times in 2021. The company plans to promote Hunan Ping An medical equipment to sign an investment agreement with the people's Government of Li County, Hunan Province, and build supporting facilities such as medical equipment production line, intelligent warehouse and R & D building. The total investment of the project is about 700 million yuan. If the target company's compound annual growth rate of deducting non net profit from 2021 to 2026 is greater than or equal to 10%, and the company still holds the equity of the target company and is approved by the regulatory authority, when the retained shareholder puts forward a written request, the company shall take 12 times of the target company's deducting non net profit in 2026 as the estimated value in 2027 and acquire the remaining part or all of the equity.
Investment suggestion: the company continues to deepen the layout of medical products and accelerate business growth by making up for weaknesses. Affected by the normalization of epidemic prevention products and the impact of the epidemic on stores, the performance is under pressure in the short term and the long-term high-quality growth can be expected. We maintain the profit forecast. It is expected that the net profit attributable to the parent company in 22 / 23 / 24 will be RMB 1.38/16.2/1.9 billion, corresponding to 19 / 16 / 14 times of the current market value PE respectively, maintaining the "buy" rating.
Risk tip: the epidemic affects consumption, overseas demand slows down, and the prices of raw materials and shipping rise.
