Zhongke Jiangnan: 24Q1 revenue yoy +19.36%, excluding share payments, YOY -35.33% Zhongke Jiangnan 24Q1 achieved revenue of 132 million yuan (yoy +19.36%), net profit to mother of 136.14,000 yuan (yoy -211.54%), net profit of 14.2396 million (yoy -255.52%); net non-net profit of 5.921 million yuan (yoy -255.52%) after excluding share payments; net operating cash flow was -1.95, yoy-1.34 billion %
Maintaining the profit forecast, the company's 24-26 EPS is estimated to be 1.92/2.58/3.43 yuan, respectively. Comparable to the company's 2024PE, the 2024PE is 27 times (Wind). Since the company is in a leading position in the industry in fields such as electronic medical insurance certificates and electronic accounting certificates, and is one of the core data element suppliers in the health insurance and accounting fields, it maintains the company's 2024 target PE 40 times, corresponding to a target price of 76.99 yuan, maintaining the purchase rating.
24Q1: Rapid revenue growth, increased share payments, reduced tax rebates, and asset impairment dragged down net profit. Against the backdrop of tight G-side budgets, the company's 24Q1 revenue maintained a rapid growth trend, but due to factors such as a sharp increase in share payments, the company's net profit to mother changed from profit to loss. Specifically: 1) Share payment: 24Q1 share payment fee is 225.02 million, 23Q1 is 0; 2) Reduced software tax rebates:
24Q1 other income was 2.96 million, a year-on-year decrease of 5.03 million; 3) Credit impairment losses: 24Q1 credit impairment losses (bad debt provision) increased 3.32 million year over year, and asset impairment losses (provision for price reduction in contract performance costs) increased 2.11 million year over year. The above three non-business-related expenses totaled 32.96 million. Excluding the above factors, the company's net profit for 24Q1 was 19.346 million, yoy +58.5%. The company's 24Q1 staff increased by more than 100 over the same period last year, and the overall gross margin was 56.65% (yoy-3.26pct).
2024 outlook: The two new businesses of electronic medical insurance settlement vouchers and electronic vouchers are expected to grow rapidly in 2024, and the company's electronic payment and integrated business is expected to maintain steady growth in 2024; the company should focus on the progress of the two new businesses in 24 years: 1) Electronic medical payment vouchers: This year, the National Health Insurance Administration attached great importance to the progress of electronic medical payment vouchers, and promotion in medical institutions in various provinces is expected to accelerate; 2) Electronic vouchers: Currently, the company is expected to be fully promoted during the year. micro The enterprise sector has a first-mover advantage. We believe that the two new businesses have broad potential. The company is in a leading position in both new business areas, and it is expected that the two new businesses will drive the company's 2024-2026 performance to maintain a rapid growth trend.
Health insurance data elements: It is expected that in 24 years, promotion companies will actively explore the application of data elements in the fields of finance, finance, electronic accounting documents, health insurance, etc. In 2023, the company listed more than 10 data capabilities and data products on the Guangzhou Digital Exchange. Among them, the “Easy Insurance (Health Insurance Claim)” data product was listed on the Guangzhou Data Exchange on February 3, '24, to connect with commercial insurance companies to achieve underwriting and quick claims. This product has obtained the “Guangdong Data Asset Registration Certificate” issued by the Guangdong Provincial Bureau of Political Affairs and Statistics, and the company enjoys 50% data processing and use rights. We expect the company to replicate and promote this model in other provinces and cities in 2024, which will open up new growth space for the company.
Risk warning: Risks such as policy progress falling short of expectations and increased market competition.