Tongce Medical (600763): The growth rate is beautiful and the province is expanding gradually
Event: Tongce Medical released the 2018 annual report. The income side met expectations and the profit side slightly exceeded expectations. At the core of the report, the company achieved total operating income of 15.46 ppm, an increase of 31 over the same period last year.1%; realize net profit attributable to shareholders of listed companies.32 ppm, an increase of 53 per year.3%. Brief comment: In 2018, the company maintained rapid growth, the income side was in line with expectations, and the profit side was slightly higher than expected. The size of the company continued to expand, and the number of consultations and unit prices increased significantly. We expect that the increase in the company’s comprehensive customer unit price is closely related to the optimization of the oral business structure and the increase in the proportion of high value-added items. We believe that the company’s gross profit margin in 2018 has improved significantly 武汉夜网论坛 under the synergistic effect of the unit price of customers, the number of consultations and the increase in the proportion of high value-added services.Under the effect of scale, the company attaches great importance to expense control, and the expense ratio decreases slightly during the period, which improves the overall net profit margin. At present, the age structure of the branch offices of the company is excellent, and the newly-built branch echelon has entered the period of profit release. In 2018, it is still in the period of accelerated performance, and the company’s performance will promote the introduction of a virtuous circle. Accumulation of medical resources and brand recognition helped to extend the benign operating cycle to promote the foundation of the Dandelion plan. Dandelion plans to accelerate the expansion in the province. In 2018, the dandelion plan progressed smoothly. Ten contracted hospitals have been signed. It will be further implemented in 19 years. Assisted reproduction and ophthalmology business are progressing together, and access to high-quality medical resources is the company’s advantage. Investment advice and profit forecast: We expect the company’s net profit attributable to the parent company to be 4 from 2019 to 2021.4.9 billion, 5.71 billion, 7.1.1 billion, the corresponding EPS is 1.40 yuan, 1.78 yuan, 2.22 yuan, corresponding to the current expectations given an estimated P / E 48.8 times, 38.4 times, 30.8 times, maintaining the “overweight” level. Risk reminders: medical risks, social problems between doctors and patients; risks of medical accidents; risks of complications during the cultivation period of newly built dental hospitals, uncertain economic benefits, etc .; expected risks of expanding the scale of cooperative medical treatment, pledge risks, etc.