The company released the third quarterly report for 2016. From January to September, the revenue increased by 36.1% to 687 million yuan, and the net profit of the mother returned 33.7% to 96.16 million yuan. Realized earnings per share of 0.24 yuan.
Core view
Revenue growth is in line with expectations, and financial expenses affect profit growth. Benefiting from the consolidation of medical technology and the high level of smart medical business and RFID business, the company's revenue growth in the first three quarters was basically in line with expectations.
However, due to the fact that the private placement has not started the issue and continues to generate financial expenses, and considering the exchange income of Q3 2015, the growth rate of net profit is affected. As the fourth quarter is the peak period for the performance of smart medical business, we expect medical technology to exceed its promised performance, but there are still uncertainties due to private placement, and annual results may be suppressed by financial expenses.
The upgrade of smart medical products has resulted in a steady growth of the original main business. During the reporting period, Medical Technology developed and upgraded various software systems such as “Medical Multi-disciplinary Joint Consultation Software†and relied on the successful sample case of Guangzhou Women and Children Medical Center project to accelerate the promotion of cloud-based intelligent open standard platform “Medical The application of medical health information consumable products such as eco-cloud architecture platform, cognitive computing technology and smart bed health monitoring and testing products has been well received. The sales and sales of RFID tags in the Business Intelligence Division continued to grow steadily. The company also actively explored RFID emerging industry application customers and accelerated the expansion of domestic apparel, jewelry, electricity, municipal and other application markets. During the reporting period, domestic key apparel customers have made breakthroughs. In the third quarter, EAS business reversed the short-term fluctuations in the first half of the year, and made good progress in brand promotion and technology improvement, and the economic indicators improved significantly.
There is still some uncertainty in the short-term private placement. The company will not initiate a non-public offering if the issue price is always lower than 70% of the average stock price of the 20 trading days prior to the issuance period. At present, there are still 3-4 months left. We believe that this clause will have a certain suppression effect on the short-term share price of the company, and it will also cause certain uncertainty in the timing of the follow-up business.
Financial forecasting and investment advice
We predict that the company's EPS for 2016-2018 will be 0.54, 0.71, and 0.90, respectively. Among them, Medical Hui Technology contributed EPS of 0.27, 0.38 and 0.49 in 2016-2018 respectively. According to the segment valuation method, the smart medical business in 2016 was given 81 times PE, the traditional business was 71 times PE, and the target price was 41.08.
risk warning
The progress of smart medical and RFID business is not up to expectations, and artificial intelligence productization is not up to expectations.
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Xi'an Gawen Biotechnology Co., Ltd , https://www.amulyn-bio.com