From the small agency to the independent research and development of the industry giant, Myriad Medical in the end did what? Shell investment research (ID: Beiketouyan) found that the Myriad once due to research and development of high-end medical equipment is very expensive, although more money, but not enough to burn, and the capital chain emergency, Myriad play finished. However, the final turnaround, in 1997, the introduction of venture capital Huadeng International began to deal with capital. Next, the success of self-developed products, the main cost-effective strategy for the Myriad opened up sales, in 2006 successfully landed on the New York Stock Exchange, becoming China's first overseas listed medical equipment companies .
Seeing this, we do not think that the success of another hundred billion giant, Hengrui Pharmaceuticals , also adhere to the independent research and development, but one is to do medical equipment, one is to do innovative drugs. So, what exactly does Myriad Medical rely on to get bigger and bigger?
A, Domestic medical equipment leader, three business areas continue to grow steadily
Shenzhen Miles Biomedical Electronics Corporation was founded in 1991, Provide medical equipment products for the global market, it is a deserved domestic medical equipment leader,
The world's leading medical equipment, is the world's leading medical equipment. strong> It is the world's leading medical equipment and solutions provider. Currently accounts for about 8% of the domestic market share, the world's third, Asia's third, the first domestic market share of 65% of the monitor, color ultrasound ranked third in the domestic rankings, hemocytometer and biochemical diagnostic products ranked in the top five, products covering nearly 110,000 medical institutions in China and more than 99% of the three hospitals.
The company focuses on its main business, and has achieved promising results in the three major business areas of life information and support, in-vitro diagnostics, and medical imaging, maintaining a healthy and good growth trend. Among them, in 2019, the life information and support business realized operating revenue of 6.341 billion yuan, a year-on-year increase of 21.38%; the in vitro diagnostics business realized operating revenue of 5.814 billion yuan, a year-on-year increase of 25.69%; and the medical imaging business realized operating revenue of 4.039 billion yuan, a year-on-year increase of 12.30%. These three businesses accounted for 38.3%, 35.1% and 24.4% of revenue, and 38.5%, 33.7% and 25.6% of profit.
Second, focus on research and development, high building moat
In the opinion of shell investment research (ID: Beiketouyan), really bring the moat, undoubtedly, is the technology, the product, and the more bottom is the research and development. In the last three years, the number of Myriad Medical R&D personnel has grown from 1,764 to 2,508 in 2019. At the same time, R&D expenditures have continued to increase, and the proportion of R&D investment has always remained at a higher level of about 10% in the domestic industry while revenues have continued to grow. Among them, the company's R&D expenditures totaled 1.466 billion yuan in 2019, a year-on-year increase of 15.7%. In the past three years, the average ratio of Myriad Medical's R&D investment is nearly 10%.
The moat effect brought about by patents and the established product barriers ultimately lead to a positive chain reaction . By the end of 2019, the company*** had applied for 4,873 patents and had authorized 2,130 patents, leading the medical device industry in China. R&D has led to improved profitability and market position, the company's gross profit margin has been consistently above 60% in the last 5 years, and net profit margin has grown from 11.7% in 2015 to 28.3% in 2019.
Third, purebred high-quality growth "cow", sustainable development
Profitability has brought about a sustained positive cash flow, the net cash flow from operating activities of Myriad Healthcare in 2019 was 4.72 billion yuan, an increase of 17.03% year-on-year, and in recent years the company Net cash flow from operating activities has been higher than net profit. The abundant cash flow further nourishes product production and research and development, which ultimately forms a benign operation and constantly pushes Myriad Medical forward. 2019, the company realized operating income of 16.556 billion yuan, a year-on-year increase of 20.38%; and realized net profit of 4.681 billion yuan from attributable net income, a year-on-year increase of 25.85%. under the epidemic, Myriad Medical against the trend to achieve revenue and net profit "double advance".
In addition, the company's cash inflow from operating activities is greater than the sum of cash outflow from investing and cash outflow from financing, and "sustainable". In the opinion of Beiketouyan (ID:Beiketouyan), the company relies on the money it earns to keep expanding, and at the same time, it can also reduce its debt and dividends, which is a typical cow-type enterprise. Not only eat down is grass, milked out is milk, and "cow" continues to grow, milk production capacity is expected to further enhance the Myriad Medical is the absolute purebred high-quality growth cow.
Four, summarize
Myriad medical why can break out a path? That's because Myriad insisted on going its own way. "You play your price war, I do my R & D production, and finally see who is the winner." Myriad's rapid development, inseparable from the "rural surrounded by cities" import substitution strategy and mergers and acquisitions integration of the two core factors, which also promote the Myriad medical from the low-end to enter the high-end products, to achieve the double growth in sales and profits. Thick accumulation and thin hair, it can be said that the reason why the Myriad Medical can become the industry leader, more thanks to the previous accumulation, globalization layout, localization of operations, R & D technology results. (ty001)