The company will achieve a turnaround in 2021 and achieve the management goal of reducing cost and increasing efficiency. Looking forward to 2022, the company will focus on the industry trend, adhere to the "32nd" business structure, promote strategic transformation, seize the opportunities of the two emerging track markets of health management and smart city, and further management improvement is expected to be achieved. Maintain the "overweight" rating.
Matters: the company issues the annual report of 2021 and the quarterly report of 2022. In 2021, the company achieved revenue of 3.513 billion yuan, an increase of 16.78% over the same period last year, a net profit of 69.24 million yuan, an increase of 105.36% over the same period last year, and a non-net profit of 8.51 million yuan, an increase of 100.62%. In the first quarter of 2022, the company achieved revenue of 817 million yuan, down 1.89% from the same period last year; net profit from its mother was 13.38 million yuan, up 214.11% from the same period last year; and 170000 yuan was deducted from non-net profit, up 102.57% from the same period last year.
The performance turned from deficit to profit in 2021, and the goal of "expanding scale, increasing income, reducing cost and improving efficiency" was achieved. From a quarterly point of view, the company's 2021Q1-Q4 achieved revenue of 8.32 million yuan, with a year-on-year change of + 183.60%, 83.58%, 7.90%, 28.19%, respectively. According to different industries, in 2021, the revenue of smart medical and health care was 1.57 billion yuan, an increase of 5.42% over the same period last year, and the gross profit margin increased to 41.63%; the revenue of smart government was 1.531 billion yuan, an increase of 24.63% over the same period last year, and the gross profit margin increased to 22.01%; and the revenue of Internet services was 411 million yuan, an increase of 41.76% over the same period last year, and the gross profit margin increased to 45.29%. Benefiting from fine project management and efficient delivery, the company's gross profit margin increased significantly to 33.49% 17.64pcts. At the same time, the company insists on both the scale and quality of signing, with a gross profit margin of 49% in 2021, an increase in 6pcts compared with the same period last year. On the expense side, the company's sales expenses decreased by 1.78% to 147 million yuan compared with the same period last year, with an expense rate of 4.18%; management expenses decreased by 3.69% to 428 million yuan, with an expense rate of 12.19%; and R & D expenses decreased by 26.40% to 472 million yuan, with an expense rate of 13.43%.
The continuous strategy of Bull Health has been upgraded, and the public cloud has been spread out. In the aspect of health management, Bull Health forms the insurance science and technology ability with Bull partner (An end) and Bull member Fu (B side) as the core, and improves the health management ability with Bull Health (C side) and Bull Doctor (D side) as the core. Iteration around the 2.0 strategy, Bull Health APP 2.0 Health Passport version will be launched, 1.1366 million new registered users will be added in 2021, Bull Xiaojing pension terminal will be released, and an one-stop smart pension solution will be launched. Around the iteration of the 3.0 strategy, the company explores the business model of chronic disease management. The Internet hospital has obtained the practice license of medical institutions, completed the launch of Mini Program, and will form a closed loop of medical service of "consultation, consultation, prescription circulation and drug purchase" in the future. As for smart cities, as of December 2021, the number of cities contracted by citizens has reached 27, covering a population of more than 150 million and 123 million registered users. In the future, citizen cloud will also reflect the total entrance effect of urban services, and explore in the areas of life services, social governance, financial value-added and so on.
The traditional business of smart health care and smart medical care has continued to develop, and the advantages and synergy of smart health insurance card positions have emerged.
In 2021, the company completed the phased acceptance of major projects such as the "three Medical Linkage Network" in Hainan and the data Center of Shanghai Health Commission, and assisted customers in Nanjing, Ningbo, Dongying and Wuzhong in Suzhou to provide information services to nearly 2000 medical institutions of all levels through interconnection level 5 B evaluation. In terms of smart health insurance, the company helps to land provincial health insurance platforms such as Shanghai, Zhejiang, Guangdong, Guangxi, Anhui and Chongqing, and provides services to DIP business projects in 15 cities, including Guangzhou, Shanghai, Weifang and Yingkou. DIP market share is in the leading position. Cooperate with China Life Insurance Company Limited to provide technical services such as intelligent supervision and payment reform for health insurance management departments in relevant prefectures and cities, and complete medical insurance flight inspection in 28 prefectures and cities in 15 provinces, including Hainan, Guangxi, Sichuan, Guizhou, and Xinjiang Corps.
Risk factors: Bull health promotion is not as expected; the company's technology research and development is not as expected; industry competition is intensified.
Investment suggestion: combined with the data of the 2021 annual report, we lowered our revenue forecast for 2022-2023 to 3.996 billion yuan 4.514 billion yuan (the original forecast was 6.1.36 billion yuan 7.748 billion yuan), and increased the 2024 income forecast by 5.011 billion yuan. With reference to Weining Health, Venture Huikang, Jiahe Meikang and Tuowei Information, the average PS valuation level in 2022 is 3 times, and the company's target market capitalization is 12 billion yuan (corresponding to 3 times PS in 2022), corresponding to the target price of 10 yuan, maintaining the "overweight" rating.
