Main points of investment
Event: the company released its 2016 semi-annual report. In the first half of the year, the company's operating income was 220 million yuan, up 11.6% from the same period last year, operating profit was 11.375 million yuan, down 26.4% from the same period last year, and its net profit was 13.585 million yuan, down 23.2% from the same period last year, deducting 13.54 million yuan from non-home net profit, down 8.7% from the same period last year. In the second quarter, the operating income was 130 million yuan, up 8.1% from the same period last year, and the net profit was 9.454 million yuan, down 23.2% from the same period last year. Taking into account the seasonal factors of the industry, the increase in R & D costs during the transition period and the high non-recurrent profits and losses in the same period last year, the company's performance is basically in line with expectations.
Economic depression, integrated business pressure, the company's product structure adjustment. The company's traditional integration business is mainly concentrated in the northeast, especially in Liaoning Province. The economy of Northeast China is sluggish and the population outflow is serious, which affects the release of integrated business orders to a certain extent. Affected by the general environment, the company's financial IT outsourced services fell 54.2% compared with the same period last year, and the gross profit margin of the data center third-party service business was also affected, falling 3.3%. As a result, the company is also actively promoting the layout of new business areas and increasing investment in the smart medical sector. The company's industry information solution benefited from the increase in business revenue in the smart medical sector and the consolidation of Mijian information, with a year-on-year increase of 14.1% and a gross profit margin increase of 2.9 percentage points.
The transformation of smart health care continues to advance, and the prospect is promising. The company continues to increase its R & D investment in the smart medical sector, with R & D investment of 16.601 million yuan in the reporting period, an increase of 37.3% over the same period last year. The company focuses on clinical information system (CIS) product research and development, ICU, hand anaesthesia, emergency, nursing, hemodialysis and other CIS products are further mature, and actively layout AI+ medical care, set up expert think tanks, and constantly improve the threshold of the company's core competitiveness in the field of intelligent medicine. The major asset restructuring of the company's acquisition of the remaining 49% stake in Mijian Information is also in progress in an orderly manner.
With the continuous prosperity of the medical information industry, the company's layout diagnosis information system and "intelligent fusion cloud" have the advantage of card position. The government continues to increase support for the medical and health cause and the medical information industry. At present, the basic layout of the medical information system of provincial and municipal hospitals is relatively perfect, HIS, PACS and other systems are in place, and the information demand is upgraded. The diagnostic information system of sub-departments is currently being infiltrated in tertiary hospitals and forming a demonstration effect. Orders are expected to break out. In the first half of the year, the national policy on graded diagnosis and treatment and family doctors was issued to promote the popularization of information systems in grass-roots hospitals and health centers, and to stimulate the proposal and construction of collaborative diagnosis and treatment information systems based on cloud architecture. Mijian Information acquired by the company is a leader in CIS systems, with mature emergency, hand anesthesia and ICU CIS products, active layout of cloud-based data platform-level products, and simultaneous layout care and hemodialysis department CIS, forming a smart medical layout with complementary products and shared channels, with the advantage of card position, and performance is expected to break out.
Profit forecast and investment advice: taking into account the impact of the company's first-half performance on the whole year, the company's profit forecast is lowered accordingly. It is estimated that the EPS of the company from 2016 to 2018 will be 0.17,0.23 and 0.30 yuan respectively, and the compound growth rate of homed net profit in the next three years will be 26.8%. The company is currently in a period of transition, we are optimistic about the future layout of the company in smart health care, and maintain the "overweight" rating.
Risk tips: risks such as persistent market depression, product promotion or less than expected, market competition or aggravation, etc.