Events:
On March 15, 2021, the company released its annual report for 2021. In 2021, the company's total revenue was 7.334 billion yuan (+ 6.8%) and the overall gross profit margin was 23.3% (- 3.9%). During the reporting period, the company carried out strategic upgrading and increased investment, resulting in a net loss of 1.539 billion yuan (- 61.85%), with an adjusted net loss of 1.417 billion yuan.
Comments:
Strategy 2.0 transformation: the company redivides medical services and health services, both of which maintain growth.
The drug sales in the original online medical and health mall are classified as the medical service department, while the original consumer medical care, the remaining health mall and health management and interaction are classified as the health service department. In 2021, the income of medical services is 2.288 billion yuan (+ 8%), and the gross profit margin is 36.1%. The increase in sales mainly comes from the drug sales business; the income from health services is 5.046 billion yuan (+ 6.3%), and the gross profit margin is 17.5%. Its sales growth comes from the widening of the source of users, while sales of health equipment, health products and consumer medical care also maintain steady growth.
Medical services: online consultation comprehensive payment system, the target is for high-quality users. Fee-based consultation weakens the attractiveness of C-end users in the short term, but in the long run, it is beneficial for the company to dig deep into the rigid needs and pain points of users and create a vertical field of full-course management services. Backed by Ping an Group, the company shares group technology and financial access channels and B-end users, and converts high-value users. In 2021, the company serves a total of 520 enterprises, covering more than one million employees and customers.
The company will also provide value-added membership services for family doctors in the future, and there is great potential for continuous retention and transformation of consumer behavior.
Health services: low gross margin business, income share will continue to decline. The company is based on the ability to integrate medical service resources, and the online and offline service network layout built in the early stage has brought continuous improvement of service capacity, which is still an important factor in the closed loop of Ping an health service in the long run.
Profit forecast and investment advice. In view of the fact that after the strategic transformation, the company will focus on the development of high gross margin medical services business, and its revenue share will increase significantly, resulting in an increase in overall revenue and profits, we slightly raise our expectations. The company's 2022-2024 net profit is expected to be-10.86 million (the original forecast for 2022-2023 is-1,091 million), maintaining the company's "overweight" rating.
Risk hint: policy risk, the recovery of the epidemic situation is not as expected, and the effect of strategic upgrading is not as expected.