A Story Of 30 Billion Market Value Leaping Forward, A Statement Of Loss In Three Years After Deduction?

On June 28, the project of Xi'an International Rehabilitation Medical Center (East Hospital District) held the commencement ceremony and the foundation laying ceremony for the new building of plastic surgery hospital.

Liu Jianshen, international medical controller, and Shi Jin, chairman of the board, were present at the ceremony.

The heated discussion of investors also makes the capital atmosphere of a hospital far greater than that of the medical sector.

It is the official commencement of this project that makes the strategy of international medicine (000516. SZ) lay out medical and health services in the next city.

From the trough of 3.92 yuan / share on April 28, 2020, the market value of this listed company has been stepping from less than 8 billion yuan to 41.7 billion yuan, realizing a qualitative change.

Who can remember that this is a department store retailer located in the northwest and rarely visited?

An aspect of A-share story

In the eyes of many investors, international medicine can be described as an enviable heavy position stock of others.

According to the incomplete statistics of the public data, since 2021, international medicine has received six batches of institutional research. On June 2 alone, hundreds of institutions including Southwest Securities, Tianfeng securities, Guangfa Securities, Huaxia Fund, Xingquan fund, Fuguo fund, Ping an asset management, China Post Savings Bank and so on, have attracted the attention of institutions.

The core story is that, as the first A-share listed company in Northwest China, international medicine has transformed its medical service from retail in recent years, forming "three major medical school districts" represented by Xi'an international medical high tech hospital, Xi'an International Medical Center Hospital and Xi'an International Medical Shangluo hospital, and meanwhile, it has laid out auxiliary reproductive medicine and medical and aesthetic services.

Each of these words can be said to have set foot on a number of hot spots.

In sharp contrast, the performance of international medicine has not taken off like the stock price.

From 2017 to 2020, the revenue of international medicine was 4.059 billion yuan, 2.039 billion yuan, 991 million yuan and 1.607 billion yuan respectively; During the same period, the net profit was 195 million yuan, 2 184 million yuan, 404 million yuan and 45 million yuan respectively, showing obvious fluctuations.

What's more, the non net profit of international medicine in the past three years has been a loss, and the loss is much more year by year.

How far to go before it becomes a "health management group providing life cycle medical services"?

The original name of international medicine was "Shaanxi liberation a".

At that time, the main business was department store retail, and the series of Xi'an Kaiyuan mall was the main asset of its department store business.

From 2002 to 2003, Liu Jianshen became the actual controller of Shaanxi liberation a through several equity transfers.

In August 2009, Xi'an high tech hospital was approved to be the first class III class a hospital run by the society in China, and was injected into the listed company on November 21, 2011.

At the end of 2014, the listed company obtained 34% shares of Beijing Hanshi United Biotechnology Co., Ltd. (hereinafter referred to as "Hans united") with a total cash of 270 million yuan.

According to the announcement at that time, Hans union was a company mainly engaged in the research and development and application of stem cell technology, and claimed to have established the world's first "stem cell bank" that could simultaneously store four kinds of placental tissue-derived stem cells. Its main businesses were placental stem cell collection and storage services, stem cell beauty and anti-aging, and stem cell drug development.

Its more intensive capital operations took place in 2018 and 2019.

During the two years, Xi'an International Medical Center Hospital officially opened a clinic in Xi'an; At the same time, listed companies have frequently signed strategic agreements with Northwest University and Shaanxi University of traditional Chinese medicine. Xi'an Central Hospital and high tech hospital are listed as affiliated hospitals of Northwest University and Shaanxi University of traditional Chinese medicine

The number of beds increased from more than 1300 in 2018 to more than 2800 in 2019, and rapidly expanded to more than 8300 in 2020.

A local source in Xi'an told the 21st century economic report that he once went to see a doctor in Xi'an Central Hospital under the banner of international medicine, "the service attitude is very good, the medical insurance channel can be used for medical treatment, and the price is almost the same as that of public hospitals.".

In his impression, international medical hospitals have also dug up resources of experts and famous doctors from all over the world, and they have a strong talent advantage.

Three comprehensive medical hospital areas in hand

The outlet of capital is always intriguing. In the international medical timeline, the stock price response in 2018 and 2019, where capital operation is extremely intensive, is far less violent than that in the second half of 2020.

How about the quality of medical assets of international medicine in the three major comprehensive medical hospital districts?

Take 2020 as an example, the total revenue of international medicine is 1.607 billion yuan.

Among them, "Xi'an high tech hospital" has achieved a revenue of 799 million yuan, accounting for about 50%“ The "Xi'an Central Hospital" achieved an income of 721 million yuan, accounting for about 45%“ The "Shangluo hospital" achieved revenue of 104 million yuan, accounting for about 6%.

From the perspective of analysis, "Xi'an high tech hospital" is the earliest and core medical asset owned by international medicine.

According to the public data, Xi'an high tech hospital was established in 1998 and officially opened in 2002; On December 21, 2020, Xi'an high tech hospital phase II expansion of the new comprehensive medical building was officially opened.

As the first comprehensive tertiary class a hospital in China, Xi'an high tech hospital is called "high tech model" in the industry.

However, its performance is intriguing: in 2017, 2018 and 2019, "Xi'an high tech hospital" achieved a net profit of 87 million yuan, 105 million yuan and 117 million yuan respectively, and its performance increased year by year, but its net profit decreased to 61 million yuan in 2020.

In this regard, on July 2, the 21st century economic report reporter called the international medical investors' contact number. The staff of the other side explained that the net profit of Xi'an high tech hospital in 2020 would drop. "There are many factors. In addition to the impact of the epidemic situation, the company sent a total of 330 high-level medical teams to fight the epidemic in Hubei...", "The second phase of high tech hospital has just been completed, and the commissioning time is not very long", which means that it takes time to reflect the performance.

On September 25, 2019, Xi'an International Medical Center Hospital, another core asset of international medicine and the largest single hospital in China, officially opened in Xi'an.

Although the hospital is equipped with the first Zeiss kinevo 900 robot operating microscope in China, the first Siemens Magnetom skyra 3.0T intraoperative magnetic resonance imaging (MRI) equipment in Northwest China, and the fourth generation Da Vinci surgical robot, the net profit of "Xi'an Central Hospital" is only - 372 million yuan in 2019.

At that time, international medicine explained that "due to the short operation time of the hospital, the possible performance contribution of the new medical service scale has not been fully reflected".

By 2020, "Xi'an Central Hospital" has begun to make efforts. Up to now, it is only 11 months since the opening of the hospital. The daily outpatient volume of the "Xi'an Central Hospital" has exceeded 1300 person times and the daily inpatient volume has exceeded 1050 beds. The number of inpatient beds has exceeded that of Xi'an hi tech hospital, which has been in operation for 18 years. The total number of outpatient and inpatient visits has exceeded 180000, reflecting the rapid growth rate of development after the opening of the hospital, In 2020, the realized net profit will be 53 million yuan, with a year-on-year increase of more than one time.

Recently, on May 27, "Xi'an Central Hospital" has been approved by the Joint Commission for accreditation of international medical institutions (JCI), and has officially obtained the JCI certificate.

Shangluo hospital, another hospital of international medicine, is still in a deficit state. In 2017, 2018, 2019 and 2020, Shangluo hospital achieved net profits of - 968600 yuan, - 9098200 yuan, - 15510600 yuan and - 30892900 yuan respectively.

On March 28, 2021, the new hospital area of Shangluo International Medical Center Hospital was officially put into operation, with a construction area of 220000 square meters and 1800 planned beds. It is mainly composed of women's and children's Hospital, rehabilitation hospital and featured specialties such as nerve, tumor, cardiothoracic, digestive, orthopedic, Ophthalmic Center, etc.

According to international medicine, "Shangluo hospital" new hospital district is a large-scale modern regional medical center constructed by the company according to the three-level a standard after Xi'an high-tech hospital and Xi'an Central Hospital.

In addition to comprehensive medical treatment, international medicine also extends its tentacles to rehabilitation and medical care: the hospital of Xi'an International Rehabilitation Medical Center is newly deployed, but it still has a loss in 2020, with a net profit of -04.6 million yuan.

Swing "slow business"

Despite the double-digit revenue scale, it is curious that the non net profit of international medicine has been losing for three consecutive years, and the loss is much more year by year.

From 2018 to 2020, the net profit attributable to the parent of international medicine was 2.184 billion yuan, - 404 million yuan and 45 million yuan respectively, while the three-year deduction of non net profit was a loss, which was -34 million yuan, - 469 million yuan and - 648 million yuan, respectively; In the first quarter of 2021, the non net profit of international medical deduction is still at a loss.

In addition, from January to June of 2018, 2019 and 2020, international medicine said that the company's new medical service projects were in the initial stage of operation, with more investment and insufficient release of income scale, resulting in negative net cash flow generated from operating activities, which were respectively -772 million yuan, - 34 million yuan and-260 million yuan.

However, in 2020, this situation will be improved, and the net cash flow generated from operating activities will be reversed to 41 million yuan.

At present, there is still a lot of gap between the medical assets of international medicine and its "profit bearing".

Taking 2018 as an example, the net profit of international medicine returned to parent company was 2.184 billion yuan, up 1022% year-on-year, but mainly from investment income.

In this year, international medicine only disposed of its Kaiyuan business, and recognized investment income of 2.967 billion yuan; Excluding the non recurring profit and loss, the international medical industry lost 34.35 million yuan.

Similarly, in 2020, the net profit disclosed by international medicine is 45 million yuan, while the amount of non recurring profit and loss in that year will reach 694 million yuan.

This year, Hanshi United (original code: 834909), which was officially listed on the new third board, terminated its listing, and then international medicine transferred its equity. The story of "stem cell bank" ended abruptly.

However, a person in the industry who has a better understanding of hospital assets has different opinions.

He pointed out to the 21st century economic reporter that the operation of general hospitals is a "slow business" and "the investment cycle of general hospitals is generally 3-5 years. In the past few years, the pressure of operation is relatively large. There are many factors that affect the performance, such as the local medical insurance policy, the local consumption capacity, and the talent reserve of the hospital".

In the view of the insiders, "the evaluation of private hospitals should not simply focus on the net profit according to the standards of manufacturing enterprises. In addition to net profit, I think we should pay more attention to the cash flow and accounts receivable of enterprises, so as to reflect the healthy level of hospital operation".

In addition to the assets of general hospitals, international medicine has attracted much attention, perhaps due to the imagination of its layout in the fields of "Medical Aesthetics" and "assisted reproduction".

These two tracks may not be "slow.".

According to the 2020 annual report of international medicine, "Xi'an Central Hospital" integrates plastic surgery, cosmetic surgery, maxillofacial surgery, dermatology and other departments to establish a plastic surgery hospital.

In response to investors' questions on the layout of medical beauty on June 8 this year, international medicine further mentioned that "the plastic and beauty Hospital of Xi'an International Medical Center, a professional medical beauty institution under the company's leadership, is led by Professor Guo Shuzhong to lead the domestic high-level plastic and aesthetic medical team from well-known top three hospitals. There are ear reconstruction center, nose plastic center, eye plastic center, fat center, maxillofacial surgery department, burn department, wound repair department, scar repair department, laser skin beauty center, injection beauty center, etc. At the same time, picoway super picosecond, thermolat plus, sinolon elosplus and CO2 lattice of doctors and technicians were introduced

In addition, the assisted reproductive medicine project of international medicine was approved by the health authorities in early 2019. At present, the IVF business will be carried out after the approval of the health authorities.

In the field of Internet medicine, Alibaba group and its "Alibaba cloud" and "Ali health" are also its partners.

It remains to be seen how much capital territory these layouts can hold up, and the final pricing remains to be given.

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