Yuyue Medical (002223): Channel destocking is nearing completion and products maintain rapid growth

Yuyue Medical (002223): Channel destocking is nearing completion and products maintain rapid growth
Core point of view: the destocking of the channel is nearing its end, and the main products maintain rapid growth. The company releases three quarterly reports: the company’s revenue in the third quarter alone was 10.5.5 billion (+10.18%), net profit attributable to mother 1.8 billion (+13.55%), net profit after deduction 17.4 billion (+15.40%), the growth rate of revenue and net profit in the third and third quarters were lower than the same period of the previous year, mainly related to the destocking of offline channels. It is expected that the destocking of channels is nearing completion.We expect that the main products of home appliances, such as blood glucose test strips, electronic sphygmomanometers, ventilators and electric wheelchairs, will maintain a rapid growth trend. Online sales will change and offline channels will complete destocking. The performance of the home medical device segment is expected to gradually recover.Medical clinical business Suzhou Medical Factory and Zhongyou have solid growth performance. The financial indicators are extra robust and the expenses are well controlled.75%, an increase of 1 over the same period last year.18pct, mainly because the online Tmall channel is self-employed, the cost is increased (the gross profit margin is increased at the same time), and the management cost is 6.04%, a decrease of 2 compared with the same period last year.40pct, R & D expenses4.97%, an increase of 2 over the same period last year.35pct, financial expenses cost -1.23%, the company’s financial indicators are overall stable, and the cost control during the period is better. The forecast for 19-21 is 0.85 yuan / share, 1.02 yuan / share, 1.22 yuan / share We estimate that the company’s net profit attributable to the mother in 19-21 will be 8 respectively.5.3 billion, 10.1.9 billion and 12.22 trillion, corresponding to the current PE estimates are 25X / 21X / 18X.With reference to the estimated levels of comparable companies Dabo Medical, Wanfu Biological and Sanuo Biological, and taking into account the pressure of no control fees in the company’s field, the growth rate of performance is between Sanuo Biological, Wanfu Biological and Dabo Medical.Give the 天津夜网 company 30 times PE in 2019 with multiple reasonableness, corresponding to a reasonable value of 25.50 yuan / share, maintain “Buy” rating. Risks indicate the risk of the decline in the growth rate of online channels; the integration of subsidiaries is not up to the expected risk; the risk of excessive expenses.