Midland Health (002044): High-quality track logic remains consistent and optimistic about long-term value

Midland Health (002044): High-quality track logic remains consistent and optimistic about long-term value
Investment Highlights Event: The company announced the performance forecast for the first half of 2019 and expects to achieve revenue of 36.4 ‰, an annual increase of 4.3%; net profit attributable to mother about 1588?63.52 million yuan (median 39.7 million yuan), 60% of the excess?90% (median 75%), slightly lower than expected. Revenue is picking up, waiting for Q3 performance inflection point.The company’s revenue has picked up in the first half of 2019.In addition to the lower base of the company in the same period last year, the main reason is that in order to continue to increase the quality of medical examinations and strengthen internal control, the company actively restricts passenger flow and uses medical quality control standards such as face recognition and blood tracking, resulting in short-termManagement costs increased.In addition, in order to vigorously develop the C-end business, improve the profit structure, and increase a large number of maintenance sales staff, the total reported sales expenses also increased accordingly.In addition, the company successfully issued 200 million US dollars of bonds, dating strategic investors in state-owned enterprises to further expand high-quality resources, and the increase in financial costs also brought some pressure on performance.We believe that the company has accumulated a lot of money. Through the improvement of quality control, the expansion of the C-end business and the disappearance of potential impact, the performance will usher in an inflection point in Q3. Learn the Huawei model and develop C-end business in depth.During the investor exchange activities in developing countries, the company made it clear that they would learn from Huawei, Apple and other companies to develop high-margin C-end business, repositioning from the past “off-season supplement” to “full breakthrough” business, with a goal of five years.Increase the inspection ratio from the current 25% to 50%.The company will enter the C-end market through Meinian Good Doctor and Meinen X + 1 packages. Among them, Meinen X + 1 is a complete, comprehensive and thorough set in accordance with the recommendations of the medical international gold standard and classification of top disease experts.In the medical examination plan, the corresponding medical examination equipment has reached the international standard, and the medical examination data is an information management mode. The integrated system fully brings out the company’s self-breakthrough in the personal examination field.To this end, the company has established an overhaul business unit dedicated to promoting customer-centric, service-oriented, and accurate inspections.In addition, the company will continue to improve service quality, medical quality, and strive to explore innovative business strategies and health management concepts. The goal is to benchmark Taiwan’s health inspection company within three years, and is committed to surpassing the first-class level of the global medical examination industry in Japan. Cultivate a high-quality customer base by improving hard competition conditions and deeply binding customer needs.The company highlights the product differentiation and innovation, and continuously introduces high-end imported equipment including coronary MRI, cardiac CT, and breast adenosine to improve rigid competition conditions, and gradually develops personalized medical examination packages to deeply bind public demand.In addition, 上海夜网论坛 the company’s compliance system and standards have been comprehensively improved, and the world’s largest AI medical imaging application platform has been introduced to ensure both quality and quantity.In addition, the company combines the advanced medical examination management of Japan and Taiwan, and introduces experts from top three hospitals to cultivate loyal and high-quality customer groups for future high-end individual examinations. Profit forecast and rating.We expect the company’s revenue to grow at a compound pace of about 27 in 2019-2021.3%, net profit attributable to mother is 26.9%.The three-year EPS are 0.32 yuan, 0.41 yuan, 0.54 yuan, corresponding to PE is 31 times, 24 times, 18 times, maintaining the “buy” rating risk warning: the risk of store expansion and profitability is less than expected, the performance of M & A companies is less than expected, increased 厦门夜网 sales and management costs, and internal controlrisk.