Performance

On October 29, 2023, the company released its third quarterly report of 2023. 23Q1-Q3 achieved revenue of 803 million, an increase of 21.71% over the same period last year, of which Q3 achieved revenue of 285 million in 23 years, an increase of 19.95% over the same period last year. In 23 years, Q1-Q3 achieved a net profit of 114 million, a decrease of 8.69% compared with the same period last year, of which Q3 achieved a net profit of 29 million in 23 years, down 34.03% from the same period last year. In 23 years, Q1-Q3 realized deduction of non-return net profit of 102 million, a decrease of 11.71% compared with the same period last year, of which 23-year Q3 realized deduction of non-return net profit of 25 million, a decrease of 40.26% over the same period last year.

In 23 years, Q1-Q3 achieved a gross profit margin of 49.58%, a year-on-year decline of 9.83pct, of which 23-year Q3 achieved a gross profit margin of 47.29%, a year-on-year decline of 11.39%. In 23 years, Q1-Q3 achieved a net cash outflow of operating activities of 99 million, and the net outflow decreased by 53.28%.

In 23, the sales expense rate of Q1-Q3 Company was 13.07%, down 2.10pct from the same period last year; the management expense rate was 10.50%, down 2.44pct from the same period last year; and the R & D expense rate was 10.19%, down 0.98pct from the same period last year. The 23-year Q3 sales expense rate was 13.67%, down 0.90 pct from the same period last year; the management expense rate was 9.65%, down 2.64 pct from the same period last year; and the R & D expense rate was 11.30%, down 1.74pct from the same period last year.

Main points of investment

The field of wisdom and people's livelihood is in the forefront, and the industry barrier is expected to remain strong. The company is a wise people's livelihood service provider, backed by the Chinese Academy of things, and the market covers 29 provinces, 228 cities and 160000 medical and medical institutions, providing services for 700 million members of the public. National Healthcare Security Administration, Ministry of Human Resources and Social Security Industry Informatization Strategic partner It has undertaken a series of major projects, such as the national remote medical settlement platform, the national social security public service platform, the national unified software of the employment management information system, and the Jinmin project application support platform. the market share in the field of people's livelihood information ranks in the forefront of the industry. At present, the company supports the operation and maintenance of the medical insurance information platform in 23 provinces across the country, and continues to plough in more than 100 cities and more than 200,000 medical insurance institutions across the country. at present, the market in the medical and health industry has covered more than 2800 hospitals across the country. the Renshe market covers 21 provinces and undertakes 12 livelihood information projects such as the National Unified Software of the Ministry of Human Resources and Social Affairs Employment Management Information system. We believe that the company has industry-leading project acceptance rate and urban coverage, has been deeply cultivated in the field of digital government affairs such as health insurance and people's society for many years, and is rich in customer resources. with the increase in the number of customers and government organizations of the company's health insurance services, industry leadership and project delivery capacity are expected to be further improved, and will continue to have strong industry resource barriers.

In August 2023, the company passed the qualification examination of Shenzhen data Exchange and became a data merchant of Shenzhen data Exchange; in September, the company and its wholly-owned subsidiary Guizhou Jiuyuan Yinhai passed the qualification examination of Guiyang big data Exchange and became a data merchant of Guiyang big data Exchange, responsible for data governance, data product development and data operation services. The company is a state-owned listed enterprise focusing on wisdom and people's livelihood, focusing on health care, digital government affairs and smart city, providing "escort" for people's livelihood data products. Around public data elements, deeply integrate industry advantages with intelligent technology, participate in the development of data element standards, provide data governance and data product services, and explore data operation. At present, the company is actively carrying out innovative R & D and landing practice of data products, data capabilities and data services in the field of people's livelihood, enabling in-depth mining of the value of data elements in medical insurance, digital government affairs and smart cities. to promote the market-oriented and high-quality development of data elements. We believe that in the future, with the promotion of relevant policies on the liberalization of public data, the company is expected to open up a new growth space in digital government affairs and health insurance data elements, relying on high coverage and excellent projects in medical insurance and other information fields. performance increment is expected.

Systematic technology fusion support capability, AI, cloud computing and other enabling health insurance intelligence service companies carry out cloud computing and cloud native, low code, big data, artificial intelligence, mid-Taiwan, micro-services, data elements, large language model, block chain, information security, Xinchuang and other aspects of basic technology research and achieve technological breakthroughs, effectively support the industry product research and implementation, and in the field of digital government, health insurance applications It has formed more mature domestic industry application middleware products and Yinhai trusted integration client products, including Ta+3 component integrated platform, low code development platform, Yinhai Cloud platform (PaaS), application support platform, MDLife mobile application development platform, Horizon big data platform, Huanzhi artificial intelligence platform and so on.

On September 22, 2023, Liupanshui "Medical Insurance Integrated convenient Medical treatment platform" was launched in Liupanshui City, Guizhou Province, marking Liupanshui became the first city in Guizhou Province to provide medical treatment without feeling. Up to now, more than 800 medical insurance facial scanning terminals have been installed in 326 medical institutions and health insurance service points, and 182300 people have successfully settled facial scanning. After Liupanshui City medical insurance integrated convenience + no sense of medical treatment online, the problems such as long queues for medical treatment have been effectively alleviated, the average number of queues has been reduced by 50%, the average queue time has been reduced by about 45 minutes, and the settlement rate of medical insurance electronic vouchers in the city is 60.46%, ranking first in Guizhou Province. We believe that the company has the ability to use AI and other technologies to continuously create a new model for the integration of health insurance for the convenience of the people and people without feeling for medical treatment, help the health insurance department to build a new digital health insurance governance and new space, and provide people with intelligent health insurance new services and new experiences.

Profit forecast and valuation

We estimate that the company's operating income from 2023 to 2025 will be RMB 1.536 million, respectively, with a year-on-year growth rate of 19.80%, 17.72%, 17.77%, and 2.42%, respectively, with an increase of 31.25%, 39.68%, 11.30% and 28.93 times, respectively, to maintain the "overweight" rating.

Risk hint

The competition in the industry intensifies, the business development falls short of expectations, the products and services provided can not meet the policy requirements in time, and the policy of data elements falls short of expectations.