Event
The company publishes its semi-annual report 2022
On August 8, 2022, Elon Technology released its semi-annual report of 2022. In the first half of 2022, the company achieved revenue of 166 million, an increase of 27.23% over the same period last year, and a net profit of 30.21 million, an increase of 62.32% over the same period last year, deducting 25.96 million of non-return net profit, an increase of 62.32% compared with the same period last year.
Brief comment
Performance is in line with expectations, and new medical infrastructure drives high performance growth.
The company is the leader in the domestic intelligent management of medical materials, covering three parts: wisdom pharmacy, wisdom ward and wisdom logistics. In the first half of 2022, the company achieved revenue of 166 million (+ 27.23%), net profit of 30.21 million (+ 62.32%), and non-return net profit of 25.96 million (+ 62.32%). Q2 realized revenue of 123 million (+ 35.76%) in a single quarter, net profit of 30.61 million (+ 140.65%), and non-return net profit of 27.81 million (+ 169.71%). By the end of the second quarter, the company's contract liabilities were 147 million, an increase of 187.14% over the same period last year, which is expected to be mainly due to strong order demand from new medical infrastructure.
The integrated intelligent allocation library (referred to as "integrated warehouse and distribution") developed by the medical and hazardous waste treatment company can connect the automated warehouse and the drug distribution system to form a circulation closed loop through carrying equipment. realize the automation of the whole process of tonics, enhance the competitiveness of products and increase the sales amount of a single project. After the launch of the "integration of treasury and development" program, the market response was good, and the scale of single orders increased significantly. At the same time, the company lays out the "automatic treatment system of medical hazardous waste", through the brand-new friction heat treatment technology, to realize the safe, efficient and environmental protection treatment of medical waste in the hospital, and to realize the safe treatment of medical hazardous waste in the hospital. it is expected to further expand the company's business growth space.
Gross profit margin fluctuated slightly and operating cash flow increased significantly
In the first half of 2022, the company's gross profit margin was 52.07%, a decrease of 6.22 percentage points, which is expected to be caused by changes in product structure, higher freight costs, project implementation costs and other reasons. During the period, the expense rate was 36.15%, down 12.88 percentage points, of which the sales expense rate was 14.19%, down 6.54%, the management expense rate was 10.13%, down 5.51%, the R & D expense rate was 11.30%, down 2.32%, and the financial expense rate was 0.53%. Increased 1.49 percentage points, net interest rate was 18.30%, increased 6.72 percentage points. In the first half of the year, the company's operating cash flow was 39.7 million yuan, an increase of 266.10% over the same period last year, which is expected to be mainly due to the increase in the scale of operating income and the increase in rebates for sales projects in the fourth quarter of last year.
The company's buyback is used for equity incentives to demonstrate confidence in future development.
In April 2022, the company announced that it intends to use its own funds to buy back the company's shares (the repurchase amount is between 61.76 million and 124 million yuan), and all the repurchased shares will be used for employee stock ownership plans or equity incentives. As of July 31, 2022, the company had repurchased 416121 shares, accounting for 0.539% of the company's total share capital, with a total repurchase fund of about 13.49 million yuan. The company's buyback plan shows confidence in future development. If equity incentives or employee stock ownership plans are launched in the future, it is expected to further enhance the enthusiasm of employees and be conducive to the long-term development of the company.
In the short term, the new medical infrastructure is expected to bring incremental demand for the construction of hospital intelligent systems, and the prosperity of the industry is expected to continue to improve; in the medium to long term, the company continues to increase its R & D layout and launch upgraded products, and the "integration of warehouse and development" project is expected to further enhance the company's competitiveness and project unit price. Taking into account the prosperity of the new medical infrastructure, the company has plenty of orders on hand, and we slightly raise our profit forecast. It is estimated that the company's net profit from 2022 to 2024 will be 1.28,1.68 and 217 million yuan respectively, with growth rates of 34.0%, 31.5% and 28.6% respectively. Based on the closing price on August 8, 2022 (39.72 yuan), the PE from 2022 to 2024 will be 24, 18 and 14 times, respectively. Maintain the buy rating.
Risk hint
Epidemic uncertainty risk; market competition aggravating risk; industry policy change.
