Investment Rating - The report assigns an investment rating of A+/A+ to the company and its convertible bonds [49]. Core Viewpoints - The company, Huakang Medical, is a modern comprehensive service provider for medical purification systems, focusing on creating clean, safe, and intelligent medical environments [51]. - The medical purification system market in China is substantial, with a market size of approximately 31.268 billion yuan annually, and the company holds a market share of about 4.32% as of 2023 [64]. - The company has experienced a decline in revenue and net profit in 2024, primarily due to delayed project timelines and increased accounts receivable [66]. Company Overview - Huakang Medical specializes in the research, design, implementation, and operation of medical purification systems, as well as the sale of medical equipment and consumables [51][87]. - The company serves various hospitals, including major public health institutions, and has a significant focus on the central region of China [62]. Industry Analysis - The medical purification system industry is characterized by a low level of market concentration, with many small players and few leading companies [9][42]. - The public healthcare system in China is rapidly developing, with a significant increase in the number of medical institutions, which is expected to drive demand for medical purification systems [54]. Financial Analysis - As of 2024, the company's liquidity ratios are relatively stable, with a current ratio of 1.97 and a quick ratio of 1.63, indicating good solvency compared to industry peers [69]. - The company's asset-liability ratio has increased to 44.17% in 2024, reflecting a rise in bank borrowings to support operational needs [67]. Valuation Performance - The company's price-to-earnings (P/E) ratio is 34.23, which is lower than the average of comparable companies, indicating potential for valuation improvement [71]. - The report anticipates a first-day conversion premium of approximately 28% for the convertible bonds, suggesting a favorable market reception [49]. Fundraising Project Analysis - The company plans to invest in several projects, including a smart medical IoT cloud platform upgrade and a logistics center for medical consumables, with total investments amounting to 84.032 billion yuan [4][74]. - The expected internal rate of return for the logistics center projects is estimated at 18.52% and 20.28%, indicating strong financial viability [75].
华康医疗：申购分析：现代医疗净化系统综合服务商