Summary:
Cover for the first time and give an overweight rating. It is estimated that the income of the company from 2021 to 2023 is 8.40,12.63,1.95 billion yuan respectively, and the net profit is-9.44,13.10 and-1.5 billion yuan respectively, and the corresponding EPS is-1.02,1.42,1.62yuan respectively. Using the SOTP valuation method, the target price is HK $49.40, corresponding to the 2022 big data platform and solution 1.0x PSG, life sciences solution 0.6x PSG, health management platform and solution 0.3x PSG.
With YiduCore as the core, the three capabilities enable commercial evolution and ecological coordination. Based on the data intelligent infrastructure YiduCore, the company starts the commercialization process with strong data processing capabilities, medical knowledge databases and scenario operation capabilities, and empowers medical solutions. Thus supporting a more effective health care ecosystem including hospitals, pharmaceuticals, biotechnology and medical device companies, research institutions, insurance companies and other participants. With the growing ecosystem of participants and the increasing value generated by processing more data, the self-reinforcing nature of YiduCore can create huge network effects to accelerate the company's expansion.
Gross profit margin has entered a rapidly rising range, and the business model has been gradually explored. Driven by the change in income structure and improved pricing power, gross profit margin increased sharply, reaching 26.3% (+ 20.7pct) in fiscal year 2020, leading to strong gross profit growth, which turned from negative to positive in 2020. The company focuses on the three main businesses, the pricing power has been gradually reflected, and the economies of scale of service delivery has also begun to show.
The diversified layout of the three core plates aims at the whole medical big data ecology. Among them, big data platform and solution income YOY+710.2%, life science solution income YOY+195.4% in the initial development stage, and health management platform and solution income YOY+414.8%, in the early stage all entered a period of rapid development, and 2021Q1 continued to achieve high revenue growth under the high gross margin. The three major business sectors cover all aspects of intelligent drug development, intelligent hospital services, intelligent monitoring and policy-making. as the market for services becomes more mature, Yidu Technology will continue to formulate and improve cash realization strategies.
Risk hint: big data platform landing is not as expected; medical data may have security and policy risks; less than expected commercialization progress leads to financial risk