Introduction to this report:
The company's overall performance is in line with market expectations, revenue in a single quarter increased markedly, and the HDAI ecosystem integration strategy has been actively deployed to meet the medical information intelligence revolution. The products are rich and the research and practice are complementary, so I am optimistic about the company's long-term development space.
Key points of investment:
Maintain an increase in holdings rating and adjust the target price to 9.62 yuan (-4.26 yuan). Due to external factors, the signing of the company's new orders was delayed in 2022, and the company's performance growth rate slowed. The company's 2023-2025 EPS forecast was lowered to 0.19 (-0.09) /0.28 (-0.08) /0.37 (-0.08) yuan, given that 2023 PE was 50 times, the company's target price was lowered to 9.62 yuan, maintaining the increase in holdings rating.
The overall performance was in line with market expectations, and revenue increased significantly in a single quarter. The company's revenue growth rate improved in the first three quarters of 2023, achieving cumulative revenue of 1,157 billion yuan (YOY +1.61%), net profit of 91 million yuan (YOY -46.54%), and net profit of 85 million yuan (YOY -50.96%) after deduction of net profit from net income to mother (YOY -50.96%). Among them, 2023Q3 achieved revenue of 452 million yuan (YOY +26.34%), a new high in revenue for the third quarter of each year in the past five years, and the revenue growth rate continued to increase in a single quarter.
The decline in gross margin put pressure on performance in the short term. 2023Q3 strengthened cost-side control. The sales expense ratio decreased by 2.31% year on year, the management expense ratio decreased by 2.25%, and the overall period expenses decreased by 4.03%.
The company's net profit for 2023Q3 fell 2.94% year on year, mainly due to the company's gross margin falling 6.55% year on year and rising credit impairment losses in the third quarter. As the health informatization industry continues to recover, the company is expected to quickly recover its performance and return to a high growth rate.
The company actively lays out the HDAI ecosystem integration strategy to welcome the revolution in intelligent medical information. The next-generation platform HIS (Hi-HIS) has now achieved many practical results and successfully implemented and launched a large number of projects; based on many successful experiences, the company has now formed a complete set of systematic and replicable Hi-HIS customized development and efficient deployment mechanisms, which are promoted nationwide, and the volume of orders for new products is expected to further increase revenue growth.
Risk warning: Healthcare IT orders fall short of anticipated risk, and competition heightens risk.