From the beginning of 2020 of 11 yuan, all the way to nearly 300 yuan of big bull Yingke medical (300677), in the investment expansion of the road to go faster and faster.
Intech announced on the evening of March 1st that Anhui Intech Medical, a wholly-owned subsidiary, plans to invest 5 billion yuan in Intech Medical Industrial Park’s high-end medical gloves project with an annual output of 52 billion pieces (52 million boxes). The project is scheduled to start in 2021 and finish in 2023. The company expects to produce 120 billion disposable gloves annually by the first quarter of 2022.
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Expansion projects continue
InkMed was listed on the A-share Growth Enterprise Market in July 2017 as A provider of personal protective equipment, mainly engaged in the research, development, manufacturing and sales of disposable gloves, as well as providing A variety of personal protective equipment and rehabilitation care equipment. Since the beginning of the epidemic, Inkech’s share price has continued to soar, with an annual increase of more than 14 times, making it the strongest A-share price increase in 2020. At the same time, the price of its convertible bonds has risen nearly 30 times, known as the Moutai in debt.
In order to meet the market demand for disposable medical protective gloves, InkMed continues to invest and expand production. Night, according to the announcement on March 1, according to company strategy development needs, at the same time to ease the rapid growth of disposable gloves market demand, strengthen the company in the field of disposable medical protective gloves, industry status and further drive for business growth, the secco medical the wholly owned subsidiary of anhui secco medical supplies co., LTD. (hereinafter referred to as “anhui the branch”) plans to invest 5 billion yuan investment in the secco medical industrial park of 52 billion (52 million cases) only high-end medical glove project.
Project construction site is located in huaibei city SuiXi County SuiXi wuhu modern industrial park zone, plans to start time in 2021, the project completion date in 2023, the construction project with a total investment of 5 billion yuan, the project covers an area of about 911 mu, total construction area of 370000 square meters, the construction of high-end nitrile gloves production line, PVC gloves production line, and latex gloves production line, after all projects completed and put into operation will reach an annual output of 52 billion only disposable protective gloves (52 million cases).
On February 25 this year, Inke Medical said on the investor interactive platform that up to now, the company has put into production a total annual production capacity of 45 billion disposable protective gloves, including about 24 billion PVC gloves, nitrile gloves about 21 billion, the company is expected to reach the first quarter of 2022 disposable gloves annual production capacity will reach 120 billion.
In order to achieve the production capacity target of 120 billion gloves, Ink Medical has been expanding production recently. Announcement on February 4th this year, Inke Medical plans to sign the “Investment Agreement” with Pengze County People’s Government to invest in the construction of an annual output of 45.75 billion (45.75 million boxes) high-end medical gloves project, the total investment of the project is 5 billion yuan, covering an area of about 900 mu.
IPO in Hong Kong to raise capital
The massive expansion comes from huge demand.
Since the outbreak of the new crown disease in early 2020, the demand for disposable gloves has increased significantly and has exceeded the global supply. Frost&Sullivan forecasts that the global disposable glove market will grow from $8.7 billion in 2019 to $24.9 billion in 2025, with a compound annual growth rate of 19.1%.
According to Frost and Sullivan, about 529 billion disposable gloves were sold worldwide in 2019, with a CAGR of about 8.2% from 2015 to 2019. Nitrile gloves have a much higher growth rate than other types of gloves due to their high elasticity and high fit. Affected by the epidemic, it is the general trend that global residents’ awareness of health protection will be improved in the future and governments of various countries will increase the strategic reserve of medical protective supplies. It is expected that the global sales volume of disposable gloves will reach 1285.1 billion by 2025, with an annual compound growth rate of 15.9%. There is still a large growth room for the gloves market in the future.
Demand is also driving Inkech’s soaring performance. In the first three quarters of 2020, the company’s operating revenue reached RMB8.771 billion, an increase of 485% compared to RMB1.520 billion in the same period last year. On January 24, Inke Healthcare issued A performance forecast, the net profit attributable to the parent is 6.8 billion yuan to 7.3 billion yuan, an increase of 3713.45% to 3993.85% compared with the same period last year.
Expansion of production needs huge financial support. InkMed said the aforementioned expansion projects are funded by the company’s own funds or self-raised funds. To this end, IPO in Hong Kong has become another way for InkMed to raise funds. On January 29, InTech submitted its prospectus to the Hong Kong Stock Exchange, officially initiating the process of listing its H-shares.
At the latest close, Ink Medical closed at 221.61 yuan, with a price/earnings ratio (TTM) of 20.7 times, with a total market capitalization of 78 billion yuan.