标题：Hangzhou CenturyAcquiring Ewell to enter IoMT to gain differentiation advantage
发布日期：2015-12-08 11:19:19
内容： Investment positives Conventional label products to be applied to the Internet of Medical Things (IoMT) through Ewell. Afteryears of great R&D and inorganic expansion efforts, Hangzhou Century has established extensive product lines ofelectronic article surveillance (EAS) and radio frequency identification (RFID), and accumulated rich experiences in theperception layer of the Internet of Things. In 2015, the conventional EAS products maintained steady growth, and RFIDlabel products reported rapid sales volume growth. After acquiring Ewell, Hangzhou Century has become a systemintegrator of integrated medical solutions, offering new applications potential for its label products. Ewell is an e-healthcare service provider offering IoMT services to doctors, nurses and patients. Ewelloffers business line systems, smart open platforms and other conventional medical IT products. Its mobile nursinginformation system has a massive user base, and its hospital information collection platform also has more than 1,000hospital clients. In addition, Ewell offers IoMT solutions covering outpatient mobile infusion systems and real-timelocation management of personnel and resources, differentiating itself from the conventional medical IT suppliers. The two parties will jointly launch health care IT consumables and health care big data applicationproducts leveraging the synergy generated from cooperation. Hangzhou Century will likely make great effortsto explore the health care applications market. Through cooperation, the company will first expand to fields where Ewellhas established strong footholds such as outpatient services, treatment and recovery, and then will gradually expand tothe smart health check-up and healthy lifestyle markets. In addition to the existing product lines of Ewell, more healthinformation consumables will likely be launched such as temperature tags, RFID drainage bags, smart beds and RFIDclothing/quilt labels. Moreover, the company is likely to obtain multi-dimensional health care big data, including theclinical and hospital management data of HIS, real-time data of patients, nurses and doctors, as well as in-depthsolutions for insurance, drug supply and residential health management. Financials We expect its revenue to grow 74.36% YoY to Rmb856mn in 2015 and 33.64% YoY to Rmb1.145bn in 2016, and netprofit to rise 51.04% YoY to Rmb118mn or Rmb0.26/sh in 2015 and 61.71% YoY to Rmb190mn or Rmb0.42/sh in 2016. Valuation and recommendation Initiate with HOLD and TP of Rmb39.20 based on 92.5x 2016e P/E (factoring in the proposed private placement). Risks Marketing of IoMT hardware/software & smart open platforms disappoint; lower profit margin amid fierce competition.
发布日期：2015-12-08 11:19:19
内容： Investment positives Conventional label products to be applied to the Internet of Medical Things (IoMT) through Ewell. Afteryears of great R&D and inorganic expansion efforts, Hangzhou Century has established extensive product lines ofelectronic article surveillance (EAS) and radio frequency identification (RFID), and accumulated rich experiences in theperception layer of the Internet of Things. In 2015, the conventional EAS products maintained steady growth, and RFIDlabel products reported rapid sales volume growth. After acquiring Ewell, Hangzhou Century has become a systemintegrator of integrated medical solutions, offering new applications potential for its label products. Ewell is an e-healthcare service provider offering IoMT services to doctors, nurses and patients. Ewelloffers business line systems, smart open platforms and other conventional medical IT products. Its mobile nursinginformation system has a massive user base, and its hospital information collection platform also has more than 1,000hospital clients. In addition, Ewell offers IoMT solutions covering outpatient mobile infusion systems and real-timelocation management of personnel and resources, differentiating itself from the conventional medical IT suppliers. The two parties will jointly launch health care IT consumables and health care big data applicationproducts leveraging the synergy generated from cooperation. Hangzhou Century will likely make great effortsto explore the health care applications market. Through cooperation, the company will first expand to fields where Ewellhas established strong footholds such as outpatient services, treatment and recovery, and then will gradually expand tothe smart health check-up and healthy lifestyle markets. In addition to the existing product lines of Ewell, more healthinformation consumables will likely be launched such as temperature tags, RFID drainage bags, smart beds and RFIDclothing/quilt labels. Moreover, the company is likely to obtain multi-dimensional health care big data, including theclinical and hospital management data of HIS, real-time data of patients, nurses and doctors, as well as in-depthsolutions for insurance, drug supply and residential health management. Financials We expect its revenue to grow 74.36% YoY to Rmb856mn in 2015 and 33.64% YoY to Rmb1.145bn in 2016, and netprofit to rise 51.04% YoY to Rmb118mn or Rmb0.26/sh in 2015 and 61.71% YoY to Rmb190mn or Rmb0.42/sh in 2016. Valuation and recommendation Initiate with HOLD and TP of Rmb39.20 based on 92.5x 2016e P/E (factoring in the proposed private placement). Risks Marketing of IoMT hardware/software & smart open platforms disappoint; lower profit margin amid fierce competition.
