20180823-信达国际控股-SISRAM_MED-01696.HK-A_set_of_promosing_interim_results_6页_259kb
报告摘要
Sisram Medical Summary
Core Content
Sisram is a leading global provider of energy-based medical aesthetic treatment systems, offering a range of products and services including non-invasive treatments, beauty products, and minimally invasive procedures. The company is part of the Fosun Group and was listed in 2017. It has shown strong growth in its interim results for the first half of 2018 (1H18), with revenue increasing by 17.9% year-over-year (yoy) to US$66.3m, and profit adjusted for listing expenses rising by 25% yoy to US$11.3m. Despite this growth, the company did not declare any dividends in 1H18, with US$89.3m in net cash available for future M&A activities.
Product Line Breakdown
- Core non-invasive medical aesthetic products (hair removal, body contouring, skin tightening) accounted for 73.2% of total sales in 1H18. These products are primarily sold to hospitals and professional clinics.
- Beauty product line (simplified version for beauty shops) contributed 7.2% of sales in 1H18.
- Minimally invasive product line (Femilift, Lipolife, Vasculife) made up 11.7% of sales in 1H18.
- Current services and others accounted for 7.9% of sales in 1H18.
Segment Performance
- Asia Pacific (excluding China) saw the highest growth at 40.3% yoy, driven by market penetration in Hong Kong and strong performance in India.
- Europe and North America recorded healthy growth of 19% and 11.6% yoy respectively.
- Latin America experienced 22% yoy growth, mainly due to strong demand in Brazil.
- China market was underperforming with only 9.8% yoy growth, attributed to delays in product shipments, which are expected to improve in the second half of 2018 (2H18).
- Utilisation rate reached 80% in 1H18, up from 60% in FY17, indicating strong demand for Sisram's products.
M&A Strategy
Sisram has US$89.3m in net cash as of 1H18 and is actively pursuing M&A opportunities. These include:
- Horizontal acquisitions (e.g., other aesthetic system manufacturers).
- Downstream acquisitions (e.g., distributors to enter new markets).
The company is also setting up a team to distribute aesthetic injectable materials such as Botox and derma fillers. M&A is seen as a potential catalyst for the share price.
Valuation and Market Position
- Sisram is trading at a discounted valuation compared to global peers and Hong Kong-listed medical equipment peers.
- PE ratio for FY18 and FY19 is 17.3x and 13.8x, respectively, versus 79.1x and 51.0x for global peers, and 28.4x and 21.2x for Hong Kong peers.
- As an Israeli-based company, Sisram is immune from trade wars, which adds to its defensive positioning.
Financial Highlights
Revenue
- FY14A: US$101m
- FY15A: US$110m
- FY16A: US$118m
- FY17A: US$137m
- FY18E: US$154m
- FY19E: US$173m
Profitability
- Gross margin slightly declined to 53.6% in 1H18.
- EBITDA is expected to increase from US$27m in FY17A to US$23m in FY18E and US$26.7m in FY19E.
- Net profit is projected to rise from US$14m in FY17A to US$20m in FY19E.
Cash Flow and Balance Sheet
- Cash & equivalents increased to US$104m in FY17A.
- Net cash (debt) at year-end in FY17A was US$38m, up from US$18m in FY16A.
- Free cash flow remained stable at US$23m in FY17A.
Ratios and Performance Metrics
| Metric | FY14A | FY15A | FY16A | FY17A |
|---|---|---|---|---|
| Growth Rate | - | 9.0% | 7.0% | 15.9% |
| EBITDA Growth Rate | - | 7.6% | 2.8% | 10.6% |
| EBIT Growth Rate | - | 9.5% | 3.3% | 12.4% |
| Net Profit Growth Rate | - | 31.5% | 48.6% | 20.8% |
| Gross Margin | 51.2% | 52.0% | 52.7% | 53.5% |
| Net Margin | 5.9% | 7.1% | 9.8% | 10.2% |
| ROE | 23.7% | 24.0% | 19.9% | 3.8% |
| ROA | 2.2% | 2.9% | 2.9% | 3.2% |
| Net Gearing | 121.6% | 60.5% | 42.3% | -31.8% |
| Interest Coverage | 2.3x | 2.5x | 2.7x | 4.0x |
| Receivables Days | - | 74.3 | 78.6 | 84.6 |
| Payables Days | - | 48.7 | 46.6 | 40.4 |
| Inventory Days | 94.2 | 137.4 | 141.8 | 131.4 |
| Effective Tax Rate | 28.1% | 21.4% | 28.3% | 30.2% |
Peers Comparison
| Company | Mkt Cap (HKD mn) | FY17A PE | FY18E PE | FY19E PE | FY17A P/B | FY18E P/B | FY19E P/B |
|---|---|---|---|---|---|---|---|
| CUTERA INC | 3,715 | 66.0 | 160.9 | 51.0 | - | - | - |
| INTUITIVE SURGIC | 469,092 | 59.8 | 48.6 | 42.8 | - | 9.1 | 8.1 |
| ALIGN TECHNOLOGY | 222,111 | 96.4 | 70.6 | 56.3 | 23.1 | 20.5 | 16.5 |
| CONMED CORP | 17,269 | 42.4 | 36.0 | 32.4 | 7.3 | - | - |
| MICROPORT SCIENT | 11,931 | 39.2 | 31.4 | 24.1 | 4.4 | 3.7 | 3.2 |
| SHANDONG WEIG-H | 29,169 | 16.3 | 17.7 | 15.7 | 1.8 | 1.8 | 1.6 |
| LIFETECH SCI | 8,759 | 54.6 | 36.1 | 23.8 | - | 5.9 | 4.8 |
| Sisram Medical Ltd | 2,211 | 20.3 | 17.8 | 14.2 | 1.0 | 0.9 | 0.9 |
Analysts and Contact Information
-
Kenneth Li - Senior Research Analyst
Email: kenneth.li@cinda.com.hk
Phone: (852) 2235 7619 -
Hayman Chiu - Research Director
Email: hayman.chiu@cinda.com.hk
Phone: (852) 2235 7677 -
Lewis Pang - Associate Director
Email: lewis.pang@cinda.com.hk
Phone: (852) 2235 7847 -
Chloe Chan - Research Analyst
Email: chloe.chan@cinda.com.hk
Phone: (852) 2235 7170 -
Edith Li - Research Analyst
Email: edith.li@cinda.com.hk
Phone: (852) 2235 7515
Rating Policy
| Rating | Definition |
|---|---|
| Buy | Outperform HSI by 15% |
| Neutral | Between -15% ~ 15% of the HSI |
| Sell | Underperform HSI by -15% |
| Sector Rating | Definition |
|---|---|
| Accumulate | Outperform HSI by 10% |
| Neutral | Between -10% ~ 10% of the HSI |
| Reduce | Underperform HSI by -10% |
Disclaimer
This report is prepared by Cinda International Research Limited. The information and opinions are based on reliable sources but not guaranteed for accuracy or completeness. Readers are advised to exercise their own judgment and consult financial advisers before making investment decisions. The report contains forward-looking statements and may be subject to change without notice. It is for informational purposes only and does not constitute an offer to buy or sell securities. Cinda International is not liable for any losses arising from the use of this document.
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