Out of |The Daily Beast
By |Yang Liu
The global economy was paralyzed by the 2020 pandemic, and most of the industries were hit by different degrees of negative impacts, but some segments of the healthcare sector witnessed an epic outburst of performance, which benefited the most from the protective products such as masks and gloves, which also gave birth to superb bull stocks. The company's main goal is to provide the best quality products and services to its customers.
According to statistics, the company realized operating income of 8.945 billion yuan in the first three quarters of this year, an increase of 486.44% year-on-year, and realized net profit attributable to shareholders of listed companies of 4.373 billion yuan, a year-on-year surge of 3376.72%. Inventec Medical realized a total of 717 million yuan in profit in the seven years from 2013 to 2019, and this year, in just half a year, the company's profit scale reached nearly three times the sum of the past seven years. Meanwhile, the company's stock price ended 2019 at $10.63 per share, but realized a tenfold increase in 2020, peaking at $166.90 per share.
Behind the soaring share price is both the windfall and the company's own value.
Ten years of grinding the sword no one asked, a move to fame in the world know
Inco Medical was founded in 2009, since its inception so far has been ten years, the company successfully landed on the Growth Enterprise Market in 2017, and then opened up the road of expansion under the auspices of the capital. The actual controller, Liu Fangyi, once studied in the United States, began to do medical protection products trading business in foreign countries in the 1990s, and accumulated a large number of overseas customer channels, external ODM model to take the lead in developing overseas markets, and foreign customers are basically the top international wholesalers and retail giants.
Since its inception, the main business of Inventec Medical has covered four major segments, namely, medical protection, rehabilitation care, health care and physiotherapy, and examination consumables, and its main products include disposable gloves, wheelchairs, hot and cold compresses, electrode pads and other types of care products, among which disposable gloves are the company's main business, and the gloves produced by the company mainly include PVC gloves and nitrile gloves.
PVC gloves originated in the United States, in the 1990s, PVC gloves production technology into China. After years of development, the PVC glove technology of domestic enterprises has been very mature, at present, most of the global PVC glove production capacity is concentrated in China, and the main enterprises are Yingke Medical, Bluefan Medical, Shijiazhuang Hongrui, Zhonghong Prin, etc. The nitrile gloves are mainly produced in the 1990s, and the nitrile gloves are mainly produced in the 1990s. Nitrile gloves were introduced in the 1990s, which solved the defects of latex gloves allergy, and at the same time, it has the advantages of memory hand shape, not easy to fatigue, with puncture resistance, tear resistance, color easy to distinguish between the management and the upstream raw material price fluctuations, etc., it is the most vitality of the disposable protective gloves.
Yingke Medical is the earliest local enterprise to introduce advanced nitrile glove production line from Malaysia, and is also one of the few domestic manufacturers who are skilled in mastering the production line of double-handed molded nitrile gloves. The company's newly built nitrile production line has already reached the top level in the world, and it possesses self-developed production line and 87 patented technologies, and its product specifications have obtained many international certifications, and it is a rare enterprise that has a stable large-scale production of medical grade It is one of the few enterprises in China that produce medical grade nitrile and PVC gloves on a large scale and stably.
After the outbreak of Xinguang epidemic, Inventec Medical delivered a large number of medical gloves to various countries all over the world, and became a star company all of a sudden. In the recent interactive platform, Inventec Medical said that the supply and demand of disposable gloves is still seriously imbalanced, affected by the epidemic at home and abroad, a number of large customers have the intention of increasing the procurement of disposable gloves, the company's PVC gloves and nitrile gloves have been in a state of full production and full-sale status, and some of the customers' orders have been scheduled to the second quarter of 2021.
Prior to this, Inventec Medical mainly relies on the ODM model, but Inventec Medical is not a complete OEM, but also has its own direct sales and distribution channels, and the epidemic has boosted the influence of the company's own brand. About 40%-50% of the company's own brand gradually bypassed the overseas brands directly into the European and American hospital terminals, the brand influence continues to improve, the future operating model is likely to change from ODM to OBM gradually.
The east wind has come, the rise of the time
Malaysia is the largest production base of latex disposable gloves based on the advantages of the rubber country of origin. Top Glove, Heteka, Kesan Rubber, Speed Boomer, etc. are all large glove manufacturers, occupying nearly 30% of the global sales market share, which is the cost advantage is the important competitiveness of these enterprises, including the advantage of raw materials and labor cost advantage.
In order to reduce the cost, Inventec Medical has also spent a lot of effort, the company through the self-built power plant to achieve co-generation, it is expected that about 50% of the nitrile glove production capacity of the energy cost will be reduced by about 20%, and at the same time, the construction of upstream raw materials factory, expanding the ability to control the cost of nitrile rubber latex is expected to be reduced by about 10-15%.
In addition, the higher level of automation of INTECH MEDICAL also reduces the cost for the company. Generally speaking, the length of the main chain of a production line of nitrile gloves is close to 1.5 kilometers, and the control points are nearly 3,000, through which INTECH MEDICAL realizes the automation control of the production chain, which effectively reduces the production cost.
Overall, in the future, the nitrile production cost of INTECH MEDICAL will be reduced to about RMB 89.29/thousand (down 12.1%), which is significantly ahead of HETEGA's RMB 113-120/thousand. On the other hand, after the signing of RCEP agreement, if the import tariffs of nitrile latex and other raw materials are ushered in a decline, it will bring a certain positive effect on the company's raw material cost reduction.
Demand is the fundamental to promote the development of enterprises, Everbright Securities research report shows that the current domestic consumption of disposable medical gloves is much lower than the world average, the epidemic is expected to give rise to new demand. Due to the difference in the level of global economic development, the current main consumption of medical gloves for the United States, Europe and Japan and other developed countries and regions.
According to the Malaysian Rubber Export Promotion Council (MREPC) data, in 2017 the world's per capita use of disposable medical gloves is 29, the U.S. average level of 250, but China's per capita consumption of only 6, far lower than the world's developed countries and regions. This epidemic will largely increase the awareness of wearing gloves in China, and the huge Chinese market is a big advantage for Inventec Medical, especially with the promotion of the development strategy of internal recycling, Inventec Medical can be said to be the first to get the moon in the near water tower.
The last point, the glove production capacity can not be significantly increased in the short term, the reason is that the technical difficulty of glove production line construction and capital investment is very huge, and the production factors demand is high, so only have the technical and financial advantages of leading manufacturers can be a large-scale new disposable glove production line.
In addition, Southeast Asia's traditional glove giants are generally faced with the problem of aging production lines, while Inventec Medical, as a newcomer, its production equipment and environmental protection equipment are very advanced. At the same time, Yingke Medical embarked on the expansion of production last year, and in April 2019, Yingke Medical issued convertible bonds to raise funds of 470 million for "an annual production capacity of 11.08 billion high-end medical gloves", and the remaining capacity of the second phase of the project is 16.92 billion for the production of PVC gloves, and the new production capacity will be put to use exactly in this year, which is certainly This is undoubtedly an important strategic opportunity. According to the current capacity planning, Inventec Medical is expected to become the world's largest PVC glove company in 2021, and the world's largest nitrile glove manufacturer within three years.
Therefore, overall, Inventec Medical is expected to usher in a period of opportunity for development.