2020Q2-2021Q1 continued to make a positive profit and maintained its "buy" rating on April 16. On April 16, the company released its 2020 annual report: revenue of 308 million yuan (- 7.52%), net profit of 35 million yuan (- 24.41%), non-net profit of 26 million yuan (- 33.80%), and net operating cash flow of 100 million yuan (+ 355.88%). EPS 0.24 yuan per share (- 0.08 yuan per share). The company also released the first quarterly report of 2021 (the following are all 2019 year-on-year): revenue of 47 million yuan (+ 15%), net profit of 6.7151 million yuan (+ 263.79%), deduction of non-net profit of 4.8909 million yuan (+ 203.93%), net operating cash flow of-13 million yuan (+ 72%). EPS0.04 yuan per share (+ 0.15 yuan per share). Combined with the company's 2020 annual report, we carefully consider that there is some uncertainty in the progress. We downgrade the forecast for 2021-2022 and estimate that the net return profit for 2021-2023 is 80 million yuan (originally 128 million yuan), 110 million yuan (original 191 million yuan) and 146 million yuan, respectively, and the corresponding EPS is 0.48,0.66,0.88 yuan per share, respectively. The company is the leader in the field of medical information subdivision, transforming the layout of assisted reproductive services market, using information technology to enable assisted reproduction has great development potential, and maintain the "buy" rating.
The assisted reproductive business continued to grow in each quarter, and the profitability of Queen Mary Hospital continued to increase with the recovery of the epidemic. In 2020, Queen Mary Hospital completed a total of 917 egg collection cycles, an increase of 46.96% over 2019, and a total of 672 transplant cycles. an increase of 5% over 2019, operating income of 38.4308 million yuan, net profit of 13.4143 million yuan, net interest rate of close to 35%, according to projections The net profit of 2020Q3-Q4 Queen Mary Hospital is expected to be about 4 million yuan and 4.31 million yuan respectively, showing a trend of continuous growth in each quarter of 2020.
Strategic cooperation Jinxin Reproduction, relying on the advantages of both sides to jointly build "Jinxin-Maddie" flagship reproductive center on April 18, 2021, the company and Jinxin Reproductive signed a strategic cooperation agreement. According to the agreement, relying on the policy advantage of Hainan Free Trade Port, the two sides will explore the establishment of a medical service industry base in Hainan and set up an assisted reproductive medicine consortium to jointly pilot the flagship reproductive center of "Jinxin-Maddie". In the future, the two sides will carry out in-depth cooperation in medical informatization and Internet hospital construction, big data and artificial intelligence construction, medical expert resource sharing, personnel training, scientific research cooperation, and so on. Medical information is an essential technology for assisted reproduction, which can enhance operational capacity and customer stickiness, and expand customer access channels. The cooperation between Jinxin Reproduction and McGrady Technology is complementary, and the brands, management and channels of both sides can be enhanced.
Risk hint: the integration of assisted reproductive hospitals is not as expected, and the application of Internet medical technology is not as expected.