Wandong Medical (600055) Annual Report Comments: Core Breeds Achieved Steady Growth in Performance
The performance is in line with expectations, optimistic that 19 will gradually and steadily grow. The company released its 2018 annual report and 2019 first quarter report on April 26, and achieved operating income of 9 in 2018.
5.5 billion (+7.
98%), realizing net profit attributable to mothers1.
5.3 billion (+40.
52%), realizing deducted non-attributed net profit1.
3.7 billion (+59.
56%), with solid performance growth in line with expectations.
In the first quarter of 19, operating income1 was achieved.
6.2 billion (+20.
36%), achieving net profit attributable to mother 0.
0.6 billion (59.
We are optimistic about the company’s long-term steady growth in 2019 and adjust its profit forecast. It is expected that the company’s EPS in 19-21 will be 0.
55 yuan, adjust the target price to 14.
75 yuan to maintain the “overweight” level.
The gross profit margin increased significantly, and the company with a good cash flow situation had a gross profit margin of 43 in 2018.
26pct), mainly due to the increase in the proportion of high-end new product revenue; the decrease in sales expenses.
79pct), mainly due to the company’s optimization of offline channel expansion, promotion of new media brand promotion; management + R & D expenses.
58pct), financial expenses -2.
The company’s net operating cash flow in 2018 was zero.
760,000 yuan, an increase of 197 in ten years.
20%, cash flow is good.
DR growth is stable, superconducting MRI volume is rapidly increasing, new products lead growth 1) DR: The company’s DR sales in 2018 were 1,722 units (+2).
07%), ranking first in the domestic market.
Among them, the yield rate of the new static FPD reaches 90%, accounting for 50% of the DR sales in 18 years.
We expect DR revenue growth to be relatively stable in 19 years; 2) Nuclear Magnetics: 2018 sales of 108 units, ranking second in the domestic market, of which superconducting sales have nearly doubled, and are relatively stable forever.
At the same time, new products are advancing 都市夜网 in an orderly manner, and the company expects a new high-end superconducting nuclear magnetic i_Space1.
5T will be officially listed in 2Q19, Superconducting 3.
0T is expected to start product registration internally in 2019; 3) Others: DRF series tablet restructuring reaches the domestic sales first in 2018; CGO-2100C DSA doubles its sales in 2018; 16-row CT has begun mass production and listingThe amount is small, and it is in the rapid volume phase.
The third-party imaging and intelligent film reading business has been promoted in an orderly manner. Wanliyun, a subsidiary of the company, mainly focuses on remote imaging diagnostic services and third-party imaging center services.Among them, the image diagnosis service business is advancing rapidly, and the total number of online film readings each year exceeds 北京夜网 10 million.
In terms of AI image diagnosis technology, complete the development and testing of AI image diagnosis software for lung CT, osteoarthritis, and healthy lungs.
In terms of third-party image center business, the company has now completed the construction of 15 image centers.
Wanliyun is still in the rapid development stage. In 2018, its net profit has decreased by 14.3 million yuan, and the conversion business has gradually matured. We expect to achieve a breakeven in 2019.
The high-quality target of combining medical devices with artificial intelligence, maintaining the “overweight” rating. Considering that the company’s device products continue to upgrade and lead to performance growth, and its first-mover advantage in the field of medical informatization and intelligent reading is obvious.19-21 net profit attributable to mother is 2.
00 ppm (19, 20 years ago average 1).
47 ppm), an increase of 33% / 23% / 19% in the past, and the current expected corresponding PE for 19-21 is estimated to be 33x / 27x / 23x.
The company is at the forefront of the layout of medical information technology and artificial intelligence, and its performance is strong. It should deserve a certain estimated premium. We give the company a PE variable of 37x-39x in 2019 (comparable company ‘s average PE evaluation in 2019 is 34x), and adjust the target priceTo 14.
75 yuan to maintain the “overweight” level.
Risk reminder: the risk of core product sales falling short of expectations, and the risk of core product tendering and price reduction.