Main points of investment:
Competition in the industry has intensified, and the income of the financial industry has fallen sharply. The company announced its annual report that its revenue was 503 million, down 7.25% from the same period last year, and its net profit was 32.4 million yuan, down 36.02% from the same period last year. The dividend per 10 shares was 0.21 yuan (including tax), mainly due to a sharp decline in income from the financial industry. Of these, health services contributed revenue of 143 million, up 29.47% from the same period last year, gross profit margin 53.47%, and intelligent converged cloud services contributed revenue of 360 million, down 16.65% from the same period last year, with a gross profit margin of 23.15%. The forecast profit of 2017Q1 ranges from 2.69 million yuan to 3.93 million yuan, down 5% Mel 35% from the same period last year, mainly due to the decline in main income and the increase in provision for bad debts of accounts receivable.
Clinical medical information and medical big data will be the key development direction of the company in the future. The company is mainly engaged in clinical medical information, the company's product structure classification was adjusted in 2016, mainly divided into: intelligent integration of cloud services and health services. Intelligent converged cloud services mainly rely on intelligent converged cloud platform and big data cloud center services to provide all-round intelligent converged solutions and services for key industry customers in Internet + era. Health data service is mainly based on clinical information subdivision products and health big data platform to provide customers with standard and efficient medical information software products and services.
Cash buys the remaining 49% stake in Shanghai Mijian. On December 8, 2016, the company acquired the remaining 49% stake in Shanghai Mijian with 202 million in cash (performance commitment: 2016UniGram 2018 net profit of not less than 23.27 million / 30.7 million / 40.56 million, actual performance of 21.13 million in 2016), rapid expansion of clinical information system and medical big data. At present, the clinical information products owned by the company and Shanghai Mijian include intensive care (ICU), emergency management, nephrology (hemodialysis), surgical anesthesia, nursing resource planning, mobile clinical care and other major products, and will continue to expand to new clinical products and medical insurance control fee management system in the future.
Medical informatization has entered the peak period of CIS construction, and the demand for clinical medical management information solutions is increasing.
According to IDC statistics, the market size of clinical information solutions in China was about 2.064 billion yuan in 2014, reached 2.448 billion yuan in 2015, and is expected to grow to 5.217 billion yuan in 2020, with a compound annual growth rate of 16.71 percent. In the field of clinical information products, the company is in a leading position in the industry, which covers the main clinical business departments of hospitals, such as hemodialysis, nursing, emergency, hand anesthesia, intensive care and so on. at the same time, the product function extends from business to quality management and medical safety. In 2016, famous top three customers such as Shanghai Changhai Hospital, China-Japan Friendship Hospital, Jiangsu Provincial people's Hospital and Chaoyang Hospital were added.
"Rongke 3.0" is fully launched. 2017 is the first year for the company to enter the stage of "Rongke 3.0". In the future, along with the company's established strategy, we will continue to move forward in the direction of "data cloud doctor, angel of health", enrich the categories of clinical information products, build a data platform, and intelligently integrate cloud, focusing on products in the three core areas of people's livelihood, government affairs and industry.
Set up a health data industry fund, forward-looking layout, and actively look for collaborative targets. In 2016, the company introduced Beijing financing innovation investment and other social capital to set up a health data industry fund to make a forward-looking layout around the field of Great Health and big data. So far, it has successfully invested in four projects. In 2017, the company will continue to seek cooperative targets at home and abroad to improve the industrial layout.
Profit forecast and investment advice. In the context of the rapid development of clinical medicine, the company's business is expected to break through the northeast (currently about 82.47% of revenue comes from the northeast) and usher in growth in other regions. At the same time, the acquisition of the remaining stake in Shanghai Mijian will significantly increase the company's performance in 2017, and we estimate that the company's EPS from 2017 to 2019 will be 0.17 soybean 0.21 0.26 yuan. With reference to comparable companies in the same industry, the company is given a dynamic PE88 times in 2017, with a 6-month target price of 15 yuan, covering for the first time to give an "overweight" rating.
Risk hint. Business expansion is lower than expected risk, integration effect is not obvious, systemic risk.