Golden Mile Medical (603882): Q3 performance continues to exceed expectations

Golden Mile Medical (603882): Q3 performance continues to exceed expectations
Event: The company released the third quarter report of 2019, and the revenue in 19Q1-3 was 39.200 million, an increase of 18% in ten years; net profit attributable to mother 3.19 ‰, an increase of 94% in ten years;59 million, an increase of 88% in one year.The company’s performance exceeded our expectations and the market.  Opinion: The improvement of laboratory operations and the growth of special inspection business exceeded expectations.The company achieved revenue of 13 in 19Q3.7.7 billion, an increase of 14 in ten years.5%; net profit attributable to mother 1.4.7 billion, an increase of 115 in ten years.5%; deduct non-attributed net profit 0.9.7 billion, an increase of 55 previously.9%.The non-recurring gains and losses are mainly the investment income obtained by the company’s sale of its subsidiary Jin Bi Rui Biological.The company’s 19Q3 net profit growth continued to exceed expectations mainly due to improvements in laboratory operations and special inspection business growth that continued to exceed expectations. The 19Q3 gross profit margin increased by 0.94pp is mainly due to the continued rapid increase in the proportion of high-end special inspection services, and the maturity of the laboratory has improved, and the decline in fixed costs per sample is also an important reason for the increase in gross profit margin.From the perspective of laboratory operations, the company’s profitable provincial laboratories increased from 23 to 27. Accelerated laboratories turned losses while profitability climbed and accelerated, which can show the continuous release of the company’s laboratory scale effect, which also brings the company’s strengthening of lean managementThe cost rate has dropped.  The short-term revenue growth rate is mainly due to the impact of business structure adjustment.Considering the improvement of the profit margin of the joint-established channel business of the county-level hospitals and the like, the company continued to actively shrink the transformation of low-margin business and improve the overall profit structure.In general, the low-margin business adjustment will help the company better focus on resources and break through key customers of the special inspection business. We believe that the adjustment is also a short-term change. Long-term ICL leaders still have increased inspection penetration and high-end business structure.Logic.  Q3 performance continued to exceed expectations. Special inspection development and laboratory losses turned to promote high growth. Maintain “Buy” rating. Considering the company’s profit improvement situation exceeded expectations, we raised the company 19?The 21-year EPS is 0.87/1.15/1.53 yuan (was 0.71/0.90/1.17 yuan), an increase of 71% / 32% / 33% a year.Considering that the company’s future laboratory will continue to reverse losses and achieve rapid profit climbing, 天津夜网 and that the company’s special inspection business will continue to grow rapidly with the company’s higher research and development and academic support, the company’s profitability will continue to increase.Maintain “Buy” rating.  Risk warning: The sales and profitability of the new laboratory are not as good as expected; the inspection service price reduction exceeded expectations.