Nanwei Medical (688029): Three major technology platforms for domestic minimally invasive diagnostic and treatment equipment leaders are expected to grow rapidly

Nanwei Medical (688029): Three major technology platforms for domestic minimally invasive diagnostic and treatment equipment leaders are expected to grow rapidly

Based on R & D and innovation, it has become the domestic leader in endoscopic diagnosis and treatment supplies.

Founded in 2000, Nanwei Medical focuses on the research and development, production and sales of minimally invasive diagnostic and therapeutic devices.

The company has built three major technology platforms including endoscopic diagnosis and treatment, tumor ablation, and EOCT (optical coherence tomography system).

The company achieved operating income in the first three quarters of 20199.

600 million, an annual increase of 41.

2%; achieve net profit attributable to mother 2.

30,000 yuan, an annual increase of 38.

9%; net profit deducted from non-attributed mothers2.

20,000 yuan, an increase of 49% in ten years.

  Endoscopic diagnosis and treatment consumables: The core endoscopic business grew rapidly.

The global market size of endoscopic diagnostic equipment is more than 5 billion U.S. dollars, with an annual growth rate of about 5%. The penetration rate of endoscopic examination in China is currently low, but the growth rate is far beyond the international level.

  The company has six major product series including hemostasis and closure, EMR / ESD, ERCP, EUS / EBUS, etc. Among them, soft tissue clips are cost-effective, CAGR (2015-2018) = 167%, and the revenue ratio is 3

75% increased to 41.

82% are the company’s star products.

  Focus on research and development, innovation-driven.

The company continues to expand investment in research and development, continuous technological innovation, and develops new products.

The research and development achievements won the second prize of the National Science and Technology Progress Award, and the second prize of 无锡夜网 the National Technology Invention Award.

The company cooperated with Johns Hopkins University in the United States to obtain the core technology of EOCT products. It has been approved by the US FDA clinical trials and entered the domestic medical device green approval channel.

EOCT, as the most cutting-edge product for early cancer screening, has a breakthrough market potential.

  The layout of high-end products for minimally invasive diagnosis and treatment emerged.

At the same time as the rapid development of internal mirror diagnosis and treatment consumables, the company has cut into the field of tumor microwave ablation treatment and is marching toward high-end minimally invasive diagnosis and treatment products.

In 2018, the microwave microwave ablation product revenue was 7089 million, with a domestic market share of 23% in this field, ranking first in the echelon.

  Two-wheel drive in domestic and international markets.

In the domestic market, the company’s soft tissue clips, ESD electric knives and other products gradually realized import substitution.

The company’s products cover 2900 inpatient hospitals across the country, and the coverage rate of top three hospitals has reached more than 55%.

  In the international market, the company’s products are exported to the United States, Japan and other countries and regions.

National income reached 5 in 2018.

700 million, accounting for 55.

30%, overseas income reached 4.

100,000 yuan, accounting for 44.

70%.

  Investment suggestion: For the first time, assign a “Neutral” rating.

We expect the company’s revenue for 2019-2021 to be 12.

88, 17.

8, 24.

3.9 billion, a 39-year growth of 39.

7%, 38.

2%, 37%, net profit attributable to mother is 2.67, 3.

61, 4.

8.6 billion, an increase of 38 previously.

8%, 35%, 34.

5%.

The EPS is 2.

01, 2.

71, 3.

64 yuan.

Considering that the company is a leader in the diagnosis and treatment of digestive tracts, the two-wheel drive at home and abroad, the product is cost-effective, and the technology in progress is advanced.

We think the company’s reasonable estimate range for 2019 is 16-18 times PS, and the reasonable price range is 153-173 yuan.