Author | Yao Yue
Editor | Miao Lingyun
The same as the domestic protective gloves leader, 2020 Inco Medical (300677.SZ) stock price rose 14 times, the blue sail medical (002382.SZ) but only rose 2 times, the current market value of the difference of more than 15 billion yuan.
The two compared to the market on the blue sail medical whether underestimated, or still is not the "glove king" of the debate has not ceased, in this regard, the blue sail medical said the "glove king" is the previous years The next ten years, "will move towards a higher, more challenging goal", not this ambition.
"The company has recently received some transfer orders", "the company's order quantity has increased" ...... interactive easy platform, a number of domestic protection Gloves head enterprises continue to reveal orders favorable.
After the new crown epidemic, the demand for disposable medical gloves skyrocketed, especially the traditional latex class gloves production of big countries in Malaysia is y trapped in the plight of the epidemic, resulting in the world's largest rubber glove business factory shutdown, China's protective glove production capacity continues to get a lot of release.
As a global PVC glove king last year, Lanshan Medical realized revenue of 5.188 billion yuan in the first half of this year, an increase of 127.11%; mother net profit of 3.442 billion yuan, an increase of 453.9%.
In the industry boom period was greatly exceeded, Lansfan medical said "ambition is not in the glove king".
financial reports show that in the first half of this year, Lansfan medical protective gloves revenue rose to 9%, the layout of the second curve - cardiovascular and cerebrovascular high-value consumables, medical devices contribute to revenue, gross margins fell by 29% year-on-year, respectively, 26%.
Transition three years, the proportion of the old line rose to 9%
Lansfan Medical was founded in 2002, belonging to the Blue Sail Group, formerly known as Zibo Blue Sail Plastic Products Company Limited, initially specializing in the research and development of disposable PVC gloves, production and sales.
In 2012, the scale of PVC gloves of Lufan Medical reached 12 billion, ranked first in the world, and was also called "glove king".
But as the industry leader of the blue sail medical, in 2017 before the basic industry ceiling. 2012-2017 revenue were 1.233 billion yuan, 1.335 billion yuan, 1.535 billion yuan, 1.509 billion yuan, 1.289 billion yuan, 1.576 billion yuan, of which in 2016 there was even a decline. Net profit also hovered around $100 million, up to no more than $200 million.
Lanshan Medical had to layout a new track to develop the second curve.
Since 2013, Lanfan Medical has acquired a number of companies such as Dongze Medical, Shanghai Dialysis, Yanghe Biological, etc., and its product line has expanded to include health protection combinations such as home care kits, portable care kits, and public **** care kits.
2018 has become a year of leapfrog development for Lufan Medical. Lansfan Medical cut into the field of cardiovascular and cerebrovascular high-value consumable medical devices through the acquisition of Parsons Brinckerhoff International, the world's fourth-ranked cardiac stent manufacturer.
Lanfan Medical has defined the strategy of "A+X", aiming to become a leading multinational medical device company with a complete layout of low- and high-value consumables. Lanfan Medical has divided its business segments into Protection Division, Cardiovascular Division, and Nursing Division.
In 2018 and 2019, the revenue share of the cardiovascular and cerebrovascular division of Lanshan Medical has been approaching the protection division, and the share of the two in 2018 was 60.27% and 38.17% respectively; and the share of the two in 2019 was 48.28% and 49.99% respectively.
But in 2020, affected by the outbreak of the epidemic and cardiac stent collection, Lanshan medical protection division and cardiovascular division's revenue share reversed sharply, respectively 69.13%, 22.33%. in the first half of 2021, the gap between the two revenue share intensified and widened, respectively, 92.15%, 7.02%.
In the first half of this year, affected by the collection and procurement, Lanfan medical cardiovascular products gross margin of absolute advantage also began to lag behind the health protection products. 2018, 2019, 2020, Lanfan medical health protection products and cardiovascular products gross margin ratio were 23.91%: 67.56%; 15.30%: 77.76%; 48.55%: 77.91%. In the first half of this year, the gross margin ratio of the two is 62.31%: 52.19%.
To cope with the global demand growth and the release of domestic production capacity, Lanshan Medical is also stepping up the expansion of protective gloves production capacity.
The financial report shows that in the first half of this year, Lansfan medical "200 million pairs / year surgical gloves project" the first phase of 60 million pairs / year surgical gloves project, "the first phase of the annual production capacity of 7.5 billion health protection (nitrile gloves) project" completed and put into operation, and the first phase of the annual production capacity of 7.5 billion health protection (nitrile gloves) project. Vietnam 800 million PVC gloves project has been completed.
In July 2021, part of the production line of Phase I (10 billion pcs/year) of the "20 billion pcs/year high-end health protection nitrile gloves project" was completed and put into production, and Phase II (10 billion pcs/year) of the "20 billion pcs/year high-end health protection nitrile gloves project" is being promoted. The second phase of "20 billion pieces/year high-end health protection nitrile gloves project" (10 billion pieces/year) is in progress.
Lafan Medical said that in 2021, it is expected to add at least 17.5 billion nitrile gloves and 200 million latex gloves to its new production capacity.
"Aspire to be more than a glove king"
Until 2020, no matter from the perspective of revenue, or profit, Lansfan Medical has been steadily pressing Yingke Medical.In 2019, Lansfan Medical had revenue of 3.475 billion yuan, net profit of 493 million yuan ; Yingke Medical has a revenue of 2.083 billion yuan and a net profit of 178 million yuan.
But from the outbreak of the epidemic in 2020, Inventec Medical realized the counter-attack on Lanfan Medical in one year.2020, Lanfan Medical revenue of 2.284 billion yuan, net profit of 620 million yuan; Inventec Medical revenue of 13.836 billion yuan, net profit of 7.007 billion yuan; in the first half of this year, Lanfan Medical revenue of 5.188 billion yuan, net profit of 3.442 billion yuan; Inventec Medical Revenue of 10.674 billion yuan, net profit of 5.879 billion yuan.
See this situation, there are Lansfan medical investors also in the interactive platform to warmly remind, to be vigilant next door to the Yingke, beware of Yingke price war. But Lansfan Medical replied, the company is not to compete with anyone, according to their own rhythm and direction, and ultimately realize the globalization of medical equipment platform type company. In response to another investor's question, Lanfan Medical said that the company's positioning and goal is not the glove king, nor the pursuit of the first glove production capacity.
The "own direction" referred to by Lansfan Medical is the "A+X" strategy. Blue sail medical said low-value, medium-value and high-value consumables products combined, can form a complementary model, risk hedging. Through the low value consumables "A" industry's linear growth to make up for the high value consumables "X" industry's product research and development, the window period for obtaining license and the impact of the policy, while "X" industry can have more space for innovation, and can carry a large number of products. The "X" industry can have more space for innovation and can carry higher-level talents, thus driving the company to change from scale growth to innovative growth.
In order to add that "X", at least from the point of view of capital investment and the qualification of the target, Lanshan Medical has invested a lot of energy.
In 2018, the completion of the largest medical device M&A case ever in the A-share market - the acquisition of 93.37% of the shares of Parsons Brinckerhoff International Group, and Lansfan Medical's large expenditure of 5.895 billion yuan; in 2019, the acquisition of the world's first approved "valve-in-valve" indication of the Swiss transcatheter valve. In 2019, the acquisition of New Valve Technology ("NVT"), the world's first approved "valve-in-valve" indication, a Swiss transcatheter interventional heart valve R&D and production enterprise, cost 1.39 billion yuan; in 2020, the acquisition of Wuhan Bikel, Asia's largest manufacturer of vehicle-mounted first-aid kits 100% stake and a 6.63% minority stake in CBCH II, totaling **** spent about 597 million yuan.
Lanfan Medical has spent close to 8 billion yuan on acquisitions in the last three years, accounting for more than 50% of the combined revenue (2.653 billion yuan, 3.476 billion yuan, and 7.879 billion yuan) in the three years 2018-2020.
After buying a car, you still have to fill it up with gas to drive it far. Some people in the medical device industry said that for the head of the enterprise is, the strongest is always strong, the middle players are no room for survival. Want to sit in the head position, continuous investment in research and development, to maintain product innovation is a major necessary factor.
Although the amount of R&D investment in Lafan Medical grew from 132 million yuan in the first half of 2020 to 228 million yuan in the first half of this year, the proportion of R&D investment in the first half of this year's revenue fell from 5.7% to 4.3%, a decline of 1 percentage point.
In the medical device industry, some companies' R&D investment as a percentage of revenue has been more than 20%, or even higher.2021 In the first half of the year, Xinlite (002294.SZ) R&D investment in revenue accounted for 24.05%; Wicresoft Medical (0853.HK) R&D investment in revenue accounted for 30.4%.
The question of profit
In the half-yearly report of Lanshan Medical's high growth, there is also the mystery of the second-quarter profit.
Through the first half of this year's data minus the first quarter of this year's data, can be derived from the second quarter revenue of 2.021 billion yuan, net profit of 1.724 billion yuan, non-deductible net profit of 618 million yuan, operating costs of 1.013 billion yuan.
It can be found that Lanshan Medical's revenue in the second quarter of this year fell by 36.19% from the previous year, although the net profit of the mother of the net profit was basically flat, but the net profit of non-deductible net profit fell by 63.3% from the previous year.
The data show that the same as the concept of protective gloves stocks of Inco Medical, Zhonghong Medical (300981.SZ) in the second quarter of this year, revenue fell 41.51%, 39.55%, respectively, the decline is greater than the blue sail medical.
Yingke Medical and Zhonghong Medical's deductible net profit in the second quarter of this year fell by about 42% and 51% respectively. In contrast, Lanshan Medical's deductible net profit decline is a bit larger than the first two companies.
In response to the deduction of non-net profit compared to the first quarter shrinkage, Blue Sail Medical said it is the 1.095 billion yuan performance compensation and compensation for shares into the first half of 2021 accounting statements.
It is worth noting that the cost of Inco Medical and Zhonghong Medical both declined in the second quarter of this year, down 42.05% and 23.04%, respectively, while Lansfan Medical rose by 2.63%.
In addition to this, a large number of acquisitions have brought a lot of goodwill to Lanshan Medical, and as of the first half of 2021, the company still has 5.307 billion yuan of goodwill. This, in 2020, due to the subsidiary CBCHII part of the goodwill impairment provision increased to about 1.76 billion yuan, Blue Sail Medical net profit directly from the expected 3 billion yuan - 3.4 billion yuan, reduced to 1.758 billion yuan.
Blue sail medical said, by the epidemic, CBCHII 2020 annual performance has declined, coupled with the company won the bidding for the health insurance cardiac stent collection and procurement since January 1, 2021, is expected to have a certain negative impact on the profitability of the future years.