The overall layout of medical IT is growing rapidly.

The company actively arranges medical informatization, and through effective capital mergers and acquisitions, the company has become one of the most complete product suppliers of medical informatization in China, and occupies a certain position in critical informatization, telemedicine and other subdivided fields. In recent years, the company's performance has continued to grow at a high level, with the compound growth rate of revenue / return net profit in 2017-19 reaching 32% and 51% respectively. Under the catalysis of COVID-19 's epidemic this year, 2020Q1/3 achieved a cumulative net profit of 18.1538 million yuan, an increase of 58% over the same period last year. As the medical IT business is on the right track, the company is expected to win considerable orders, and the profit prospect is expected in the future.

The company is expected to continue to benefit from the continuous promotion of industry policies.

Driven by policies such as interconnection, DRGs, upgrading of electronic medical records and the catalysis of COVID-19 's epidemic situation, the company's medical information business is expected to accelerate its development. Smart city policy continues to promote, from the national level to the local level, the company's smart city-related business is expected to continue to develop steadily. The company's two major businesses are continuously supported by industry policies, and we believe that in the future, the company is expected to continue to improve its smart medical business, continue to promote the construction of smart cities, and constantly enhance the company's technological strength. in the future, it is expected to fully benefit from the tide of intelligence in all sectors of society.

Investment suggestion

We estimate that the company's operating income from 2020 to 2022 will be 850 million, 1 billion and 1.19 billion respectively, and the net profit realized will be 60 million, 80 million and 100 million respectively, and the corresponding PE will be 82 times, 59 times and 43 times, respectively. Considering that the company's smart health care business is expected to continue to accelerate volume, it will be given an "overweight" rating for the first time.

Risk hint

The implementation of the policy is not as strong as expected, the financial support is not as strong as expected, and the emergence of new technologies may have an impact on the existing market.