Yuyue Medical cooperates with Kyushutong: Expands hospital market overweight rating
Yuyue Medical Co., Ltd. announced that it has cooperated with Jiuzhoutong to set up a subsidiary to account for 40% of the shares. The two sides will integrate resources to jointly expand the hospital market, further enhance the company's competitiveness in the clinical device field, and maintain the overweight rating.
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The company announced on August 8 that it signed a cooperation framework agreement with Jiuzhoutong Medical Devices Group Co., Ltd. to establish Jiangsu Jiuyukang Medical Technology Co., Ltd., which holds 40% of the shares and jointly carried out the hospital's in-house smart logistics transformation project.
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Cooperate to expand the hospital equipment market, integrate and promote the performance increase, and maintain the overweight rating. Maintain earnings forecast for 2016-18 EPS to 0.74/0.94/1.13 yuan. After the merger and acquisition of Shanghai Medical Devices Group, the company continued to increase investment in medical equipment, cooperated with Jiuzhoutong, and shared resources to accelerate the expansion. The growth of clinical equipment sector is expected to accelerate. At the same time, the company’s initial increase of 2.527 billion yuan has been reached, and the integrated layout will be more Competitiveness, maintain the overweight rating, consider the advantages of the company's integration platform, give a certain industry premium (industry average 50X), 2016 PE60X, target price of 45 yuan.
Strong alliance to expand the hospital market. The partner is Jiuzhoutong, which is a subsidiary of Jiuzhoutong. In the first half of 2016, the sales volume was about 125 million. Its characteristics are mainly through optimizing the internal management procurement system for the hospital, saving costs and improving efficiency, thus bringing procurement opportunities for agent products. At present, its designed procurement and logistics management information system (HPD) has been promoted and used in some top three hospitals. The company cooperates with its own information, technology, products and hospital resources, and will enhance the competitiveness of the agency platform. At the same time, the medical consumables of Shanghai Machinery Group can accelerate the promotion of hospital channels through the agency platform.
The extension continues to increase, and the layout is accelerated. The Shanghai Machinery Group began to consolidate in July 2015. The revenue in 2016 was 297 million and the net profit was 30.99 million. It is expected to reach 70 million in the whole year.
The company's fixed increase, the internal management and core management and technical personnel of the Shanghai Machinery Group also participated in the subscription, incentive optimization, and further explore the growth potential of the Shanghai Machinery Group. As of the end of June 2016, the company's raised funds of 2.527 billion have been put in place. After the replacement of the previous project, the company's currently unused funds still have 1.938 billion yuan, and the funds for mergers and acquisitions are sufficient. Considering the advantages of the company's platform integration and the resource synergy of Sequoia Investment, it is expected that the extension will continue to advance.
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