Event: the company plans to change its name to "Guoxin Health Service Group Co., Ltd." and the securities abbreviation will be changed to "Guoxin Health". At the same time, the board of directors will be re-elected in advance, and a number of senior executives of China Guoxin will join. The company released its 2017 results KuaiBao, operating income of 184 million yuan, a year-on-year decrease of 15.15%, net profit of 16.67 million yuan, a decrease of 40.49% over the same period last year. The loss in the first quarter of 2018 is expected to be 55 million-65 million yuan, compared with a loss of 38.84 million yuan before restructuring and 31.99 million yuan after restructuring in the same period last year.
Renamed Guoxin Health, welcome a new starting point. Since the actual controller of the company was changed to the State-owned assets Supervision and Administration Commission of the State Council on November 9, 2017, the pace of reverse mixed reform of central enterprises has been accelerating. At the beginning of March this year, China Venture Capital Fund agreed to transfer the remaining 25% of the company's controlling shareholder, China Haiheng, to 100% of the shares. After completing the internal management reform, the company finally took a solid step-- to change its name to "Guoxin Health". At the same time, three senior executives of China Guoxin were stationed in the list of the new board of directors nominated by the company. We believe that the transformation of the company from a private enterprise to a central enterprise has been completely completed, and the business is expected to enter a new stage of development. In the future, the company will concentrate more resources on central enterprises, gradually speed up the realization of China State-owned assets Supervision and Administration Commission's commitment to promote the "three medical linkage" with the company as the starting point, and establish the company's leading position in the field of medical and health security.
Health security service business is actively promoted, and the performance is expected to usher in an inflection point. The decline in the company's net profit in 2017 was mainly due to the decline in the bidding agency business of drugs and medical devices and the increase in the provision for impairment of intangible assets. The company's loss in the first quarter of 2018 was mainly due to the continuous investment of health care services in the market, labor, venues and the company's precise layoffs of about 400 people. In the short term, the company's business is affected by National Healthcare Security Administration, which is newly established by the institutional reform of the State Council, and the progress of related business slows down, but in the long run, with the establishment of the Medical Insurance Bureau, the payer has the absolute say, the health insurance fund will enter the era of fine management, and the follow-up health insurance payment standards and DRGs are expected to be rolled out nationwide, and the company's business is expected to usher in historic opportunities.
Maintain the "highly recommended-An A" rating: the net profit in 2017-19 is expected to be RMB 149,850 million, the charging model of the company's health insurance meticulous management cloud platform is expected to be launched in 2018, and the health security service business will achieve overall growth. maintain the "highly recommended-A" rating.
Risk tips: 1, the health security service business charging model falls short of expectations; 2, the promotion speed of commercial insurance business is slow, and the market competition intensifies.
