Nanwei Medical (688029): Deeply cultivating endoscopic diagnosis and treatment equipment to advance tumor ablation and EOCT multi-platform

Nanwei Medical (688029): Deeply cultivating endoscopic diagnosis and treatment equipment to advance tumor ablation and EOCT multi-platform

Leader in the field of endoscopic diagnosis and treatment, and three major technology platforms with concentric and diverse layout. Since its establishment, the company has been deeply involved in the field of endoscopic diagnosis and treatment equipment, and has gradually formed six product lines, a variety of endoscopic diagnosis and treatment product lines; through extension mergers and acquisitions + internalInnovate, attack the field of tumor ablation and EOCT technology platform, and form three major technology platforms of endoscopic diagnosis and treatment, tumor ablation and EOCT around the minimally invasive field.

The company is in a period of rapid growth. From 2016 to 2018, the company’s main product sales increased rapidly, with total operating income from 20164.

100 million increase to September 2018.

About 200 million, the compound annual growth rate is close to 50%.

The scope of the country’s internal mirror diagnosis and treatment market is broad, supporting the company’s growth. The soil is fertile and the digestive system diseases are gradually increasing. Gastric cancer, esophageal cancer, colorectal cancer and other digestive system cancers rank among the leading rates of various types of cancer. The prevalence of gallstone disease, cholecystitis and pneumoniaIt is on the rise, pushing up the basic needs of endoscopic diagnosis and treatment as an effective means for early screening and diagnosis of digestive diseases; the progress rate of endoscopic diagnosis and treatment in our country has significantly exceeded the gradual expansion, and the scope of the endoscopic diagnosis and treatment market is broad, supporting the company’s fertile soil.

The company’s endoscopic diagnostic equipment product line contributed the company’s main subsidiary revenue, which accounted for 88.

6% is also the main source of short-term growth; from 2016 to 2018, the operating income of the endoscopic diagnostic and treatment device product line increased from 3.

2.1 billion to 8.

1.1 billion, with an average annual or compound growth rate of about 60%. The sales of the three major product lines of hemostasis and closure, biopsy and expansion account for about 84.

5%.

Tumor ablation and EOCT are expected to become the company’s new growth point. The company’s microwave ablation products are mainly used for liver cancer treatment. Cancer is a country with a high incidence of liver cancer. Liver cancer ranked fourth in the incidence of cancer in 2014, and ranked second in the death rate., Tumor ablation is a primary tumor that cannot be performed, especially liver parenchymal tumors, or patients who are not suitable for open surgery due to age / physical 北京养生会所 reasons.

The company’s tumor ablation products account for nearly 10% of the domestic thermal ablation market.

ECOT is an innovative product of the company’s strategic layout with cutting-edge technology standards, pioneering a brand-new “non-invasive optical biopsy” technology. At the end of 2016, it was approved by the US FDA.The green channel for the approval of innovative medical devices by the FDA is expected to become an important growth point for the company’s performance in the future.

Earnings forecasts and estimates temporarily do not take into account the sales revenue and profit contribution of the subsequent listing of EOCT products. We forecast that the company’s revenue scale will be 12 in 2019-2021.
.

16/15.

73/20.

11 trillion, respectively increased by 31.

9% / 29.

4% / 27.

8%; net profit attributable to mothers is 2.

75/3.

62/4.

7.2 billion, an increase of 43 in ten years.

0% / 31.

5% / 30.

4%; total issued share capital1.

3.3 billion shares are the reference share capital, and the company’s full diluted earnings (EPS) will be 2 in 2019-2021.

07/2.

72/3.

55 yuan.

The company belongs to the medical device fine molecule industry, and the current medical device (SW) industry as a whole is PE (TTM) 42.

6 times (as of July 17), most of the company’s products are consumable-type devices, we choose A-share comparable companies Dabo Medical, Jianfan Bio and Kellett for reference.

Based on the industry’s overall and comparable company estimates, considering that the company’s net profit attributable to mothers will increase at a compound annual growth rate of more than 30% in the next three years, a 40-time PE estimate for 2019 is given, with a target price of 82.

8 yuan.

Risks indicate that the competition in the industry is intensifying, and the development of new products such as EOCT is less than expected, and the risk of product price reductions.