The company announced the third quarter report for 2016. The operating income in the first three quarters was 41.37 million yuan, up 63.16% year-on-year. The net profit attributable to shareholders of listed companies was 51.12 million yuan, up 96.93% year-on-year.

Company's performance exceeded expectations

According to the division of the company's business segment, the company's monitoring equipment and hemodialysis business revenues achieved a significant increase in the first three quarters, of which the monitoring equipment sector achieved sales income of 164,426,500 yuan, an increase of 18.46% over the same period of the previous year, hemodialysis The sales income of the sector reached 253.751 million yuan, an increase of 111.91% over the same period of the previous year.

As the company's Hemodialysis business segment gradually brought the overall performance outbreak period, the company's revenue growth rate reached 63%, and the proportion of Hemodialysis business revenue continued to increase, reaching 62% in the first three quarters of this year. Third, the kidney disease medical industry layout is more clear, paving the way for long-term high-speed growth in performance

We saw that in 2016, Q1-Q3, the company made breakthroughs in many aspects, focusing on the stable development of health monitoring formulated at the beginning of the year, focusing on the expansion of nephrology medicine, and made comprehensive progress in research and development, mergers and acquisitions and capacity building.

1) Monitoring product development: completed the renewal of the pulse oximeter and fetal monitor and the first registration of the ultrasound Doppler fetal heart rate and obtained the certificate, and continued to develop other new products to consolidate the company's health monitoring field. Industry leadership.

2) Medical services, talent introduction + hospital entity: The company has set up a medical service team for kidney disease including many doctors and professionals. In the first three quarters, the merger and reorganization negotiations of many hospitals have been completed according to the annual business plan. The company has confidence. Complete the annual plan for mergers and acquisitions. It has been extended to the downstream medical services sector.

3) Internal production capacity construction: In the first three quarters, the company has completed the main construction project of the Nanchang base. The Tianjin base has completed all the approval procedures in the previous period and will soon enter the main building. Both bases are expected to be completed by the end of 2017 to ensure the company's demand for hemodialysis products due to the expansion of its business scale. With the integration of channels, capacity expansion will once again become a booster for performance.

Earnings forecasts and investment advice:

We expect the company's sales revenue in 2016-2018 to be 697 million yuan, 950 million yuan and 1.258 billion yuan, and the net profit attributable to the parent company is 71.63 million yuan, 110.74 million yuan and 150.62 million yuan, respectively. The corresponding diluted EPS is 0.49 yuan and 0.76 yuan respectively. And 1.03 yuan. We believe that the company's monitor products have rebounded significantly at the bottom of the 2015 performance. The upstream supply and sales of the hemodialysis industry and the channels of the midstream have been fully developed. The industrial layout of the downstream kidney disease medical services has started, and the company has benefited from the outbreak of the hemodialysis market. The most flexible. Therefore, we continue to recommend and maintain an “overweight” rating.

risk warning:

The development of nephropathy medical services was lower than expected; the expansion of hemodialysis consumables capacity was lower than expected; the overseas market of monitors was affected by factors such as policies and exchange rates.

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