Is it a good thing to convert Yingke Medical from 10 to 5 shares in 2021?

In 2021, it is a good thing for Yingke Medical to convert from 10 to 5 shares. According to statistics from Securities Data Bao, the company released its first-half report today, with operating income of 10.674 billion yuan, an increase of 139.88% over the same period last year, net profit of 5.879 billion yuan, an increase of 205.98% over the same period last year, and basic profit per share of 16.0 +1 yuan, the weighted average return on net assets is 48.79%.

1. Introduction to Yingke Medical

As of 2020, Yingke Medical’s reputation in the A-share market is still limited. While the sudden epidemic has affected people's daily lives, the A-share market has also undergone tremendous changes. This year, in addition to the sharp increase in demand for masks, there is also a shortage of medical gloves. Glove supplier Inko Medical stands on the cusp of taking flight in the sky. The birth of Yingke Medical actually took several years. Liu Fangyi was engaged in the disposable glove trading business while studying in the United States in the 1990s. Later, he returned to China and registered in Shanghai Yingke Medical Supplies Co., Ltd. in 2003, and officially established the Yingke brand. In 2009, the glove production base in Zibo, Shandong was built, and Yingke Medical Technology Co., Ltd. was also established in Shandong. In July 2007, it was successfully listed on the Shenzhen Stock Exchange.

2. Prospect Analysis of Yingke Medical

1. When will the epidemic end? Let’s take a look at the exchange between Zhong Nanshan and Fauci yesterday. All in all, when the epidemic will end is not determined by any country, but by the overall epidemic prevention and control results of countries around the world.

2. Performance of Yingke Medical. The median expected profit in 2020 is 7.05 billion, or 23 yuan per share. According to this, the profit in the first quarter of 2021 was 3.078 billion [7.05 billion-4.373 billion plus 15%], and the profit per share was 11.37 yuan [23-13.11 plus 15%] . It is expected to be higher than this and lower than this.

Let's take a look back at the public information released by the company over the year. On March 3 this year, the company announced its strategic plan. Yingke Medical Technology Co., Ltd. announced that its wholly-owned subsidiary will invest in the expansion of high-end medical gloves with an annual output of 9.88 billion pieces (9.88 million boxes) and the construction of patient medical consumables projects. In order to expand epidemic prevention varieties, the company has added production lines. Simply put, this production line can provide a production capacity of 10 billion gloves, 300 million masks, and 1 million sets of protective clothing per year.