Business performance has increased significantly, and profitability has improved significantly. 2021H1 achieved an income of 1.17 billion yuan, an increase of 291.1% over the same period last year, and a net profit of 50.129 million yuan, an increase of 126.0% over the same period last year. In terms of income structure, real estate development / substrate sales / medical beauty / other income accounted for 52%, 26%, 13% and 9%, respectively.
The company's profitability improved significantly, the gross profit margin increased by 12.2pp to 27.6%, the net profit margin increased by 73.3pp to 3.7%, the ratio of fees to income decreased by 53.1pp to 21.5%, and the return on net assets increased by 14.0pp to 2.9%.
The company's cash flow continued to improve. During the period, the net cash flow increased by 230 million yuan, or 153.3%, compared with the same period last year. At the end of the period, the capital on hand increased by 69.14 million yuan, an increase of 14.5% over the beginning of the period.
Create a new benchmark for medical materials and promote the transformation of the company's medical materials manufacturers. The company adopts the strategy of "upstream foothold, mid-stream cut-in, downstream card position" to accelerate the layout of the comprehensive platform of medical ecology. The first phase of the 100000-ton medical and American base material green fiber project invested by the company has been put into production, which has achieved a new industry record of 100% excellent and good product rate in the fully automated green fiber production line, and has become a new benchmark in the green fiber production line industry, and the sales of medical and American base materials have rebounded to 300 million yuan, an increase of 59.0% over the same period last year. The company plans to promote the transformation of the company's medical and American materials manufacturers around the advantages of the industrial chain of green fiber and tube-grade cellulose films.
Acquire the target of high-quality medical service and build a chain brand of medical service. During the reporting period, it acquired 55% of Zhejiang Liantianmei and owns two 5A-level medical institutions. 2021H1 achieved an income of 300 million yuan, a net profit of 53.51 million yuan and a net interest rate of 17.8%. At present, the two medical beauty hospitals have more than 330000 members and 45600 active users in the first half of the year. The company will continue to promote the acquisition, merger, integration and promotion of medical and beauty service institutions, and open professional stores with brand effect in the vertical market, so as to form a medical and beauty service chain brand.
Based on medical beauty technology, to create a high-end medical beauty product matrix. The company launched fullerene cold application, collagen freeze-dried powder, nano-drug-loaded cold application of three new medical products, to create "makeup", "machine" and "medicine" series product matrix. The company has reached strategic cooperation with Sainuoxiu, KD Medical and other companies to carry out in-depth cooperation in the iterative research and development of medical products and laser radio frequency equipment market promotion, application and product renewal. The company will work with Fengxian District of Shanghai to build Shanghai Aoyuan Meigu into a base and trading platform for the transformation of international medical and beauty scientific and technological achievements, so as to lay a technical foundation for the development of the company.
Profit forecast and investment advice. It is estimated that the growth rate of the company's homing net profit from 2021 to 2023 is 196.9%, 211.2% and 97.8%, respectively. Considering the opening of business space in the upstream and downstream of the company, the remarkable effect of group empowerment, and the implementation of the equity incentive plan, the future performance is expected to maintain a high growth rate and maintain a "buy" rating.
Risk tips: real estate sales are not as expected, medical and beauty business layout is not as expected, green fiber production is not as expected.