3 years spent more than 20 years of net profit Runda Medical in what?

Medicine network on May 18, Runda Medical and double-bought !!! This in vitro diagnostic company spent 4,468 million yuan in three years, so frequent extension mergers and acquisitions are really conducive to the follow-up development of listed companies?on the evening of May 15, Runda Medical announced that the company intends to issue shares and pay cash for 1.137 billion yuan to acquire 70% of Suzhou Run win, 70% of Shanghai Runlin, 25% of Hangzhou Yida, 60% of Shanghai Weikang and 55% of Shanghai Ruimei, while supporting the fund raising of no more than 535 million yuanAfter the transaction, the company will hold 70%, 70%, 70%, 60% and 100% of the sharesannouncement, Suzhou Run win, Shanghai Runlin, Hangzhou Yidan are engaged in medical laboratory integrated service business, with a stable sales channels and service team, in their respective services in the regional market and professional areas have a certain market shareShanghai Weikang as a professional warehouse logistics and distribution service providers, has more than 20 years of relevant service experience and necessary operating qualifications, in its main operating regions have a high market share, market position is outstandingShanghai Ruimei in the medical and health information software industry has a relatively rich customer resources, especially in the laboratory management system (LIS) sub-sector, has become one of the country's leading LIS system suppliers, market share among the bestAfter the company acquires a 45% stake in Shanghai Reme in 2017, Runda Healthcare will acquire a 100% controlling interest in Shanghai Remethese two years, frequently see the news of Runda Medical Merger, the listingon May 27, 2015 when the amount raised by raising funds does not exceed 361 million yuan, after the listing of a cumulative increase of 5 times, including 1 successful, failed 2 times, carried out 2 times, the cumulative actual net fund raising of 1.109 billion yuanAnd Runda Medical so frequent extension mergers and acquisitions are really conducive to the follow-up development of listed companies?it is understood that Runda Medical was established on January 6, 1999, headquartered in Shanghai, the legal representative is Liu Hui, the main business for all kinds of medical laboratories andthrough its own integrated service system to provide in vitro diagnostic products and professional technical support of integrated servicesthe in vitro diagnostic company achieved operating income of RMB1.295 billion in the first quarter of 2018, up 70.58 percent year-on-year, and net profit of RMB056 million, up 69.99 percent year-on-yearIn 2017, the Company achieved operating income of RMB4,319 million, up 99.51% YoY, and realized net profit of RMB219 million, up 88.26% YoYcompared with the entire in vitro diagnostic industry, Runda Medical from operating income and net profit, the results are not particularly outstandingWind data show that Runda Medical in the in vitro diagnostic industry 2017 net profit income list ranked 8th, is the median levelBut the company's ambitions have not stopped at the centre, with a spate of extended mergers and acquisitions over the past three years In 2016-2018, Runda Healthcare initiated 13 foreign mergers and acquisitions, including the ongoing May 16 transaction, with a cumulative total transaction value of RMB4,468 million In other words, the listed company spent more than two decades of net profit in three years 2016-2018 Runda Medical Mergers and Acquisitions data source: Tonghuashun, Xinkangjie collated from Runda Medical's financial situation, the rapid growth in recent years and huge mergers and acquisitions led to a very short shortage of money, cash is not enough, is a lack of money in growth, so future financing and borrowing will become the main rhythm of enterprises Wind data show that Runda Medical's current liabilities in 2017 amounted to RMB3.192 billion and long-term liabilities were RMB1,185 million High debt has also led to lower valuations for Runda Healthcare As of May 16, 2018, Runda Healthcare had a market capitalization of RMB9,035 million, which is only 2.09 times its 2017 revenue, and a price-to-earnings ratio of 3.85 and a price-to-earnings ratio of 37.27 2016-2018 Runda Medical Price-earnings ratio note: Price-earnings ratio by deducting non-current profit and loss statistics
2016-2018 Runda Medical Price-to-Earnings Ratio comparison
although the current capital market is mostly skeptical of Runda Medical, but there are also bullish Everbright Securities believes that the size of China's in vitro diagnostic market is still low, the in vitro diagnostic industry is facing broad prospects for development, with the continuous development of the industry and the company's overall integrated services business market penetration, Runda medical performance is expected to maintain a good momentum of development however, China's in vitro diagnostic industry does belong to the high demand, the market is far from being satisfied stage Authorities predict that in vitro diagnosis will maintain a compound growth rate of 15% in the next five years, and the size of China's in vitro diagnostic market is expected to reach about 64 billion yuan by 2020 As China's in vitro diagnostic market, 80% of the market share is diagnostic reagents, and another 20% is diagnostic instruments, so by 2020 China's in vitro diagnostic instrument market size may reach 13 billion yuan Runda Medical as an in vitro diagnostic products and professional and technical services enterprises in the formation of a professional full-service technical service capacity of one of the enterprises, covering the number of hospitals has reached 300, in East China, Northeast, North, Central and Southwest regions have a relatively sound service network, business scale growth is relatively fast, endogenous growth rate is better Through large-scale extended mergers and acquisitions, Runda Medical's business coverage and endogenous strength has indeed improved, the future of the company can carry high debt, smoothly enjoy the in vitro diagnostic industry cake, it is worth looking forward to.