Performance summary: in the first three quarters of 2020, the company achieved a total operating income of 5.58 billion yuan, down 2.9% from the same period last year, and a net profit of 620 million yuan, down 18.4% from the same period last year.
Affected by the release of goodwill impairment, the company's net profit is under short-term pressure. 1) Revenue: in the single quarter of 2020Q3, the company achieved operating income of 1.93 billion yuan, down 10% from the same period last year. The impact of the epidemic on the overall progress of the project is still warm, resulting in a delay in the recognition of overall revenue, and the revenue performance in the first three quarters is relatively poor. 2) in terms of profits:
2020Q3 achieved a net profit of 210 million yuan in the single quarter, down 41.7% from the same period last year. The net profit was affected by the impairment of the company's goodwill, showing a short-term fluctuation. In the first three quarters of 2020, the company's gross profit margin was 33.9%, down 1.1 ppm from a year earlier, and net profit was 10.8%, down 2.1pp from a year earlier. 3) the sales expense rate of 2020Q3 is 4.9%, an increase of 0.6 ppm over the same period last year; the management expense rate is 7.4%, and the R & D expense rate is 10.1%. During the reporting period, the change of the company management and R & D expense rate is relatively small compared with the same period last year.
The high prosperity in the medical sector continues to provide a driving force for the company's performance growth. Benefiting from the level testing of electronic medical records, the construction of medical insurance IT and the catalysis of epidemic factors on hospital internal informatization and public health informatization, we expect the field of medical IT to be in a high state of prosperity. As of 2019, the company's service network in the medical field covers 31 provinces, cities and regions across the country, and the core brand Health Le has provided health management services for patients in more than 100 third-class hospitals across the country. no, no, no. In the first three quarters of 2020, the company won 9 10 million orders in the field of medical information. Under the catalysis of the post-epidemic era, the prosperity of the medical field is expected to continue to rise, and the company's medical IT business may continue to grow.
In-depth layout of cloud computing, big data, artificial intelligence and other cutting-edge areas, focusing on strengthening the expansion of the Xinchuang market.
On October 14, Beijing Donghua Xinchuang Technology, a wholly owned subsidiary of the company, plans to invest RMB 300 million to set up Liaoning Donghua Xinchuang Technology Co., Ltd., accounting for 100% of the registered capital. Give full play to its comprehensive strength in informatization and competitive advantages in government, finance, energy, power and other industries, fully participate in the development of Xinchuang project in Liaoning Province, enhance the company's overall competitiveness and enhance the company's profitability.
Profit forecast and investment advice. Considering the poor performance of government, communications and other businesses affected by the epidemic, we downgrade the company's profit forecast and estimate that the company's EPS will be 0.18,0.20,0.27 yuan respectively from 2020 to 2022. The company is a leader in system integration and fully benefits from the high prosperity of the medical IT industry and the wave of localization of financial IT, so we are bullish for a long time and expect that the future return net profit will return to rapid growth after short-term fluctuations and maintain the "hold" rating.
Risk tips: the progress of cooperation with Tencent and Huawei is lower than expected; the risk of impairment of goodwill; the demand of medical customers is not up to expectation; the substitution of financial localization is not as expected.
