Mei Nian Health (002044): Consolidation of foundation expansion and restart

Mei Nian Health (002044): Consolidation of foundation expansion and restart
2018 results are in line with expectations. Midea Health announced the 2018 and 2019 first quarter results: 2018 revenue of 84.5.8 billion (+35.7%); Net profit attributable to parent company 8.2.1 billion (+33.7%), corresponding to a profit of 0.26 yuan. Revenue growth in Q1 20194.4%, net profit was basically flat.2019Q1 was slightly lower than expected.The company intends to 3.4.7 billion yuan to acquire 19 medical examination centers, 1.2.8 billion holdings 11 health check-up centers affiliated to Anhui Nuoyi. Development Trend The 2018 performance is in line with expectations, and the 2019Q1 revenue is slightly lower than expected.Affected by the Guangzhou incident, the company’s operations in 2018 had a 杭州桑拿网 certain impact, and net profit attributable to mothers continued to increase33.7%.Excluding the same control and consolidation effect of Maine, the company is expected to increase its net profit in 2019 by 27.91%.The peer “blood test” oolong incident in early December 2018 had a certain impact on the initial group test market, and the revenue in the first quarter of 2019 increased by 4%.4%, the net profit is basically flat, deducting non-net profit -2.7.1 billion (-174.28%).Changes in accounting standards led to the transfer of part of the equity of the proposed acquisition of equity participation centers into the fair value of non-current financial assets, which is the main source of non-recurring differences.Since the third quarter of 2018, the company has actively strengthened medical quality management and informatization construction, consolidating the foundation of internal control. Currently, the operation is continuing to resume, and it is expected that there will be a noticeable improvement in the second quarter of 2019. The third and fourth lines continued to expand, with significant scale advantages.In 2018, the company achieved full coverage of the Chinese mainland market, with a total of 633 medical examination centers in 301 core cities.Among them, there are 256 holdings, 292 shares and 85 under construction. In 2018, the proportion of third- and fourth-tier cities has increased to 49%.Announcement announcement proposed 3.4.7 billion yuan to acquire 19 “Meiannian” medical examination centers, 1.28% of the shares were acquired by Anhui Nuoyi’s 11 medical examination centers, and the company’s scale advantage will be further highlighted.Among the 19 acquisition plans, in addition to the strategic acquisition of Taiyuan Center Holdings becoming wholly-owned, the other 18 centers participated in the acquisition of asset prices and promised profit for 2019 was 8.43X, corresponding to the average committed profit in the next three years2.51X.Anhui Nuoyi’s main health examination brand “Ainuo Medical Examination” covers 11 medical examination centers in 10 prefecture-level cities in Anhui. The value of the assets of this acquisition corresponds to the 2018 performance of 1429X, the acquisition price is reasonable, the acquisition of 30 medical examination centers is expected to increase the company’s profit of about 60 million yuan in 2019. The capital project is initially closed, and everything is waiting to take off again.Since 2018, the company’s various financial matters have gradually entered the closing stage.On March 29, the US $ 200 million debt pricing was completed, and Guosheng and Haitong cooperated in a strategic agreement.2.4 billion shares (progress 4/5). The scale of the non-public offering has been adjusted. It is currently under review by the CSRC.6.61 million shares were repurchased at an average price of 14.75 yuan (including transaction fee), it is expected that the follow-up will be decided to advance the process depending on the situation.After 1 year of refurbishment, the company’s overall internal control and net funds have been improved and consolidated, and chain expansion and platform construction have been rebuilt. We look forward to the company taking off again. Profit forecast Considering that the off-season of the Q1 medical examination industry has limited impact on expected results, we temporarily maintain the 2019/2020 profit forecast unchanged, which is 0.37 yuan, 0.52 yuan, currently matching the corresponding P / E is 46X / 33X. Estimates and recommendations maintain recommended levels.Maintain target price of 20.5 yuan, corresponding to 2019/2020 P / E is 46X / 32X, with 22% of 苏州夜网论坛 upside. Management risk due to the increase in the number of health check-up centers.