Core views:
The 23-year results are in line with the medical IT industry's “strong expectations, weak reality” recovery, and we are waiting for further orders to be released. The company's revenue in '23 was 1.62 billion yuan, up 5.8% year on year, maintaining a relatively steady growth trend. On the profit side, the company's net profit to mother was 36.69 million yuan, a year-on-year decrease of 14.0%, and the overall gross profit margin was 47.0%, down 2.4 percentage points from the previous year. The main reason was that new Hi-HIS products were still in the early stages of promotion. The delivery cycle for some major projects was extended by objective factors, and the company increased in terms of personnel remuneration, travel expenses, and implementation costs. By industry, the revenue of the medical industry was 1.48 billion yuan, accounting for 91.6% of revenue, up 8.7% year on year, 1.36 billion yuan, accounting for 89.2% of revenue; revenue from the non-medical sector was 140 million yuan, accounting for 8.4% of revenue, down 17.6% year on year, and 170 million yuan in the same period last year, accounting for 10.8% of revenue. In terms of customers, new and old customers accounted for 37% and 63% respectively.
Hi-HIS will enter the comprehensive promotion stage and cooperate with Philips to create incremental value for products and channels.
In 2023, the company signed 22 Hi-HIS orders, and the order amount increased significantly over the same period last year. The new products have been applied in more than 40 hospitals across the country, with tertiary hospitals accounting for more than half. With the support of Hi-HIS, Taizhou Enze Hospital successfully passed the electronic medical record system application level 6 and connectivity maturity evaluation 5B. Feiyuekang CareSync, a CTAsy1.0 electronic medical record product jointly developed by the company and Philips, has officially unveiled, and pre-sales project work has begun with many hospitals. The company set up a strategic development department to collaborate deeply with Philips on the channel and product side, and use the incremental customers and channels it provides to promote collaborative sales of the company's medical information products and Philips medical equipment.
Profit forecasting and investment advice. It is estimated that in 2024-2026, the company's revenue will be 1,887, 22.01 billion yuan, and 2.51 billion yuan, respectively, and net interest rates to mother will be 2.30, 3.66, and 473 million yuan, respectively, and the corresponding EPS will be 0.15, 0.24, and 0.31 yuan/share, respectively. Referring to the latest valuation of comparable companies in 2024, considering that the company is expected to achieve rapid performance growth in 2024, the company can be given a reasonable valuation ratio of 33 times PE in 2024, with a reasonable value of 4.89 yuan/share to maintain a “buy” rating.
Risk warning. Industry demand recovery falls short of anticipated risks; implementation of relevant policies falls short of expectations; application of new technologies such as AI falls short of expectations