Core conclusion

Event: 21H1 achieved a revenue of 1.167 billion yuan / YoY+291%; return net profit of 50 million yuan, a loss of 193 million yuan in the same period of 20 years, turning a loss into a profit over the same period last year; deducting a non-return net profit of 47 million yuan, a loss of 193 million yuan in the same period of 20 years, turning a loss into a profit over the same period last year. In a single quarter, 21Q1/Q2 achieved revenue of 6.07 / 560 million yuan, YoY+387%/222%; net profit of 0.30 / 20 million yuan, loss of 0.84 / 109 million yuan in the same period of 20 years, non-return net profit of 0.28 / 20 million yuan, and loss of 0.85 / 108 million yuan in the same period of 20 years.

Chemical fiber and real estate sectors returned to growth, and Lian Tianmei Q2 contributed to the medical sector. According to the business sector, the 21H1 chemical fiber sector achieved income of 303 million yuan / YoY+59%, accounting for 26%, mainly due to the improvement of the epidemic situation, the gradual recovery of market demand; the smooth progress of the real estate sector project led to a substantial increase in income to 607 million yuan, accounting for 52% The medical and beauty sector achieved an income of 156 million yuan, accounting for 13%, mainly due to the positive contribution made by Zhejiang Liantianmei acquired by the company in the Q2 table. Lian Tianmei's two medical hospitals Q2 achieved a revenue of 150 million yuan and a net profit of 23.99 million yuan.

With the continuous fall, the medical ecological circle has been gradually improved. The company accelerates the divestiture of its real estate business, carries it light, focuses on the medical and beauty business, and uses the funds recovered from the real estate for the development of the medical and beauty business, so as to speed up the strategic transformation of the company. Upstream medical materials and products, on the one hand, the first phase of the medical and beauty base material green fiber project was put into production; on the other hand, in July this year, the company successfully launched three new medical products, namely, fullerene cold application, collagen freeze-dried powder and nano-drug-loaded cold compress, to create a series of product matrix of "makeup" and "medicine"; in addition, the company cooperates with Senuoxiu and KD Medical to exclusively represent its medical products and laser radio frequency equipment. At the mid-stream medical and beauty service institutions, the company will continue to promote the acquisition, merger, integration and promotion of medical and beauty service institutions, and open professional stores in the vertical market with brand effect, so as to form a chain brand at the medical and beauty service side. enhance market competitiveness and brand influence.

Investment advice: it is estimated that the EPS of the company in 21-23 is 0.22, 0.37, 0.60 respectively, and the latest share price corresponding to PE is 62-37-23 times, maintaining the "overweight" rating.

Risk hint: the market competition intensifies, the progress of the transformation of medical beauty is not as expected, and the risk of medical malpractice.