Elon Technology: the model of China's new intelligent medical enterprise, Elon Technology, was founded in 2006. In 2021, the company was successfully listed on the Shanghai Stock Exchange Co., Ltd., which mainly provides the overall solution for the intelligent management of medical materials for medical service institutions at all levels. As the company's integrated products have been recognized by the market, the number of orders has increased. In 2021, the company realized operating income of 389 million yuan, an increase of 25.60% over the same period last year, and net profit of 96 million yuan, an increase of 33.40% over the same period last year. In the first quarter of 2022, the company realized revenue of 43 million yuan, an increase of 7.91% over the same period last year, and a loss of 393100 yuan, a decrease of 106.67% over the same period last year. The main reason is that the domestic epidemic has a certain impact on the company's installation progress. The large fluctuation on the profit side is mainly affected by the time point of the software sales tax rebate to the account.
Pharmacy automation upgrade is unstoppable
Pharmacy automation can optimize the disadvantages of traditional pharmacies: pharmacists manually pick up / distribute drugs for a long time, low efficiency; a large number of people waiting in the queue, a high probability of cross-infection; the accuracy of dispensing can not be guaranteed, unable to carry out fine drug supply chain management. "New Medical Infrastructure"
Driven by the rapid growth of industry demand, the data analysis of Ruida Heng bidding website pointed out that the amount of newly signed contracts for new medical infrastructure increased by 77.3% in 2021 compared with 2020, with a compound growth rate of 29.0% from 2013 to 2021. Compared with the permeability of foreign automatic dispensing machines and intravenous dispensing robots, the industry has more room for development.
Smart pharmacy project
The revenue of Wisdom Pharmacy series products and the company's Wisdom Pharmacy series products from 2017 to 2021 have maintained steady growth. In 2021, the company's product revenue in this sector was 279 million yuan, an increase of 33.22% over the same period last year. "New medical infrastructure" + national industry favorable policies, promote the rapid growth of the industry, Elon technology will continue to benefit. The door / emergency wisdom pharmacy is based on automatic dispenser with low domestic market penetration and large sinking space; Elon technology has the advantage of first-mover and strong brand influence; and the improvement of after-sales service system is conducive to secondary sales and is expected to maintain steady growth in the future. The intelligent transformation of domestic in-hospital static distribution center has become a new trend, and the company's static distribution center wisdom pharmacy is expected to usher in a major development opportunity. Under the guidance of the policy of "prescription outflow" and "Internet + Medical and Health", domestic pharmaceutical retail enterprises began to actively explore the new retail model of out-of-hospital automated pharmacies. The automated upgrading of retail pharmacies provides a huge demand space for the automated drug management market, and the company's out-of-hospital wisdom pharmacy is expected in the future.
Wisdom Ward and Intelligence Logistics
The company continues to enrich the wisdom ward series of product lines, improve product performance. In 2020, the revenue of this sector reached 29.68 million yuan, an increase of 33.87 percent over the same period last year. In 2021, the revenue of this sector reached 17.24 million yuan, down 41.9 percent from the same period last year. In 2021, the revenue of the company's intelligent logistics products increased significantly. As the company's integrated logistics products were recognized by the market, the demand increased, and the revenue of this sector reached 46.65 million yuan, an increase of 78.53% over the same period last year. Elon Technology has been ploughing the field of wisdom pharmacy for many years, and its rich channel resources contribute to the promotion of the company's wisdom ward and wisdom logistics.
Continuously increase investment in R & D and build a technological moat
Since its establishment, Elon has focused on the main business, continuously increased core technological innovation and new product research and development, and continuously developed new products and technologies to maintain the international advanced level of the company's products and technologies. Since 2017, the expenditure on R & D has been increasing, from 20.16 million yuan in 2017 to 39.61 million yuan in 2021, with a compound growth rate of 19.19%. By 2021, the company has obtained a total of 7 invention patents, 32 utility model patents and 32 software copyrights. The company's R & D team has developed and verified an "integrated streamlined pharmacy automation system" with an average daily prescription handling capacity of more than 6000. This technology can realize the integrated real-time management of drugs in the whole hospital. after receiving the prescription information, the system will intelligently dispatch the equipment, realize the three-dimensional prescription scheduling of multi-layer drugs in different pharmacies, and use the minimum time algorithm to calculate the shortest path of drug acquisition. through the visual recognition technology to check and complete the intelligent drug delivery process, the whole process does not need human participation, is the first in the industry, and has entered the stage of industrialization.
Investment suggestion
As a model of China's new intelligent medical enterprises, Elon Technology has strong strength and is optimistic about its future development under the upgrading tide of pharmacy automation. We estimate that the company's revenue in 2022-2024 is RMB 5.5 million, an increase of 42.3%, 36.1%, 36.5%, respectively, and its net profit is 1.82.4 million yuan, 35.0%, 35.7%, 35.5%, respectively, and the corresponding valuation is 22X/17X/12X. Coverage for the first time, giving a "buy" investment rating.
Risk hint
Market development is not as expected risk; accounts receivable management risk; gross profit margin fluctuation risk; COVID-19 epidemic impact risk.