Event: the company released its interim results for fiscal year 2022. In the six months ended September 30, 2021 (FY1H22), the company achieved revenue of 502 million yuan, up 62.3% from the same period last year, mainly due to strong growth in life science solutions and the health management platform and solution segment. Gross profit margin was 28.7%, up 0.4% from the previous month. The net loss at home was 441 million yuan, and the adjusted net loss rose to 322 million yuan from 166 million yuan in the middle of last year, mainly due to an increase in OPEX expenditure compared with the same period last year.
With the steady expansion of medical big data infrastructure, big data's platform and solutions business has entered a stage of steady growth:
FY1H22 big data platform and solutions earned 158 million yuan, excluding one-time international income from medical devices and other COVID-19 preventive products in the same period last year, up 21.1% from the same period last year. During the period, the company added two top research hospitals, two regulatory agencies and policy makers. Adjusted gross margin (excluding equity incentives and one-time income) fell 12.5 percentage points year-on-year to 43.9%, mainly due to the increase in the proportion of platform deployment with low gross margin. YiduCore, the company's core infrastructure, has gone through the early stage of the accumulation of AI capabilities and medical models, and has entered a mature and large-scale stage of intelligent evolution. With: 1) the steady expansion of the medical big data infrastructure network; 2) the increase in disease coverage and the continuous sales expansion of solutions with disease as the dimension, we expect the company to: 1) enter more than 5 top research hospital customers every year. 2) continue to expand the customers of regulators and policy makers to drive the steady growth of big data platform and solutions business, and we expect big data platform and solutions to maintain small double-digit growth in the fiscal year.
Life science solutions can effectively solve the pain points of the industry, and are expected to continue rapid growth: the revenue of FY1H22 life science solutions is 146 million yuan, up 106.3% from the same period last year, mainly due to: 1) an increase in the number of active customers; 2) a significant increase in the unit price of customers. The adjusted gross profit margin (excluding equity incentives) rose 2.5 percentage points year-on-year to 21.1%, mainly due to: 1) improved bargaining power; 2) improved human efficiency. During the period, the company completed the cardiovascular disease phase III trial for one of the top 20 multinational pharmaceutical companies in the world. The patients in the center of the company were enrolled in the group. Compared with the requirements set in advance by the customers, the efficiency was doubled and the screening failure rate was reduced by 60%. Benefit from: 1) through the hospital-end YiduCore big data infrastructure to efficiently produce high-quality clinical evidence, as well as the continuous accumulation of disease knowledge graph 2) through the research network built with experts from well-known cooperative hospitals, combined with real-world research, the company's clinical trial solutions can greatly improve the pain points of innovative drugs in the clinical trial phase, which take a long time, high cost and low success rate. the market share is expected to continue to increase, and we expect life science solutions to continue to grow rapidly.
Health management platforms and solutions open diversified growth, with broad room for growth: the revenue of FY1H22 health management platforms and solutions is 190 million yuan, a sharp increase of 642.6% over the same period last year, mainly due to strong growth in insurance services and platform solutions. The adjusted gross profit margin (excluding equity incentives) increased by 25.9 percentage points to 25.8% compared with the same period last year, and gross profit turned into profit, mainly driven by high-margin platform solutions. Through the disease model accumulated by YiduCore and AI+ Medicine to build a complete set of chronic disease dose-effect relationship digital therapy to provide personalized and integrated health management solution, the company has entered the trillion-level chronic disease management market and has a broad space for growth. During the period, the company's "Factor Health Diabetes reversal Program" realized personalized strategies and treatment plans for different users. After 12 weeks of intervention, users' glycosylated hemoglobin levels were reduced by an average of about 1%. We expect health management platforms and solutions to continue to grow at a high speed.
Earnings forecast, valuation and rating: in view of the company's business development in line with expectations, we maintain the revenue forecast of RMB 13.27 / 2.262 billion for fiscal year 2022 and RMB 3.166 billion for the new fiscal year 2024. We are optimistic that life science solutions can significantly improve the pain points of the innovative pharmaceutical industry; in addition, we maintain a "buy" rating given the broad growth space for health management platforms and solutions.
Risk tips: the promotion of medical digitization is not as expected, the competition in the medical digital industry is intensified, and the commercialization of life science solutions and health management platform and solution divisions is not as expected.