Performance summary: in 2021, H1, the company achieved operating income of 1.75 billion yuan, an increase of 120.5% over the same period last year, and a net profit of 26.692 million yuan, substantially turning losses and profits over the same period last year. Revenue and profits are close to the upper edge of the previous forecast, and the company has recovered well after the completion of transformation and upgrading.
Focus on fine management, profits are gradually restored. Before Guoshou became a shareholder, under the influence of many factors such as business model and corporate governance, the company had historical problems such as high accounts receivable and poor cash flow; after two years of adjustment and reshaping, many old contract baggage has been cleared and unloaded, and internal management has been optimized. at the same time, the synergistic and complementary effect between the company and Guoshou began to be reflected, and a number of operating indicators improved significantly. During the reporting period, the turnover days of the company's accounts receivable decreased from 120 days in 2020 to 75 days, and the payback policy achieved obvious results; the overall gross profit margin reached 34.7%, an increase of 6.36 ppm over the same period last year; sales expenses, management expenses, and financial expenses decreased by 3.1pp, 4.9pp, and 4.4 ppm respectively compared with the same period last year; the net profit returned to 26.69 million yuan, and the profit inflection point arrived as scheduled, and the reform and transformation began to bear fruit.
The traditional innovation two-wheel drive, each business continues to develop. The company's "32nd" business structure is advancing well. The revenue of traditional intelligent health care and intelligent government affairs is 780 million yuan and 740 million yuan respectively, an increase of 88% and 176% respectively over the same period last year, and the gross profit margin is increased by 2.43pp and 13.2 pp. the revenue of Internet innovation business represented by Bull Health and citizen cloud is 230 million yuan, an increase of 107% over the same period last year, and the gross profit margin is increased by 11.04pp. During the reporting period, the company won medical and government orders from many provinces and cities, and the quality of the project was greatly improved; at the same time, Manniu Health added 876000 registered users, a month-on-month increase of more than 2 times, and the total number of cities signed by citizens reached 23, covering more than 140 million people. traditional and innovative businesses have expanded well and are expected to maintain high-quality growth in the future.
3 billion set to increase the release of the plan, the performance is expected to accelerate. In August, the company released a planned increase plan for 2021, with a planned fund-raising scale of no more than 3 billion yuan, of which 1.014 billion yuan will be used for future public health and medical innovation management service projects, 890 million yuan will be used for future urban wisdom service platform projects, 200 million yuan will be used for enterprise human resources digital platform projects, and 896 million yuan will be used to repay bank loans. It is expected that after the landing of the fixed increase, the foundation of a number of businesses is expected to be further consolidated, and the company's market competitiveness will be further enhanced.
Profit forecast and investment advice. It is estimated that in 2021-2023, the company's return net profit CAGR will reach 39.2%. After Guoshou takes over, the synergy effect begins to appear, the company's operating efficiency and profitability have improved significantly, the transformation and upgrading have made steady progress, and the company is optimistic that the company will step into the fast lane of development. It is recommended to pay attention to the follow-up profit elasticity and the long-term growth of business such as Bull Health, and maintain the "hold" rating.
Risk tips: the expansion of innovative business such as Bull Health is not as expected; the synergy between the company and Guoshou may not meet expectations; market competition intensifies, and so on.
