Event
The company disclosed its 2022 semi-annual report that its operating income in the first half of the year was 166 million yuan, an increase of 27.23% over the same period last year, and its net profit was 30.2125 million yuan, an increase of 62.32% over the same period last year.
Analysis and comment
The revenue side is advancing steadily and the profit side is exceeding expectations.
The revenue side grew by 27.23% year-on-year, in line with our expectations. Among them, Q2 revenue in a single quarter was 123 million yuan, an increase of 35.76% over the same period last year. In the first half of the year, centering on the established development strategy and epidemic prevention and control requirements, the company gave full play to the core competitiveness accumulated in the field of intelligent medical materials management, and completed the company's economic work targets for the first half of the year in marketing, R & D and other sectors on schedule.
The profit end increased by 62.32% over the same period last year, exceeding our expectations. Q2 in a single quarter was 31 million yuan, an increase of 140.65% over the same period last year. The main reason is the cost savings under the epidemic, with sales expenses and management expenses reduced by 12.93% and 17.57% respectively compared with the same period last year.
There are seasonal factors in the industry, contract liabilities are increasing rapidly, and revenue is expected in the second half of the year.
The end users of the company's products are mainly medical service institutions at all levels. Affected by the budget and final accounting cycle, holidays, the opening time of the new hospital, settlement habits and other factors, the company's customers usually start to implement the procurement plan from the second quarter of each year. The contract debt of 2022H1 was 147 million yuan, an increase of 187.14% over the same period last year and an increase of 43 million yuan compared with 2022Q1. It is mainly due to the increase in hand-on-hand orders, resulting in an increase in contract advances received in the current period. Taking into account the production cycle and delivery acceptance, the company's main business income is mainly concentrated in the second half of the year, revenue is worth looking forward to.
With the improvement of the prosperity of the industry, the competitiveness of the company has been improved, and the employee equity incentive plan is advancing steadily.
Domestic epidemic prevention and control has entered a new normal, the domestic economy is seeking progress in stability, the demand for intelligent system construction brought about by new medical infrastructure is increasing, and the prosperity of the industry continues to improve. Centering on the purpose of "beautiful hospital construction", the company invests to set up a beautiful hospital construction innovation research center, and constantly expands the product line and application scene. Continuously enhance the core competitiveness of enterprises through scientific and technological innovation of independent intellectual property rights. By the end of the semi-annual report, the company has applied for 853 patents and obtained 399 patents.
In terms of employee incentives, based on the confidence in future development and the recognition of company value, the company establishes and improves the company's long-term incentive mechanism, fully arouses the enthusiasm of employees, and effectively combines the interests of shareholders, the company's interests and employees' personal interests, so as to promote the healthy and sustainable development of the company. On April 30, 2022, the company issued Elon Technology's announcement on the company's share buyback plan through centralized bidding, which will be used for employee stock ownership plans or equity incentives.
As of July 31, 2022, the company had repurchased 416121 shares.
Investment suggestion
With the continuous improvement of the prosperity of the industry, Elon Technology, as a model of China's new intelligent medical enterprises, fully enjoys the development dividend of the industry. We maintain our previous forecast that we expect the company's revenue for 2022 to 2024 to be 5.5 million yuan respectively, an increase of 42.3%, 36.1%, 36.5%, and a year-on-year increase of 35.0%, 35.7%, 35.5%, respectively, and a corresponding valuation of 24X/18X/13X. We are optimistic about the long-term development of the company in the future and maintain "buying"
Rating.
Risk hint
Market development is not as expected risk; accounts receivable management risk; gross profit margin fluctuation risk; COVID-19 epidemic impact risk.
