Flower Finance Original
If investment is investment, is Tongce Medical still worthy of continuing to be favored by the public?
A few days ago, Tongce Medical, which is known as "Tooth Mao", lu Jianming, the helmsman behind this enterprise, does not have a good reputation. On the contrary, Lu Jianming has always been an extremely controversial figure.
From shockingly public insults to investors to now blatant violations of epidemic prevention policies, Lu Jianming's behavior seems to be difficult to say correct. Although his academic qualifications range from a master's degree, his character is clearly very different from his academic qualifications.
Back in the capital market, in the 13 years of listing, Tongce Medical has only paid dividends twice, comparable to an iron rooster, but it has shown a generous posture for the acquisition of Lv Jianming's related assets, which is even more confusing.
Today, the continuous high growth of Tongce Medical is also undergoing great shaking. Whether it is the continuous intensification of oral competition or the difficulty of getting out of Zhejiang Province, it is a warning that Tongce Medical has a bad future.
Controversial helmsman
Zhang Lei, a well-known investor in Hillhouse Capital, has been hanging on his lips for many years: "Investment is to invest in people, and we must find entrepreneurs who are reliable, truly have a pattern view, have a mind and have execution." ”
However, in recent years, Lu Jianming, the actual controller and chairman of Tongce Medical, which is known as "Tooth Mao", is difficult to associate with the word "reliable".
At the beginning of the New Year, Lu Jianming claimed through Weibo that he met at Jingshan Temple to pray for blessings on the first day of construction, but because of the epidemic, Jingshan Temple was not open to the public recently, and friends contacted the monks of the temple to burn three sticks of incense in the main hall.
Immediately, this matter quickly aroused widespread concern in society, and even public anger. Because of the impact of the epidemic, according to the relevant epidemic prevention and control measures, Jingshan Temple has been strictly in accordance with the policy and resolutely implemented the "double suspension" measures.
In short, Lu Jianming, chairman of Tongce Medical, inadvertently exposed the incense burning and blessing activities of Jingshan Temple, which is equivalent to exposing his violation of local epidemic prevention policies. Some netizens angrily rebuked this: "Lawlessness and morality."
However, when talking about Lu Jianming's absurd history, there are actually many indecent actions. As early as the middle of October last year, Tongce Medical's stock price fell continuously, becoming the firepower point for investors to concentrate on complaining, and Lu Jianming issued a series of fierce words.
Through its Snowball account, it said, "A person who squeezes his excretory organs every day to take aphrodisiacs is not a shareholder we welcome, and it is a shame for us to buy our stock." ”
In the end, the People's Daily issued a financial commentary: "The chairman of the listed company scolded netizens with some dirty words, obviously losing his identity and lacking a minimum of respect for shareholders or investors." The relationship between shareholders and business operators is an agency, and business operators should respect the rights enjoyed by shareholders such as the right to inquire and the right to know. ”
There is no doubt that if the relationship between listed companies and investors is tense, investors gradually drift away, and the liquidity of individual stocks may also tend to dry up, so how can its value be tapped?
Related party transaction capital game
Under the helm of Lu Jianming, Tongce Medical dividends are stingy, but the acquisition of Lv Jianming's affiliated enterprises has shown an atmospheric demeanor and is more suspicious.
According to statistics, since the backdoor listing in 2007, Tongce Medical has only paid dividends twice. Among them, the dividend in 2016 was 41.6832 million, and in 2017, the dividend was 9.6192 million, and the cumulative dividend amount of the two times was 51.3024 million yuan.
In the face of a listed company that earns more than 100 million yuan in profits every year, the cumulative dividend in the past 15 years of listing is only about 50 million yuan, if Tongce Medical is a famous iron rooster in China's capital market, it is not too much.
However, it is strange that Tongce Medical seems to be very generous to the assets of Lu Jianming, the actual controller of the acquisition company.
At the end of 2015, Tongce Medical issued an announcement that it intends to acquire 95.67% of the equity of Haijun Technology and 90% of the property share of Yinghu Creation and Yinghu Sharing for a total price of 5.051 billion yuan for a non-public offering of about 83.1739 million shares at a total price of 5.051 billion yuan.
It is understood that the estimated valuation of all the equity of the shareholders of the target company, Haijun Technology, is about 5.061 billion yuan, and the estimated appreciation rate is as high as 427.19%, corresponding to the estimated valuation of 95.67% of the equity of Haijun Technology of about 4.842 billion yuan.
According to the data, Haijun Technology is a medical information service institution that relies on Internet technology and Industry 4.0 manufacturing to provide oral and reproductive health services, and the company's business mainly includes hidden show projects, healthy reproductive services, Triloba Children's Stomatological Hospital and medical cloud.
However, it is worth noting that Lu Jianming is actually the actual controller of Haijun Technology, which holds 64.59% of the equity of Haijun Technology through Aibo Holdings, and is the controlling shareholder of Haijun Technology.
Moreover, the performance of Haijun Technology is still very poor. From 2013 to January to October 2015, the company achieved operating income of only 201,000 yuan, 200,800 yuan and 529,100 yuan, and net profit of 8.56 million yuan, 4.2988 million yuan and 10.3696 million yuan, respectively.
Admittedly, this is like a listed company that took away a shell company from the actual controller at a cost of nearly 5 billion yuan.
Fortunately, in the context of increasingly stringent domestic supervision, in May 2016, Tongce Medical decided to terminate this major asset restructuring.
However, after this time, Tongce Medical completed the acquisition of 10 long-term equity investments held by Haijun Technology Company in 2020, with a transaction consideration of 150 million yuan, and the transaction premium rate for the actual controller was as high as 522.97%.
However, 6 of the 10 target companies in the first half of 2020 suffered losses, of which 4 companies lost money in three consecutive financial reporting periods, and 2 were not in normal operating conditions.
There is greater competition within the industry and more difficult to expand outside the province
Over the years, in addition to the actual controller Lu Jianming's love to sell assets to Tongce Medical, the pressure faced by Tongce Medical itself is not small.
Up to now, even after decades of development, Tongce medical business is still mainly concentrated in Zhejiang Province. In the first half of 2021, the company achieved operating income of 1.191 billion yuan in Zhejiang Province, accounting for 90.44% of the company's total revenue, while in the same period, the company achieved operating income outside Zhejiang Province of 122 million yuan, accounting for only 9.25% of the company's total revenue.
Looking back, tongce medical's road to out-of-province expansion will also be doomed to be difficult. For example, brand potential energy generally cannot reach outside the province. Taking the Beijing market as an example, Tongce Medical competitors will become well-known hospitals such as Peking University Stomatological Hospital and the Affiliated Stomatological Hospital of Capital Medical University, the former's medical resources and popularity are not available in newly opened hospitals, and public hospital fees are usually cheaper.
In 2007, Tongce Medical also acquired Beijing Jingchao Stomatological Hospital, but due to its poor brand, it has been on the edge of loss for a long time from 2013 to January to September 2016, with losses of 300,000 yuan, 290,000 yuan, 2.19 million yuan and 2.12 million yuan respectively, and Tongce Medical finally had to put Jingchao Stomatological Hospital into in vitro incubation of listed companies.
In addition, the dependence of oral medicine on doctors is very serious, mainly relying on the doctor's craftsmanship, and there is no excessive dependence on equipment. For example, a higher-level dentist who only needs to buy a few dental chairs, rent a storefront, and rely on customers he used to be familiar with can be independent and earn a higher income than staying in the hospital.
Compared with ophthalmology, ophthalmologists have a high degree of dependence on equipment, and they are unlikely to buy equipment to open a clinic for myopia surgery, after all, a device may cost tens of millions, even if there is equipment, patients may not dare to come. This has caused the dental medical market to be much more fragmented than that of ophthalmic medical care, and the competition in the industry is larger.
One phenomenon that cannot be ignored is that the number of oral health service providers is still growing wildly. Data show that there are currently more than 60,000 oral medical related enterprises in China. Among them, nearly 70% of related enterprises were established within 5 years, and 16,945 new enterprises were newly registered in the first three quarters of 2021 alone, and most of the new institutions are self-employed.
Even if the entire track capacity is as high as hundreds of billions, it is divided by more than 60,000 institutions, and the value of a single institution can be imagined. In addition, at present, there is no real leading brand in private dental service institutions, and even chain institutions with a scale of thousands of stores are difficult to account for 5% of the market share.
On October 14 last year, Tongce Medical released its third quarterly report, and in the first three quarters, the company achieved operating income of 2.136 billion yuan, an increase of 44.16% year-on-year; net profit attributable to the mother was 620 million yuan, an increase of 55.09% year-on-year. Specifically, in the third quarter, the company achieved operating income of 819 million yuan, an increase of only 14.62% year-on-year; net profit attributable to the mother was 269 million yuan, an increase of only 7.4% year-on-year.
In the face of a sharp slowdown in performance growth, the capital market has now chosen to vote with its feet. As of February 10, 2022, the total market value of Tongce Medical was about 49 billion yuan, compared with the highlight of the middle of last year, the company's total market value evaporated by more than 80 billion yuan.