FinancialAnalysisReportAllmedMedicalGroupmember:刘洁2017905210李金凤
2017900590刘伟博2017905248黄凯莉2017905985TableofContents12345Finan
cialAnalysisReferenceMotivationConclusionCompanyProfileWhydow
echoosethemaskindustry？Recently,Withthecontinuousdevelopm
entofthecrownpneumoniaepidemicandthearrivalofthepeakr
eturntrip,thesupplyanddemandofmasksinmanyplacesistigh
t,andeven"acoverisdifficulttofind".outbreakepidemicRapid
lygrowthDailynecessitiesInourdailylife,wealsowearmasksm
ostofthetime.wearingmaskscancutoffthespreadoftheviru
sandpreventcoldandkeepwarm,preventharmfulgasesin.Atho
spitals,doctorsandpatientsalsowearmaskstopreventthespre
adofthevirus.Chinaistheworld''slargestproducerandexporte
rofmasks,Inaddition,withthecontinuousdiversificationofm
askapplicationscenarios,maskproductscontinuetodifferentiat
eintoprofessionalfields.Chapter1MotivationWhydowechooseA
llmedmedical(AMYL)toanalysis?AMYLhasbecomealeadingmanuf
acturerandexporterofmedicaldressingsinChina.Companyto"m
eettheneeds,dobetter"foritsqualityandservicepurposes,s
trictlyfollowtheFDA,CGMPmanagementrequirements,andmanydo
mesticandforeignmerchantstoestablishastableandclosebusi
nesscooperationanddevelopmentrelationship.MotivationWhydowe
chooseAllmedmedical(AMYL)toanalysis?Afterthreetimesofe
xpansionconstruction,threeproductionshavebeenbuilt.Thecom
panyhas4inventionpatentsand6utilitymodelpatents.AMYLme
dicaltextileindustrialclusterwasincludedintothekeygrowth
industrialclusterofHubeiprovince.InMarch2020,withamark
etvalueof21billionyuan,itrankedthe72ndinthe"HurunCh
ina2020100stronghealthyprivateenterprises"MotivationWhydo
wechooseYuwellMedical(YYYL)tocompare?YYYListhelargestpr
ofessionalmanufacturerofmedicalequipmentforrehabilitation,
nursingandmedicaloxygensupplyinChina,andAMYListhetopm
edicalequipmentcompanyinChina.Thereisstrongcompetitionbe
tweenthetwocompanies.Thecompanyhavebeenwellknownbythei
nternationalcounterparts,hasbecomethemajorityofdomestican
dforeignprocurementpreferredbrand.Willbeastrongcompetito
rforAMYLhealthcare.MotivationChapter2.CompanyProfileCompany
Name:Allmedmedical(AMYL)StockCode:002950EstablishedTime:2
002Address:ShenzhenBusinessscope:Medicaldressingsandequipme
ntNatureofthecompany:QuotedcompanyCompanyProfileSWOT1.Thef
irmhavealargescaleofproduction.2.Thefirmhavegoodproduc
tqualityandgoodreputation.Exportmore,domesticpopularityis
nothigh.StrengthsWeaknessesTherearemanyenterprisesinthe
industryandthecompetitionisfierce.Easilyaffectedbyeconomi
cfluctuationsandforeignexchangefluctuations.Nationalpolicy
support.People’sawarenessofprotectionisincreasing.ThreatsOp
portunitiesAdvice:WesuggestAMYLtomaintaintheleadingposi
tionintheindustry,seizetheopportunitytoraisedomesticpop
ularitytoexpandthemarket,raisetheriskawareness,conducto
verallstrategytoavoidtheimpactofeconomicandforeignexcha
ngefluctuations.Chapter3FinancialAnalysis1.LiquidityAnalysi
s2.ManagementAnalysis3.ProfitabilityAnalysis4.CashFlowAnal
ysis5.MarketValueAnalysis1.LiquidityAnalysisCurrentRatioCur
rentratio=Currentassets/CurrentliabilitiesWhydowechoosecur
rentratio?Itisthebestmeasureofafirm’sabilitytoconvert
currentassetsintocashtomeetliabilitiesbeforeshort-termd
ebtmatures.Itisthemostcommonlyusedmeasureofshort-terms
olvency.1.LiquidityAnalysisReviewGenerally,thecurrentratio
shouldbe2.0.Inthisindustry,thecurrentratiousuallyaround
2.8.Toohigh,thecompanytakeuptoomuchmoneyonthecurrent
assets,willincreasetheopportunitycostofbusinessinvestment
.Toolow,thecompany’sshort-termdebtpayingabilityshouldbe
doubted.1.LiquidityAnalysisThechartofcurrentratioUnit:times
?2015201620172018AMYL1.381.291.251.3YYYL2.617.264.953.44INDAVG3.
232.732.652.681.LiquidityAnalysisComparisonAnalysisUnit:times
Accordingtothecomparisonanalysiswecansee:AMYL’scurrent
ratioalwayslowerthanYYYL’s.AMYL’scurrentratioisalsolowe
rthantheindustryaverage.That’sbecauseAMYL’sjustholdona
smallportionofcash.UnderAMYL’smanagementmodel,thefirmr
arelyusecashindailyoperatingactivities,sothefirmjustke
eponlyasmallportionofcashtomeetthespecialneedsofthei
rdailyoperations.AMYLholdonalargeportionofshort-termloa
ns,in2018,AMYL‘sshort-termloansis￥80000,butYYYLonlyhas
￥15000.1.LiquidityAnalysisTrendAnalysisFromthechartwecan
see,from2015to2017,theratiograduallydeclined,thenin201
8,theratioincreased.Butoverall,theratiohasn’tchangedmu
ch.Unit:timesTherawmaterialofAMYL’sproductsismainlycott
on.Since2015to2017,thepriceofcottoninourcountryrising
upeveryyear,AMYLdoesn’thavesufficientfundstomaintainno
rmaloperatingactivities,soitcanonlyincreasetheshort-term
loans.In2018,AMYLchoosetoimportcottontodecreasethecos
tofproducts.Meanwhiletheshort-termloansdecreased,sothec
urrentratiorisingupto1.3.1.LiquidityAnalysisAdviceAccordin
gtothecomparisonanalysisandtrendanalysiswecansee,AMYL’
scurrentratioismuchlowerthantheindustryaverage,evenles
sthanhalfoftheINDAVG.ItprovedthatAMYL’sshort-termdebt
payingabilityisveryweak.Accordingtoourresearch,Isugges
t:First,increasecashholdings,AMYLcanexpandthescaleoffun
draisingandkeptthemincash.AMYLholdstoolittlecashtode
alwithriskssuddenlyhappenedinoperatingactivities.Increase
cashholdingscaneffectivelyincreasetheabilityofshort-term
debtpayingandtheabilitytodealwithunexpectedrisks.Secon
d,decreasetheshort-termloans.AMYLcanchangethecapitalstr
ucture,replacetheloanswithattractinginvestment.2.DebtManag
ementAnalysisDebttoEquityRatioDebttoEquityRatio＝TotalLia
bilities/Shareholders''EquityWhydowechoosethisratio?Thedeb
ttoequityratioisanimportantindicationthatmeasuresthefi
rm''slong-termdebtpayingability.Theratiocanreflectwhether
theentity''sfinancialsructureisstable.Theratioalsohelps
determinehowwellcreditorsareprotectedincaseofinsolvency.
2.DebtManagementAnalysisReviewUsuallyitisbetterwhenshareho
lders''equityishigherthantotalliabilities.Fromtheperspecti
veoflong-termdebtpayingability,thelowerthedebttoequity
ratio,thebetterthecompany''sdebtposition.Fromthefinancials
tructure,thehighertheratio,thehigherriskandhigherreturns
.2.DebtManagementAnalysisThechartofdebttoequityratioUnit
:%?2015201620172018AMYL85.9186.32106.87119.44YYYL37.2317.7720.35
14.63INDAVG53.7317.7020.3514.632.DebtManagementAnalysisCompari
sonAnalysisUnit:%AMYL''sdebttoequityratiohasbeenhigherth
anbothYYYL''sandINDAVG.AndAMYLhasaveryhighdebttoequit
yratiowhoseaverageis99.64%,nearlyabout100%,farbeyondthe
INDAVG.AMYL''swayoffinancialchannelissolitary,mainlybankl
oanandAMYLalwayspayalotofdividendseachyear.Therefore,in
ordertoenlargethescaleofinvestment,ithastoincreasethe
amountofliabilities.Besides,theAMYL''sfinancialsubsidyhasa
largeamountofannualdeferredincomewhichcausesrelativelyhi
ghnon-currentliabilities.However,highdebttoequityratioalwa
ysindicateshighfinancialrisk.2.DebtManagementAnalysisTrend
AnalysisThedebttoequityratiohasbeenincreasingcontinuously
since2015,andhasroseby119.44%bytheendof2018.Itshowsa
nupwardtrend.Duetotheagingproblem,theimprovmentofthese
lf-hygieneconsciousnessandsoon,themedicaldressingmarketis
hugerigiddemand.Therefore,AMYLhaskeptexpandingitsscaleof
productionbysellingoncrdit,borrowingmoneyfrombankandso
onwhichcausestheincreaseofitsliabilities.Unit:%2.DebtMan
agementAnalysisTrendAnalysisIn2018,AMYLexpanditsliabiliti
estoimprovetheoperationinordertolistsuccessfully.Thegr
owthratefrom2016to2017isrelativelyhigh.ThatisbecauseAM
YLrealizedtheimportanceofthedomesticmarketandthenraised
fundsthroughaddingupliabilitiestoincreasetheinvestmenti
ndomesticconsumes.Unit:%2.DebtManagementAnalysisAdviceThed
ebttoequityratioofAMYLisalittlehigh,andithasshowna
upwardtrendinthepastthreeyears.Basedonthereasonsthatw
ediscoveredearlier,weproposethefollowingrecommendations:AM
YLshouldcollectitsaccountsreceivablequicklyandpromotethe
salesofitsinventoriestoobtainmoremoneytorepaythegradu
allyincreasingshort-termdebttoreducethescaleoftheliabil
ities.Andthenimprovethecompany’ssolvency.AMYLshouldbroad
enfinancialchannelstospreadrisk.AMYLcoulddeclinethedistr
ibutionofdividendsandmakefulluseofthemoneysavedtorein
vestinsteadofdependingtoomuchoncreditors.3.ProfitabilityA
nalysisReturnonEquityROE＝NetIncome/TotalEquityWhydowechoos
ethisratio?ROEisthecoreindexthatmeasuresprofitabilityb
ecausethefundamentalgoalofafirmistomaximizetheowner’s
equityorshareholders’value.ROEcannotonlydirectlyreflect
theabilityofthecapitalappreciationbutalsoaffecttheshare
holders’value.Stockholdersexpecttoearnareturnontheirmon
ey,andthisratiotellshowwelltheyaredoinginanaccounting
sense.3.ProfitabilityAnalysisReviewAhigherROEindicatesahig
herprofitabilityandbetterutilizationofcapital.Afirmwith
ahighROEisalwaysdoingwellandcanattractmorepotentialin
vestorstoconvertintocommonstockholders.Bycomparingtheind
ustryaverage,ROEcanreflectthefirm’sprofitablelevelinthe
sameindustryandthedifferencesbetweenothercompetitors.3.Pr
ofitabilityAnalysisThechartofROEUnit:%2015201620172018AMYL1
5.9924.6321.4817.35YYYL18.8514.3111.3713.69INDAVG31.7227.9913.39
7.313.ProfitabilityAnalysisComparisonanalysisUnit:%AMYL’sROE
islowerthanbothYYYL’sandINDAVGin2015,andthenwentuphi
gherthanYYYL’sbutlowerthanINDAVGin2016.Theratiodecreas
edin2017and2018buthigherthanbothYYYL’sandINDAVG,whic
hindicatesitobtainahighincomefromitsowncapital.3.Profit
abilityAnalysisComparisonanalysisUnit:%ComparingtoYYYL’sand
INDAVG,AMYL’sROEisrelativelylowin2015duetothelowret
urnonassetsandthelownetprofitratiobecauseofthehighsa
lecosts.AMYL’sROEhasbeengraduallyhigherthanYYYL’sandIND
AVGinthepasttwoyears.ThatisbecauseAMYLincreaseditsli
abilitiesandtheinterest-bearingratioisrelativelyhigh.Ther
efore,theoperatingconditionofAMYLisgood.3.ProfitabilityAn
alysisTrendanalysisFrom2015to2016,AMYL’sROEhaverosedramat
icallyfrom15.99%to24.63%butthentheROEhasfallenby7.28%
bytheendof2018.Therewasarisein2016.Thatisbecausethe
effectivetaxratehasdroppedsignificantlyin2016whichresult
edinahighernetprofit.Duetotheincreaseofthepriceofcot
tonandRMBexchangerate,theincreaseinmainoperatingcostsha
sbeengreaterthantheincreaseinrevenuesince2016.Meanwhile
theinventoryturnoverratioisdeclining.Thisisnotagoodtre
nd.Unit:%3.ProfitabilityAnalysisTrendanalysisBesides,AMYL''sbi
ggestsourceofrevenuehasbeenoverseasmarket,andbecauseoft
heover-dependenceonoverseasmarketandthesignificantmarket
fluctuations,AMYL''snetprofithasbeendeclinedsince2016.3.Pr
ofitabilityAnalysisAdviceTheROEofAMYLisinmostcaseshigher
thanYYYL’andINDAVG,butithasshownadownwardforthepast
twoyears.Basedonthereasonsthatwediscoveredearlier,weg
ivesomeadvicesasfollows:Comparedtoothercompetitors,AMYLs
houldpromoteitssalesrevenueandimplementatightercostcont
rolplantoincreasethenetprofit.Optimizethecapitalstructur
e,repaysomedebtsanddeclinetheexpenditureofthefinancial
costs.Focusmoreonthedomesticmarketsoastodecreasethebad
influencecausedbyoverseasmarket.4.CashFlowAnalysisOperatin
gCashFlowperShareOperatingCashFlowperShare=OperatingCa
shFlow–PreferredDividends/DilutedWeightedAverageCommonS
haresOutstandingWhydoweselectthisratio?Becausethecalcul
ationofcashflowdoesnotinvolveaccrualbasis,theuseofper
sharecashflowtoanalyzetheprofitabilityofthecompanyism
oreobjectivethanearningspershare,andhasitsuniqueaccurac
y.Thisindexreferstotheratioofthenetcashflowofoperatin
gactivitiestothetotalcapitalstock,whichisusedtoreflect
theabilityoftheenterprisetopaydividendsandcapitalexpen
diture,thatis,themaximumdividendcapacityoftheenterprise.
Comparedwithotherindicators,theindexismoremeaningfulfor
theinvestors.4.CashFlowAnalysisTheexplanationofOperatingC
ashFlowperShare:Theoperatingcashflowpersharereferstoth
enetcashflowofthecurrentperiodtothetotalequity.Thehi
gherthecashflowpershare,themorethecompanyisabletopay
cashdividends.4.CashFlowAnalysisThechartofOperatingCa
shFlowperShareUnit:yuan2015201620172018AMYL0.61 1.260.520.01YY
YL0.931.010.240.80INDAVG0.750.710.670.764.CashFlowAnalysisCom
parisonAnalysisUnit:yuanIn2016,2017AMYL’sratioishighertha
nYYYL,becauseoutsourcingrevenuefromInternationalmarketis
increase.ButIn2015,2018AMYL’sratioislowerthanYYYL,Bec
ausethecompany''sabilitytorefundsalesisweak(Accountsrecei
vableandnotesreceivable2015:0.16billion,2018:0.21billion).4
.CashFlowAnalysisComparisonAnalysisUnit:yuanAccordingtothec
omparisonanalysiswecanseeAMYL’sOperatingCashFlowperShar
eratiolowerthanINDAVG’sexceptforthe2016,.Themainreason
isthatAMYLincreasedinvestmentinthemarketingsystemandex
changelossescausedbythedepreciationofthedollar.4.CashFlo
wAnalysisTrendAnalysisFromthechartwecansee:From2015to2
016,thisratioquicklyincreasedfrom0.61to1.26.The0.65yua
nincreasewasbecausethemedicaldeviceIndustryofChinaisi
nthegoldendevelopmentperiod.Ingeneral,thegrossdomesticp
roductandsalesvolumeofChina''smedicaldeviceindustryhavem
aintainedasteadygrowth.Unit:yuan4.CashFlowAnalysisTrendAnal
ysisFromthechartwecansee:From2016to2018,thisratioquic
klydroppedfrom1.260to0.01,whichindicatesthatthecashflo
wofAMYLdeterioratedrapidlyduringthethreeyears.Byanalyzi
ngthecashflowstatementandtheincomestatementofAMYL,wef
oundthatthenetcashflowfromAMYL''soperationsdecreasedfrom
473millionto135millionyuan.AmajorreasonisthatAMYLsuf
feredthefinancialcrisisandstrictenvironmentalregulation,wh
ichhasreducedoperatingprofitsandraisedcosts.Unit:yuan4.Cas
hFlowAnalysisAdviceBecause2016-2018,AMYL''sindicatorlevelh
asdroppedsharply,sowerecommend:Thecompanyshouldincreasei
nvestmentine-commercechannelsbecausee-commerceisaverygoo
dsalesroute.,anditshouldenhancethemanagementofaccountre
ceivablesandpromotethesalesofitsproductassoonaspossibl
e.AMYLshouldstrengthentheinternalcontrolofthecompanyand
exercisecautioninthemanagementpersonnelchangestoprevent
confusioninthemanagementofthecompany.5.MarketValueAnalysi
sMarketValueAnalysisEPS(EarningsPerShare)EPS=(NetIncome-Pre
ferredDividends)/WeightedAverageNumber
ofCommonSharesOutstandingWhydoweselectthisratio?Itis
oneofthemostimportantindextodeterminewhethertobuyast
ockornot,foritsnotonlyafundamentalindextoanalyzeasto
ckbutalsoacomprehensiveindextoreflectthecompany’sabilit
ytoearnmoney.Itishelpfulforcomparingwithothercompanies
thathavedifferentcapitalscaleoranalyzingacompany''specun
iaryconditionindifferentperiods.5.MarketValueAnalysisReview
Thisratioreflectstheafter-taxprofitcreatedpershare,highe
rEPSrepresentsbetterprofitability.Moreearningspersharedoe
snotnecessarilymeanmoredividends,butalsodependsonthedi
videnddistributionpolicyofthecompany.Earningspershareonly
representtheearningspershareofayear,andtheydonothave
continuity,soitcannotbeusedasanindicatorofthegrowth
ofthecompanyalone.5.MarketValueAnalysisThechartofMarketV
alueUnit:yuan2015201620172018AMYL0.630.640.610.60YYYL0.620.530.5
90.73INDAVG0.740.640.710.765.MarketValueAnalysisComparisonAna
lysisUnit:yuanAMYL''sEPShasbeenmorethanthatofYYYL''inthe
pastthreeyears,butultimatelyAMYL''searningsPerSharelower
thantheYYYLin2018.AMYL''sEPSwas0.02yuanmorethanthein
dustryaveragein2016,andthenit''slowerthantheindustryave
rageinotheryears.5.MarketValueAnalysisComparisonAnalysisUni
t:yuanAMYL''sEPShasbeenlowerthanthatofindustryaverageexc
eptforthe2016,andlowerthantheYYYLin2018.whichshowsthat
thenetprofitofAMYLisveryseriousandthecompany''sprofita
bilityhasfallen.Byconsultingthecompany''sfinancialstatem
ents,wefoundthatthedeclineofAMYL''sEPSisthatthegrowth
rateofoperatingincomeislessthanthegrowthrateofoperatin
gcost,andcostofsaleshaverisensharply.5.MarketValueAna
lysisTrendAnalysisTrendTheEPSofAMYLtendstobestable,and
thecompanyhasexperiencedslightfluctuationsinrecent4yea
rs.ReasonInthelastfouryears,AMYLmaintainedaconservativean
dstablebusinessmodel,itstotalassetandtotalliabilitiesdi
dn’tchangetoomuch.Unit:yuan5.MarketValueAnalysisAdviceAMYL''
sEPShasbeenlowerthanthatofindustryaverageexceptforthe
2016,andlowerthantheYYYLin2018.Atthesametime,AMYL''sEP
Sshowedanstabletrend.Thecompanyshouldchangeitscurrentma
rketingstrategy,anditshouldenhancethemanagementofaccount
receivablesandpromotethesalesofitsproductassoonasposs
ible.Thecompanyshouldacceleratetheimplementationofthebra
ndstrategyplan,increasetheefficiencyofmarketingfunds,and
strivetoachieverapidgrowthofoperatingincomeandpromotet
herapidgrowthofnetprofit.Chapter4ConclusionChapter4Concl
usionThrough?the?above?financial?data?analysis,?we?can?draw?a?co
nclusion.AMYL’s?liquidity?is?worse?than?the?YYYL’s?and?IND?AVG’s.
The?ratio?of?cash?to?current?assets?is?verysmall,?soitisnece
ssarytoincreasecashholdingsandreducecurrentliabilities.AM
YL’s?debt?paying?ability?is?worsethan?YYYL’s?and?IND?AVG’s.The?c
ompany?shall?promptly?collect?its?accounts?receivable,reduce?the
scaleofdebt,decline?the?distribution?of?dividends.The?ROE?of?
AMYL?is?higher?than?YYYL’?and?IND?AVGinthepasttwoyears.AMYL?
should?increase?sales,?increase?the?net?profit,?Optimizethe?capi
tal?structure,reducethefinancialcostofspending.Conclusion
AMYL’sOperatingCashFlowperShareratiolowerthanINDAVG’se
xceptforthe2016.Thecompanyshouldmakerationaluseofmarket
ingstrategies,andstrivetoachieverapidgrowthofoperatingr
evenueandnetprofit.AMYL''sEPShasbeenlowerthanthatofindustryaverageexceptforthe2016,andlowerthantheYYYLin2018.Thecompanyshouldchangethecurrentmarketingstrategy,itshouldstrengthenaccountsreceivablemanagement.ConclusionSummaryAboveanalysis,AMYLprofitabilityandmarketvalueanalysisisgood,buttheliquidity,solvencyandcashflowsituationneedtobeimproved.Thecompany′sprospectarenotgood,burtherearesomeburningissues.Firstofall,thecompanyhastoolittlecashholdings,resultinginpoorliquidity,sothecompanyshouldincreasethescaleoffundraisingtoincreasecashholdings.Second,thesolvencyisrelativelyweak,accountsreceivablerecoveryisnottimely,thecompanyshouldstrengthentheaccountsreceivablerecovery,absorbmoreinvestment.Third,themarketingstrategyistooweak,shouldchangethecurrentmarketingstrategy,makemarketingreform,promotethesaleofproducts.Thelong-termdevelopmentvisionofthecompanyistobuild"AMYL"intoafamousenterprisewithglobalinfluencebyrelyingonthetwocorecompetitivenessof"scale,intelligence,automaticproduction"and"marketoperation".Referencehttp://finance.sina.com.cn/http://finance.sina.com.cn/http://www.baidu.com/http://www.baidu.com/http://cn.allmed-china.com/http://cn.allmed-china.com/http://www.cninfo.com.cn/http://www.cninfo.com.cnThankyou |
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