Meinian Health (002044): Periodic adjustments in business are waiting for new products
The 2019H1 results are basically in line with our expectations. Midea Health announced its 2019H1 results: operating income of 36.41 ppm, a ten-year increase4.48% (comparative caliber increase in the second half of the year.93%); net profit attributable to the parent company was 16.84 million yuan, a year-on-year decrease of 98.32% (comparable caliber fell 89 in the second half of the year.40%), corresponding to a profit of 0.01 yuan.The company’s forecast for the third quarter of 2019 results is expected to achieve net profit attributable to the parent company from January to September2.85-4.20 ppm, ten years -31.14%?1.48%.The first half performance was basically in line with our expectations. Development Trends Operational adjustments are to be made, waiting for new product development.The first half of the medical examination industry is a traditional off-season. In 2018H1, the company increased its maintenance and promotion efforts to create a high base, and after the impact of the industry in 2018H2, two groups of short-term choices of the public hospital system chose the public hospital system. The company’s 2019H1 saw periodic operational adjustments.Under comparable calibers, the company’s revenue and net profit increased twice in the first six months.93% / 89% decrease, deducting non-net profit decreased by 251%, the change in fair value is the main source of the company’s non-recurring profit and loss, of which there was no significant non-recurring profit or loss in the second quarter of 2019.The period expenses are well controlled, and the rate during the first half of the year is 39.26%, basically the same as last year.Operating cash flow-6.4.0 billion, down 101% before.We expect that through the improvement of the company’s internal control system and the fading of the industry shock, the company’s newly launched “Menian Good Doctor” and “1 + X” series will promote the development of various maintenance services and the improvement of the overall operating quality. Chains continued to advance, and the prices of customer orders rose steadily.As of the end of June this year, the company has set up 684 medical examination centers (including under construction) in 311 cities across the country.Among them, the company controls 288 (earlier +32), shares 305 (+13), and is under construction 91 (+6).At the camp maintenance center, there are 306 first- and second-tier cities, 287 third- and fourth-tier cities, and more extensive development space for third- and fourth-tier cities.At present, the company’s US $ 200 million debt issuance is smooth, and the private meeting has already passed. It is expected to obtain approval and issue from September to October.With the funding in place, chain expansion will continue to advance in the next few years.Affected by the impact of the industry, the company’s maintenance during the off-season in the first half of the year was relatively conservative. The total number of physical examinations of the company was 10.38 million, which was basically the same as that of last year.The price of passenger orders increased steadily, with an average passenger price of 499 yuan per person in the first half of the year (+17 yuan from the same period last year).The unit price of group inspection customers is 480 yuan / person (+63 yuan), and the unit price of individual inspection customers is 609 yuan / person (+38 yuan). Through the continuous promotion of individual inspection, the company’s unit price is expected to further increase. The core development logic has not changed, and consolidating the foundation is more conducive to long-term development.The chain expansion of third- and fourth-tier cities and the promotion of individual inspection services continue to be promoted as the company’s long-term development strategy.Grass-roots operating costs and software and hardware advantages will help the company expand its leading edge and improve the quality of its operations; the promotion of the individual inspection business will help increase customer unit prices, and also greatly increase customer stickiness.The short-term expansion pace and the solid foundation of management are conducive 杭州桑拿 to long-term development. Earnings forecast and forecast remain unchanged. EPS is expected to be 0 in 2019/2020.27 yuan, 0.36 yuan, an increase of 22% / 33% each year, the current corresponding corresponding 2019/2020 P / E ratio is 45x / 34x.Taking into account the upward movement of the estimated center of the pharmaceutical sector since the third quarter of 2019, we raise our target price by 13% to 13.50 yuan, corresponding to 2019/2020 price-earnings ratio of 50x / 38x respectively, maintain outperform industry rating. Management risk in the process of risk chain expansion; uncertainty of the company’s C-end conversion cycle.