Zhitong Financial APP learned that Guoxin Securities issued a research report that downgraded Alibaba Health Information Technology (00241) to "neutral", lowered the company's growth expectation and adjusted the valuation multiple to reflect its rapid deterioration in revenue growth and losses in increased investment when there was a lack of traffic at the main station. Using the distribution valuation method, the corresponding valuation range for FY2023 is HK $7.54-8.91, which is reduced by 28%. 36%.
The main points of Guoxin Securities are as follows:
Financial performance: slower income growth and performance losses
FY2022H1, the company achieved operating income of 9.358 billion yuan, an increase of 31% over the same period last year, and the revenue growth rate was 44% lower than that of the same period last year. Non-GAAP net profit-283 million yuan, net interest rate of-3.28%, the first loss since fiscal year 2019. The reason for the loss is the deterioration of gross profit margin caused by the change in the proportion of categories and commodity promotion, while the increase of brand marketing increases the expense rate.
Pharmaceutical e-commerce proprietary business: continue to promote drug sales, active consumer growth slows down
FY2022H1, pharmaceutical e-commerce business revenue of 8.1 billion yuan, an increase of 34.5% over the same period last year, down from 75% growth in the same period last year. Among them, the growth rate of prescription drug revenue is as high as 127.3%, and drug revenue accounts for 64% of the proprietary business. The number of active consumers in self-operated stores reached 90 million, an increase of 9 million compared with the previous four financial reports, which showed an increase of more than 10 million in half a year.
Pharmaceutical e-commerce platform business: the lack of traffic at the main station leads to a decline in growth.
The business income of FY2022H1 and Alibaba Health Information Technology platform was 1.01 billion yuan, an increase of only 9.2% over the same period last year, down from 72% in the same period last year. Referring to the online retail sales of physical goods of the National Bureau of Statistics, there was only single-digit growth in the third and fourth quarters of 2021, and the bank estimated that BABA's GMV growth trend was synchronized. The decline in the growth rate of traffic at the main station results in poor business performance of the pharmaceutical e-commerce platform.
Health care and digital services: acquisition of deer Chinese medicine, launch of insurance products
FY2022H1's revenue from health care and digital services was 228 million, an increase of 13.9 percent over the same period last year. The average daily consultation volume of medical deer APP was 250000. Alibaba Health Information Technology acquired Xiao Lu TCM in August 2021. In addition, Alibaba Health Information Technology launched a series of chronic disease management insurance products.
Risk Tips:Changes in medical policy affect the prospects of the industry, data security and anti-monopoly regulation affect the mode of transportation and management, product problems or improper use of drugs lead to accidents affecting the company's reputation and intensified competition in the industry.