Tongce Medical (600763) 2019 First Quarterly Report Review: Performance Meets Expected Scale 杭州桑拿 Effect
Event: On April 25th, the company announced the 2019 first quarter report, which stated that the company realized operating income3.9.4 billion, an increase of 27 over the same period last year.77%; net profit attributable to mother 0.950,000 yuan, an increase of 53 over the same period last year.71%; net profit after deduction is 0.930,000 yuan, an increase of 51.08%, basically 0 benefits.30 yuan. The scale effect is prominent, and the net profit maintains a high growth. In the first quarter of 2019, the company doubled its operating income27.77%, slightly lower than 31 in the 2018 annual report.05%; net profit attributable to mothers increased by 53.71%, in line with expectations.The increase in profit margin was mainly due to the company’s increase in gross profit margin through the adjustment of its business structure and the further increase in its ability to control fees after the effect of scale appeared. The company’s gross profit margin was 43 at the end of 2018.29% rose to 46.67%, sales expense ratio from 0.71% dropped to zero.65%, management expense ratio from 13.77% dropped to 13.31%. Completed the acquisition of Hangzhou Jiemu, which effectively supports the company’s development strategy. In December 2018, the company acquired 50% equity of Hangzhou Jiemu Equity Investment Management Co., Ltd., and the transfer of equity and debt3.1 ‰ (1 ‰ has been paid in 2018 and 2 has been paid in 2019.10,000 yuan), it is estimated that in 2019, it is necessary to invest 0 in project construction funds.500 million.After completion in 2020, the project will be used as the company headquarters and Hangzhou Stomatological Hospital West VIP Hospital Headquarters Park project to support the company’s development strategy by means of funds and land, which is conducive to the company’s headquarters and Hangzhou Stomatological Hospital Chengxi Hospital’s sustainable operation and stable development. New upgrade of medical services, patients, doctors, and hospitals win-win in 2019.The company will develop the HMO model with general characteristics as a key strategy for future development, realize member-centered integrated medical care and value medical care, and create HMOs in the domestic specialty field. Pattern benchmarking.The medical service has been further improved, the diagnosis and treatment process has been further optimized, the “medical service card” has been introduced, member products have been developed, doctors have been encouraged to participate in the health management of members, and a win-win situation among patients, doctors and hospitals has been achieved. Investment advice and profit forecast Tongce Medical is the only dental listed company in the medical service industry, and its “headquarters + branch” expansion model has high growth certainty.It is estimated that the company’s operating income for 19-21 will be 20 respectively.40/26.91/34.600,000 yuan, net profit attributable to mother 4.47/5.95/7.7 billion.The EPS is 1.39/1.86/2.40 yuan / share, corresponding to 49/37/29 times the PE, maintaining a target price of 83.4 yuan, maintain “Buy” rating. Risks indicate that the dental hospital is newly built, and the progress of mergers and acquisitions is not as expected; the risk of medical disputes.