Main points of the report
Event description
The company released its semi-annual report on August 26. In the first half of 2016, revenue reached 145 million yuan, an increase of 79.59 percent over the same period last year; net profit of 31.3386 million yuan, an increase of 170.41 percent over the same period last year; EPS0.07 yuan; and non-net profit of 30.2388 million yuan, an increase of 162.89 percent over the same period last year.
Event comment
With the rapid growth of performance, there are bright spots in electric power and medical treatment. The revenue of the original main power fault recording device reached 51.6723 million yuan, an increase of 20.63% over the same period last year, and the gross profit margin increased by 3.32 percentage points to 62.87%. Based on the good bid-winning performance of the national network and southern power grid, based on the follow-up investment of the power grid and the further consolidation of the company's competitiveness, we expect the power sector business to maintain steady growth. The revenue of the medical and health business reached 63.0886 million yuan, an increase of 439.97% over the same period last year, mainly due to the combination of new Shixuan technology. With the promotion of regional medical business, the volume of IVD and good synergy, we believe that the company's medical and health business has great potential.
A breakthrough has been made in regional medical care, and the volume of IVD has been increased rapidly. The medical and health business has a good momentum. Shixuan Technology achieved revenue of 46.6673 million yuan in the first half of the year, while IVD and other medical and health businesses achieved revenue of 11.45 million yuan, an increase of 43.42% over the same period last year. The Chongqing region is progressing smoothly, and Guizhou and Northeast China have become new growth points. Regional medical treatment has made breakthroughs in many regions, and its "1x 6" business model, that is, through the establishment of intelligent medical cloud platform, the integration of regional health resources, and the development of six major business systems, the formation of key discipline construction, gene testing center, regional imaging and ECG center, regional temporary inspection center, intelligent pension, medical supply integration of the regional medical pattern, unique innovation and great potential. We believe that with the acceleration of medical business in Shixuan region and the release of in vitro diagnostic reagents and the coordination of the two, the company's medical and health business has great potential for development.
Excellent performance of power grid business, orders to ensure growth. The power grid business performed well in the national grid UHV project, winning the bid for Jinbei-Nanjing ±800kV UHVDC converter station and other projects; the time synchronization system won the full share of Guangzhou, Guizhou and Shenzhen in the 2016 communication equipment and material framework bidding project of the Southern Power Grid; in addition, the fault recording performed prominently in the Southern Power Grid. At the same time, the company actively distributes the energy Internet, and Suihua Energy introduces the Academician Li Liqiao's team, which has carried out research in the field of energy Internet operation control and system integration for many years, and has profound accumulation and core advantages in new energy planning and design, which will help the company to promote its energy Internet business rapidly. As of June 30, the newly signed contract amount of the company was 168 million yuan, an increase of 53.11% over the same period last year, and the outstanding contract amount was 240 million yuan, which better ensured the rapid growth of the follow-up performance.
Set up investment companies to speed up the layout of a new starting point. The company invested 50 million yuan to set up Zhongyuanhui Industrial Investment Company, which is expected to expand the company's business areas and investment channels with the help of professional teams. In recent years, the company has carried out a series of layouts around the medical industry, and has made smooth progress in terms of strategy and landing. We believe that the establishment of the company investment company or ushered in a new starting point in the layout of related business, the development prospect is worth looking forward to.
The medical ecology accelerates, maintaining the "buy" rating. The company has excellent texture, beautiful traditional business performance, regional medical information technology has made a breakthrough, its "1-6" business model has great potential, the field of IVD is growing rapidly, and the medical and health business is cooperative. It is estimated that the EPS in 2016, 2017 and 2018 will be 0.25,0.37 and 0.46 yuan respectively. We are optimistic about the medical sector business that the company is firmly promoting and maintain its "buy" rating.
Risk hint: new business is not as good as expected
