Zhao Chen continued.
"Tongce Medical, oral chain.
China's oral medical service market is still in a very early stage, and the number of dentists per capita is only one-tenth of that in developed countries.
Tongce's business model is highly replicable. From Hangzhou to the whole province and then to the whole country, it can follow this path.
Pianzaihuang, the national top secret formula, has no competitors.
Its pricing power is stronger than Moutai, because no one can make the same thing.
Mairui Medical, the domestic alternative leader in medical devices.
The localization rate of monitors, ventilators, and ultrasound products is still very low. Mindray is the only local company that can compete head-on with foreign brands.
These three companies are all companies that will achieve great success in the next five years."
He walked back to his seat, sat down, and looked at Chen Xi.
"It's amazing that you can find these companies out of more than 4,000 Listed Company."
Chen Xi's face turned slightly red.
"Zhao Zong, don't praise me. I just followed the direction you gave me, looking at industries one by one and screening companies one by one.
Dening Times is because New Energy, and so is Bidiya.
Tongce and Mai Rui are for medical treatment, and Pianzaihuang is for both medicine and consumption. They are all the directions set by you."
Zhao Chen shook his head.
"I set the direction, but it is your own ability to screen out these companies.
Many people can't find a good one after looking at a thousand stores. How many have you looked at?"
Chen Xi thought for a while. "About more than two hundred. First look at the industry, then the company, and finally filter out these five companies."
Zhao Chen smiled. "We screened out more than 200 companies and found five. This hit rate is not low."
Chen Xi also laughed. "So Zhao Zong, which one do you think is the most worthy of investing among these five companies?"
Zhao Chen leaned on the back of the chair and looked at her.
"Then tell me, what do brokerages think of these five companies?
When will the annual report and first quarter report be released? Has anything happened recently that deserves attention?"
Chen Xi opened the notebook and spoke slowly but clearly.
"Let's talk about Dening Times first. It is still in the IPO queue and has not been listed, so there is no concept of stock price and annual report disclosure.
But on March 12, it updated its prospectus and planned to raise 13.12 billion yuan.
On April 4, that is, last Wednesday, Securities Regulatory Commission Public Offering Review Committee approved its IPO application. It only took 24 days from the update of Prospectus to the issuance of the IPO, setting a new record for the fastest IPO of A-share."
She raised her head and glanced at Zhao Chen,
"Brokerages have very different valuations for it. Some give it more than 20 times PE, while others give it 50 times. The reasonable stock price they give ranges from 30 yuan to 100 yuan.
At present, the company has not announced the first quarter report data, but Prospectus contains the review report from January to March 2018."
Zhao Chen's fingers tapped lightly on the table.
After 24 days, this speed is really amazing.
Dening Times's popularity in the capital market is higher than he expected.
Chen Xi turned the page.
"Bidiya, the data is relatively complete. Yesterday's closing price was about 55 yuan, and the price-earnings ratio was between 40 and 50 times.
Its annual report was disclosed on April 28, and its first quarter report was also released on the same day.
Brokerage firms' expectations for the first quarter report are generally pessimistic - the impact of New Energy Subsidy Phase-Down is concentrated in the first quarter. Institutions predict that Net Profit Attributable to Parent may only be around 100 million yuan, a year-on-year decrease of more than 80%.
However, some analysts believe that in the second half of the year, with the launch of new models and the clarification of subsidy policies, performance will bottom out and rebound."
Zhao Chen nodded. He knew the impact of the subsidy reduction.
Bidiya's darkest moment is the first half of 2018. But only those who can endure it can see the light.
Chen Xi Continue turning the page.
"Tongce Medical, yesterday's closing price was about 43 yuan, with a price-to-earnings ratio of 40 to 50 times.
Its annual report will be disclosed on April 13, and its first quarter report will be disclosed on April 27.
Brokerage firms' expectations for the first-quarter report are that revenue will increase by 25% to 30% and net profit will increase by 40% to 45%.
One brokerage specifically mentioned in its research report that in the first quarter the company organized a biennial employee overseas trip, and the actual comparable performance growth rate may be higher.
Moreover, the expansion of hospitals inside and outside the province is advancing simultaneously, and Dandelion Plan is being implemented."
She paused and her tone became more cautious.
"However, Tongce Medical also has some negative news.
On February 24 this year, Bread Finance published an in-depth article questioning Tongce Medical, titled "Concealing related relationships, financial violations, one dental hospital supports another Listed Company".
There are several aspects to the core doubts of the article."
Zhao Chen did not interrupt her and motioned for her to continue.
Chen Xi turned to another page of the notebook, and the voice slowed down a bit.
"First, conceal the related relationship. The predecessor of Tongce Medical is ST Zhongyan. When the actual controller took over in 2004, he transferred 29.69% of the equity of ST Zhongyan through Hangzhou Liqun Industrial.
At the same time, another company in Hangzhou, Hangzhou Guang Sai Electric Power Technology Co., Ltd., acquired 22.08% of the equity of ST Zhongyan at the same price on the same day.
Liqun Industrial stated at the time that it had no relationship with Hangzhou Guangsai, but in 2007 Zhejiang Securities Regulatory Bureau verified the relationship between the two companies and ordered rectification.
Second, performance depends on a single hospital.
Although Tongce Medical has 30 dental specialty hospitals, its main business is still concentrated on Hangzhou Stomatological Hospital Group. In 2018, Hangzhou Stomatological Hospital's net profit still accounted for more than 60% of the company, and the progress of copying outside the province is not fast.
Third, acquire the assets of the actual controller at a high premium. In November 2015, Tongce Medical launched a 5.5 billion yuan Private Placement plan to acquire Junhai Technology owned by the actual controller.
Junhai Technology's total assets are only 180 million yuan, but its estimated value is as high as 4.842 billion yuan, which is interpreted by the outside world as 'the left hand is the right hand'."
She closed her notebook and looked at Zhao Chen.
"These doubts have been widely circulated on the Internet. However, the research reports of securities companies do not seem to care much about these and continue to be optimistic. The differences are quite large."
Zhao Chen nodded.
"Big differences mean big opportunities. If everyone was optimistic, the stock price would have been bought up long ago.
Only when it falls down will you know whether it is a golden pit or a bottomless pit."
Chen Xi Turn to the next page.
"Pianzaihuang, yesterday's closing price was about 85 yuan, with a price-to-earnings ratio of 60 to 70 times.
Its annual report will be disclosed on April 13, and its first quarter report will be disclosed on April 27.
Brokerage firms' expectations for the first-quarter report are that revenue will increase by more than 40% and net profit will increase by 40% to 45%.
The title of Soochow Securities's report directly reads, 'Consumption upgrade drives Pianzaihuang's cycle of both volume and price increases to continue, with first-quarter performance growth reaching 44%'.
The logic of this company is very clear - the national top-secret formula has no competitors, and the core product Pianzaihuang Tablets has the ability to continuously increase prices."
Zhao Chen picked up the tea cup and took a sip.
The pricing power of Pianzaihuang is stronger than that of Moutai. Because Maotai cannot make exactly the same wine, but others cannot make Pianzaihuang exactly the same.
Chen Xi continued:
"The last one is Mairui Medical. It is also currently in the IPO queue. It submitted Prospectus on March 30 and moved to Shenzhen Stock Exchange GEM, planning to raise 6.34 billion yuan.
It has not been listed yet, so there is no concept of stock price and Financial Report disclosure.
Brokerages generally believe that Mailui is the absolute leader in domestic medical devices, with its three product lines of monitors, ultrasound, and in vitro diagnostics ranking first in the domestic market share.
However, its launch time has not yet been determined, so we need to continue to track it."
She raised her head and looked at Zhao Chen. "That's probably it."
Zhao Chen was lost in thought, and Chen Xi on the side knew that after Zhao Chen opened his mouth, the next investment target would appear.