Continuous policy catalysis to maintain the "buy" rating

The company is a domestic leader in medical information and digital government affairs, health insurance data elements are expected to open the growth space, we maintain the original profit forecast, it is estimated that the 2023-2025 net profit is 2.55,3.15,391 million yuan, EPS is 0.62,0.77,0.96 yuan per share, the current stock price corresponding to PE is 52.4,42.4,34.1 times. Maintain a "buy" rating.

Event: the company released its mid-2023 report

In the first half of 2023, the company achieved operating income of 519 million yuan, an increase of 22.70% over the same period last year, a net profit of 85 million yuan, an increase of 5.10% over the same period last year, and a net profit of 76 million yuan, an increase of 5.04% over the same period last year.

In the second quarter alone, the company achieved an operating income of 331 million yuan, an increase of 20.92% over the same period last year, and a net profit of 68 million yuan, an increase of 4.83% over the same period last year.

Steady growth in income and remarkable results in fee control

The company's revenue growth is mainly due to the rapid growth of the smart city and the digital government industry. In the first half of the year, the smart city and the digital government industry achieved business income of 260 million yuan, an increase of 47.88% over the same period last year. Among them, the revenue of software and operation and maintenance services in the digital government industry increased greatly, mainly due to the growth of business expansion in southwest, northeast, South China and central China. The operating income of the medical and health insurance industry reached 232 million yuan, an increase of 4.01% over the same period last year. In the first half of the year, the rate of the company decreased significantly, the rate of sales expenses decreased by 2.76 percentage points year-on-year to 12.74%, the rate of management expenses decreased by 2.34 percentage points to 10.97%, and the rate of R & D expenses decreased by 0.54 percentage points to 9.58%.

The first batch of data capabilities are listed on the Guangzhou Digital Exchange, and the growth prospects of medical insurance data elements Bright Company actively carries out capitalization, product-oriented and service-oriented innovation of medical insurance data elements. The company's "hospital disease diagnosis and treatment path knowledge base, medical expense analysis system" has become the data capability of the first batch of Guangzhou data Exchange.

According to the 2023 mid-term report, the company's medical and health industry market has covered 20 provinces and more than 2800 hospitals across the country, accumulating profound first-mover advantages, and in the future, the company will continue to expand data element scene services and accelerate the development and utilization of public data. it is expected to take advantage of the east wind of data factor policy to accelerate growth.

Risk hint: the policy landing is not as expected; the market competition is intensified; the company's technology research and development is less than expected risk.