Nanwei Medical (688029): High degree of technological prosperity in the industry to create a domestic minimally invasive diagnosis and treatment leader
Nanwei Medical: a leading domestic endoscopic diagnostic and treatment consumable with rapid growth.
After long-term technological innovation and new product development, the company has established a comprehensive product line around the major invasive and minimally invasive techniques of digestive and respiratory medicine, including: biopsy, hemostasis and closure, EMR / ESD, extended, ERCP, EUS / EBUS class and so on.
The performance achieved rapid growth, with operating income in 20189.
US $ 2.2 billion, a year-on-year increase of 44%, and has 杭州桑拿网 maintained a 10-year growth rate of more than 40% for the third consecutive year; net income attributable to mothers has achieved 1.
92 ‰, an increase of 90% in ten years; net profit after deducting non-attribution to mothers1.
750,000 yuan, a year-on-year growth of 73%.
The “early diagnosis and early treatment” trend of cancer and the growth of the number of domestic mirror diagnosis and treatment in the future will open up the growth space of the minimally invasive diagnosis and treatment industry.
Minimally invasive treatment has the characteristics of less trauma, quicker prognosis recovery, less tumor residue and recurrence rate, etc., effectively avoiding the additional damage caused to patients by traditional surgery.
The high incidence of cancer in the domestic gastroenterology department and the low five-year survival rate of patients are mainly related to the low rate of advancement of microscopic diagnosis and treatment in our country.
In contrast, in Japanese early gastric cancer, the esophageal cancer survival rate reaches 90% within 5 years, and the recurrence rate within 3 years can be controlled below 5%, all benefiting from the endoscopic diagnosis and treatment in the population.
At the same time, the regional differences in the configuration of domestic mirror facilities and doctors are linked, and the overall configuration level is still decreasing.
The expansion and improvement of endoscopy by national policies, the continuous advancement of graded diagnosis and treatment, and the increase in the implementation rate of endoscopy will help release a huge incremental market.
The company’s competitive advantage: comprehensive product line, technology and channels at the same time.
The company’s product line has significant step-by-step properties. Hemostatic closure products and EMR / ESD products such as fast volume drive performance, and inventory products such as biopsy and expansion maintain stable growth.
In various subdivisions, the company has mastered world-class core technologies, with the exception of the second prize of the National Science and Technology Progress Award and the second prize of Shanghai Science and Technology Progress Award.
In terms of channels, the company has established marketing networks in more than 70 countries, such as Europe, the United States, and Japan. The company’s products cover more than 2,900 domestic hospitals, of which the coverage rate of the top three hospitals has reached more than 55%, which has further improved the marketing network.The company’s business scale continued to grow.
Investment advice: We expect the company’s revenue growth from 2019 to 2021 to be 37.
1%, net profit growth was 45.
6%, the corresponding EPS is 2 respectively.
75 and 3.
Using the relative estimation method, comparable companies have Lepu Medical and Kelly, corresponding to 19 and 26 times PE in 19 years.
Considering the prosperity of the company’s industry and the development potential of the company’s technological advancement, we give 23-28 times the PE range in 2019, corresponding to a city size of 64.
30,000 yuan, corresponding to a reasonable range of 48 months is 48.
74 yuan / share.
Risk reminder: New product development is less than expected; uncertainty of Sino-US trade friction affects the company’s overseas performance potential; price reduction caused by the trend of centralized procurement of medical consumables and equipment; intensified cross-domain market competition; patent litigation event risk; new product promotionexpected.