Golden Miles Medical (603882) Report for the Third Quarter of 2019 Review： Net Margin Continues to Improve, Competitiveness of Special Inspection in the Long Term新闻
Golden Miles Medical (603882) Report for the Third Quarter of 2019 Review: Net Margin Continues to Improve, Competitiveness of Special Inspection in the Long Term
I. Event Overview On October 22, 2019, the company released the third quarter of 2019 report: operating income, net profit attributable to mothers, and net profit attributable to mothers after deductions were 39.20 billion, 3.19 billion, 2.59 ppm, an increase of 18 years.17%, 94.16%, 88.25%; of which, in the third quarter realized operating income, net profit attributable to mothers, net profit attributable to 杭州桑拿网 mothers after deduction is 13, respectively.7.7 billion, 1.4.7 billion, 0.97 ppm, an increase of 14 years.49%, 115.54%, 55.86%. Net operating cash flow in the first three quarters3.65 ppm, an increase of 40 in ten years.58%. Second, analyze and judge to optimize the customer and product structure. Persist in the expansion and development, refine the management, expand the scale effect and increase the net profit margin. 1) Optimize the customer structure, and the medical examination business has developed. The company actively optimizes the customer structure and strategically abandons low-quality projects.Revenue from medical diagnostic services was achieved in the third quarter.12 ppm, an increase of 19 per year.47%.The company continues to improve the quality of its customers, with customer yields increasing by 18 per year.8杭州桑拿2%. 2) Focus on the development of high-end projects, and the gross profit margin increased against the background: In the context of gradual decline in the price of medical project services, the company adjusted its product structure, focusing on the development of high-margin special inspection projects such as genomics and pathological diagnosis, to promote the gross profit margin to increase.83pct to 39.86%. 3) Refined reforms expand scale effects, and the expense ratio continues to decrease: The company adheres to refined reforms, and at the same time, scale effects appear, driving the decline in expense ratios during the first three quarters.78pct to 30.65%, sales expense ratio, management expense ratio, research and development expense ratio decreased by 0.36 pieces, 0 pieces 66 pieces, 0 pieces 70pct to 14.99%, 9.18%, 5.90%. 4) Focus on the main channel of medical examination and divestiture product subsidiaries: The company adhered to the main business of medical inspection services. In the third quarter, Jindi Rui, a subsidiary of IVD products, divested 12.46 million yuan of negative assets, and received 29 million yuan in allocation and transfer, thereby contributingInvestment income of about 41.46 million yuan.After deducting the investment income of Jin Yirui, the net profit attributable to mothers will increase by 68 each year.92%. We believe that the company “does and does nothing” in terms of business, products and customers, and continues to optimize the structure, which is the basis for the company’s continuous expansion and development. At the same time, the refined reforms and expansion of scale effects have appeared to make profitability continue to improveNet interest rate increased in the first three quarters.89pct to 8.34% (after non-deduction net profit extension extended 2.17 points to 6.81%).The matching degree between our outstanding current customer structure adjustment strategy and industrial competitiveness may need further verification and tracking. We will also continue to pay attention to the impact of this change on the company’s actual endogenous growth quality. Short-term: preliminary verification of performance inflection points is shown. The driving factors for the new and old laboratories to release performance performance inflection points are mainly the continuous contribution of mature laboratories to increase performance. Among them, Guangzhou Golden Domain, Sichuan Golden Domain, Kunming Golden Domain, and Changsha Golden DomainNet profit of RMB 83.44 million, RMB 27.36 million, RMB 21.6 million, and RMB 15.99 million were realized, an annual increase of 47.80%, 27.31%, 31.94%, 65.13%; and new laboratories are gradually on track, especially the 11 laboratories built in 2014-2016 are expected to focus on profitability and release performance in 2019-2021, with a significant increase in net profit margin.At the same time, due to the rhythm of large capital expenditures, the old and new laboratories turned losses or reduced losses.The current company’s penetration rate and net interest rate are both low, and there is still room for increase in net profit. Medium and long-term: We believe that the special inspection project is the core competitiveness of third-party laboratories. The company adheres to the development path of “stand up to the ground”: 1) Incremental: In grade hospitals, special inspection projects are mainly used as the entrance, and talent and technology are the most important.Ongoing project innovation; 2) Inventory: At the primary level, medical institutions are mainly based on general inspection, exploring cooperation and co-construction models, and diversion of high-quality primary inspection samples. In the context of multi-modal intervention inspection markets such as channel agency, intensive procurement, and regional inspection centers, we believe that third-party medical laboratories with advantages in scale and specialization can eventually replace them. With reference to the development path of overseas ICL, we believe thatThe focus is on sticking to special inspection projects and continuously improving competitiveness. Third, investment advice The company will usher in a short-term performance inflection point and build a core competitiveness of special inspection in the long run.Because the company’s fee control effect is significantly higher than expected, and the investment income brought about by the sale of Jin Ruirui in the third quarter has a performance impact on performance, the performance expectations are raised: It is expected that the EPS for 2019-2021 will be 0.88, 184.108.40.206 yuan, according to the closing price on October 22, 2019, the corresponding PE is 67, 53, 39 times.With reference to comparable company assessments and the company’s industry leading position, maintain a “cautious recommendation” rating. Fourth, risk reminders: the risk of changes in regulatory policies; the risk of market competition; the risk of falling project prices.