\u3000\u3000 Ningbo Sanxing Medical Electric Co.Ltd(601567) (601567)
Event overview
On January 24, 2022, Ningbo Sanxing Medical Electric Co.Ltd(601567) issued the fifth restricted stock incentive plan (Draft), which plans to grant a total of 9.9 million shares to 170 core members of the company’s smart power distribution business, accounting for 0.71% of the company’s total share capital; Among them, 8 million shares were granted for the first time, accounting for 0.57% of the company’s share capital; 1.9 million shares are reserved. The grant price is 7.56 yuan / share. Based on the non net profit of intelligent power distribution deduction of RMB 454 million in 2020, the assessment target value of the company is: the growth of non net profit of intelligent power distribution deduction of no less than 30% / 70% / 120% from 2022 to 2024, that is, the non net profit of intelligent power distribution deduction of no less than RMB 591 million / RMB 772 million / RMB 1 billion in 2022. The trigger value is 80% of the target value. The amortization cost of restricted shares is expected to be 25.13 million yuan, 14.69 million yuan, 5.8 million yuan and 770000 yuan from 2022 to 2025.
Event comments
1) the target growth rate of the company’s equity incentive plan for electricity meter business is high. Based on the deduction of non net profit of RMB 454 million from smart power distribution in 2020, the assessment target value of the company’s equity incentive plan is that the deduction of non net profit from smart power distribution will increase by no less than 30% / 70% / 120% from 2022 to 2024, and the deduction of non net profit from 2023 to 2024 will increase by 30.63% and 29.53% respectively year-on-year, which is much higher than the historical growth rate of business in smart power distribution. The company is a leading enterprise in China’s electricity meter business, which fully benefits from the good of the electricity meter industry. As a leading enterprise in the electricity meter industry, the company fully benefits from the new rotation cycle of smart meter related products opened in 2018 and the relevant requirements of “high-quality development of power Internet of things” put forward by the state in the key tasks for 2020.
2) the revenue of the company’s electricity meter business has increased steadily over the years, providing sufficient cash flow for the company and supporting the expansion of the company’s rehabilitation business. In 2015, the company officially set foot in the medical service sector through the acquisition of Ningbo Mingzhou hospital. At present, it has acquired 3 rehabilitation hospitals in vivo and established more than 20 rehabilitation hospitals with in vitro fund, forming a relatively perfect model in the single operation of rehabilitation hospitals. According to the assessment objectives of the fourth restricted stock incentive plan, listed companies will add 10 hospitals every year from 2022 to 2024. With the support of sufficient cash flow of the company’s electricity meter business, the certainty of the expansion of the company’s rehabilitation medical services will increase.
Investment suggestion: the performance certainty of the company’s electricity meter business is improved under equity incentive. Medicare payment in DRGs
Under the mode reform, under the pressure of improving the bed turnover rate, public hospitals are expected to transfer the postoperative rehabilitation business outside the hospital, Ningbo Sanxing Medical Electric Co.Ltd(601567) as a private rehabilitation medical leader will benefit from this, so as to improve the passenger flow. We predict that the revenue from 2021 to 2023 will be 8.02 billion, 9.87 billion and 11.5 billion, and the corresponding net profit will be 803 million, 961 million and 1.183 billion. Maintain a “recommended” rating.
Risk warning: covid-19 epidemic situation in the world is repeated; The acquisition of the company’s hospital was less than expected; Macroeconomic development was less than expected.
