## Yuyue Medical (002223)： Home clinical common progress and overall performance increase steadily

Yuyue Medical (002223): Home clinical common progress and overall performance increase steadily

Yuyue Medical announced the 2019 semi-annual report on August 27, 2019, and the company realized revenue of 25.20,000 yuan, an increase of 12 in ten years.53%; realized net profit attributable to mother 5.33 ppm, an increase of 14 years.42%; net profit attributable to non-returning mothers5.11 ppm, an increase of 14 in ten years.42%. The medical clinical sector has grown steadily.Revenue from the medical clinical segment5.850,000 yuan, an increase of 19 in ten years.88%, gross margin is 50.23%, increase by 1 every year.49pct, of which Suzhou Medical Supplies Factory achieved revenue1.580,000 yuan, an increase of 30 in ten years.39%; Shangqi realized income 3.34 ppm, an 18-year increase.91%; Zhongyou achieved income 2.72 ppm, an increase of 17 in ten years.52% is expected to continue to increase in the civilian market. Growth in the household sector continued.The medical breathing and oxygen supply segment achieved revenue.29 ppm, a ten-year average of 6.55%, gross margin is 46.56%, increasing by 0 every year.25pct. The decrease was mainly due to the company’s accelerated clearance of the historical inventory of the channel, which affected the sales of oxygen generator products; the household medical sector realized revenue10.12 ppm, an increase of 24 in ten years.53%, gross margin is 39.02%, up 3 per year.32pct, of which the blood glucose meter and its test strips have increased by more than 40%, and electronic sphygmomanometers, wheelchairs, thermometers, AED and other products have exceeded 20%.From the perspective of channels, the growth rate of online platforms is expected to be close to 20%, and the growth of offline channels is expected to be stable. From a regional perspective, domestic sales achieved revenue21.09 million yuan, an increase of 11 in ten years.54%; revenue from export sales3.73 ppm, an increase of 17 in ten years.21%; the company’s financial indicators are stable, and the change in the expense ratio is related to the direct conversion of Tmall.The company’s net margin is 21.47%, a decrease of 0 per year.43 points.Among them, the gross profit margin was 41.67%, an increase of 1 per year.43 points; selling expenses 9.38%, an increase of 0 every year.70pct; After adding back the R & D expenses, the management expenses are 7.26%, an increase of 1 per year.05pct; Finance Expenses Expenses -0.18%, 0 per year.53 points. Earnings forecast: We expect the company’s net profit attributable to its mothers to be 20% in 2019-2021.5.8 billion, 10.1.4 billion, 12.12 trillion, a year of growth of 18%, 18%, 20%; the company’s EPS for 2019-2021 is 0.86 yuan, 1.0成都桑拿网1 yuan, 1.21 yuan, corresponding to 2019-2021 PE is 27X, 23X and 19X.Maintain the “Highly Recommended” rating. Risk warning: The company’s product sales are lower than expected; M & A integration is lower than expected; the effect of offline reform is lower than expected; the rate of decline in new capacity is lower than expected