Tongce Medical (600763) covered for the first time: Intensive cultivation in the province

Tongce Medical (600763) covered for the first time: Intensive cultivation in the province
The dental medical service industry has a large space, and the market size is expected to continue to grow rapidly.The domestic dental medical industry market size is about 96 billion yuan, with a compound growth rate of more than 15% in the past 10 years.At present, there are a large number of oral patients, but the number of consultations is relatively low. Through the improvement of oral health awareness and the increase in consumption capacity, the customer unit price and the number of consultations will steadily increase. The size of the oral service industry is expected to maintain a 15% increase over the next three years.speed. The company’s performance has continued to grow rapidly and its profit structure has been continuously optimized.The company’s performance has maintained rapid growth, and the number of consultations and unit prices has 西安耍耍网 continued to increase.With the company’s gradual development in Zhejiang Province, the performance contribution ratio of the Hangkou General Hospital gradually decreased, the branch performance ratio gradually increased, and the profit continued to improve.At present, the company’s orthodontic and planting business accounts for more than 40%. It is expected that the follow-up planting doubling plan will be gradually promoted. The transfer operation of featured branches, the planting and orthodontic business will increase to 50%, and the profit structure will continue to optimize. The unique business model builds a moat, and the extension layout is advancing steadily.Relying on rich resources of stomatologists and significant brand advantages, the company has achieved rapid expansion in the province through the “General Hospital 北京桑拿洗浴保健 + Branch” model. At present, the company’s Hangkou General Hospital is committed to maintaining 10% growth, and the Ningkou General HospitalHecheng West Branch is expected to maintain a 25% growth. The three core hospitals are the foundation for the company’s stable growth and growth.Beginning in 2015, the company accelerated the internal layout of the province. More than 10 branches were newly established in 2015-2018. After the initial cultivation, the branches generally entered a high-speed growth stage and became a new engine for the company’s performance growth.In the future, the company will continue to open branches. It is expected that through the continuous increase of the number of branches and the rapid advancement of the dandelion plan, the performance is expected to maintain a growth of more than 30% in the past two years. Covered for the first time and given a “Buy” rating.The dental medical industry where the company is located has a high-quality track, large growth space, outstanding company competitiveness, and a national layout is worth looking forward to.It is estimated that the EPS for 19-21 years will be 1.47/1.94/2.56 yuan, the corresponding PE is 67.7/51.3/38.9 times.We expect the company’s ROE in 20 years to be significantly higher than that of comparable companies, giving the company a 65-year PE target estimate for 20 years (64 times higher than the average of comparable companies), corresponding to a target price of 126.10 yuan, covering for the first time, give “buy” rating. Risk reminder: Outward development is less than expected risk, growth rate is less than expected risk; medical accident risk