A two-pronged approach of endogenous deepening and epitaxial mergers and acquisitions to deepen the layout of the core business. In terms of smart medicine and big health business, the company set up Yanhua Medical Research Institute, set up a professional R & D team to create a new generation of business production system, and strategically invested in Beijing Taihekang Medical Biotechnology Co., Ltd., laying out in vitro diagnosis business. further extend the medical and health industry chain. In terms of green smart city business, the company strengthens cost control and focuses on high-quality projects with high gross profit margin and long-term sustainable operation. In 2019, the company's overall gross profit margin was 18.47%, an increase of 6.54% over the same period last year; the gross profit margin of the smart medical and health sector was 31.18%, an increase of 7.23% over the same period last year; and the gross profit margin of the green smart city business was 10.35%, an increase of 7.80% over the same period last year.
Holding shares to become a medical star, the establishment of Yanhua Medical, intelligent medical field performance can be expected. The company acquired Chengdian Medical Star in 2015, holding a stake of 75.24%, and thickening the performance of smart health care. In 2019, the revenue of Chengdian Medical Star reached 168 million yuan, an increase of 62.8 percent over the same period last year, and the net profit was 17.98 million yuan, a sharp increase of 124 percent over the same period last year. Cheng Dian Medical Star adopts PPP mode and SaaS mode to build cloud computing smart medical big data platform to realize the interconnection of population, medical care, pension and other information. With the great development of medical PPP and the growth of information demand, it is expected that Chengdian medical stars can maintain high growth performance.
At the same time, the company set up Yanhua Medical Research Institute and successively invested in software development such as "Regional Medical platform Software Development Project". Yanhua Intelligence has formed a "Yanhua Medical" business group with Group Medical Division, Chengdian Medical Star, Yanhua Medical Research Institute and Taihekang as the main force, forming a stable intelligent medical industry chain.
Pay attention to product innovation and strengthen the R & D team. The company and Academician Chen Runsheng of the Chinese Academy of Sciences jointly established the "Chengdu Academician Innovation Workstation" to lay out cutting-edge technology research. Take Chengdu Yanhua Western Health Medical Information Industry Research Institute Co., Ltd. as the main body, set up a professional R & D team. At the same time, the company is actively building a cloud service infrastructure platform, on this basis to build Yanhua Medical Cloud platform, and set up big data, cloud computing, Internet of things, artificial intelligence, robot group to carry out basic technology and fusion application research.
We are optimistic about the development of the company in the field of intelligent building and smart medicine, covering it for the first time and giving the company an "overweight" rating. It is estimated that the 20-22 year net profit of the company is 0.47 yuan / 67 million yuan, and the EPS is 0.07,0.08 yuan and 0.09 yuan respectively.
Risk hint: the risk that the performance does not meet expectations, systemic risk
