Tongce Medical (600763): Deduct non-net profit to achieve 54% high growth, save internal and external expansion quickly and orderly

Tongce Medical (600763): Deduct non-net profit to achieve 54% high growth, save internal and external expansion quickly and orderly
In 2018, revenue increased by 31%, and non-net profit after deduction increased by 54%.The company achieved operating income of 15 in 2018.460,000 yuan, an increase of 31.05%, net profit attributable to mother 3.320,000 yuan, an increase of 53.34%, deducting non-net profit 3.270,000 yuan, an increase of 53.56%, EPS1.04 yuan, an increase of 52.94%.Single-quarter revenue in the fourth quarter3.8.3 billion (+23.6%), net profit attributable to mother 56.7 million yuan (+63.9%), deducting non-net profit of 56.14 million yuan (+67.5%), excellent single quarter performance, long-term performance maintained high growth rate, in line with expectations. The “Regional General Hospital + Branch Schools”四川耍耍网 developed in a coordinated manner, with both volume and price rising to drive high growth.The company adheres to the “regional general hospital + branch hospital” group management model of hospitals, with the regional general hospital Hangkou Hospital as the center in Zhejiang Province, and constantly develops branch hospitals.In 2018, Zhejiang Regional Group achieved revenue13.320,000 yuan (+27.5%) and 1.84 million outpatient visits (+16.8%); Hangkou General Hospital income 5.6.6 billion (+17.9%), regional branch income 7.6.6 billion (35.8%).According to estimates, the highest comprehensive customer price in 18 years was about 800 yuan / person, an average increase of about 10%; meanwhile, the revenue of the implant and orthodontics departments with higher gross profit was 2 respectively.320,000 yuan (+39.7%), 3.1.1 billion (+36.4%), revenue accounted for 15% and 20% respectively. The continuous increase in the proportion of high-margin services has driven the overall dental business to achieve both volume and price. The “Dandelion Plan” consolidates absolute units in the province, and dental funds and institutions cooperate to increase their influence outside the province.In December 2018, the company and Hangzhou Stomatological Hospital Group formally launched the “Dandelion Plan”, the first batch of 10 new branches were signed, and it is expected that 10 dandelion projects will be constructed in 2019 (the estimated investment is 0.800 million), the company expects to merge more than half of the market share in Zhejiang Province through the dandelion plan to build an absolute competitive advantage within the region.Outside Zhejiang Province, the company invested in the Cunji Dental Hospital in Beijing, Wuhan, Chongqing, Chengdu, Xi’an and other places through the dental fund.Chongqing Cunji Stomatological Hospital also opened for trial in February 2019.In addition, by cooperating with universities within and outside the province such as the University of Chinese Academy of Sciences and Zhejiang University, the company has realized the integration of medical education, research and research while further enriching its own talent pool. Gross profit margin increased by 1.93 averages, during which the expense ratio decreased by one.65 singles, designed to increase operating cash flow by 35.5%.The company’s gross profit margin in 2018 was 43.29%, 1 increase every year.93 units; period expense rate 16.05%, down by 1 every year.65 single, the company’s promotion of budget and expense management has achieved initial results; of which the sales expense rate is 0.71%, a decrease of 0.28 single, mainly due to the company’s implementation of precision marketing strategies to effectively control traditional marketing expenses; management expense ratio13.77% (including R & D expenses), which decreases by 1 every year.The 96 mergers reflect the expansion of the conversion company’s scale, and the dilutive effect of fixed costs began to manifest;57%, rising by 0 every year.59 uniforms.Preliminary net operating cash flow1.46 yuan, up 35 per year.5%, the company’s overall business has shown a continuous improvement. Endogenous + extended two-wheel drive, oral, assisted reproduction and ophthalmology multi-business platform development, maintaining the level of increase.The company took root in the field of oral medical services and became an industry leader.The branch offices of the company operate properly, have a good reputation, develop rapidly, and achieve simultaneous expansion inside and outside the province.Merging the company’s annual report, and considering that the company ‘s Hangkou Hospital Group Branch has successively promoted operations and the operating capacity has been significantly improved, entering a period of rapid development, we raised the EPS forecast for 19-20 years to 1.38 yuan, 1.83 yuan (originally 1.25 yuan, 1.64 yuan), the first announcement of the 2021 forecast2.41 yuan, an increase of 33%, 33%, and 32%, corresponding to 52 times, 39 times, and 30 times the corresponding PE, maintaining the overweight 都市夜网rating.