FY2021 revenue fell short of our expectations
The company's revenue for fiscal year 2021 was 15.518 billion yuan (+61.7% YoY); the net profit of the mother was 349 million yuan, turning a year-on-year loss into a profit; adjusted net profit of 630 million yuan (+198.5% YoY); revenue side growth fell short of our expectations, mainly due to the company's business strategy adjustments in the second half of the year, and product sales in the self-operated sector slowed down.
Development trends
Proprietary business has slowed down somewhat in 2H21, and e-commerce business performance continues to be impressive. The company's self-operated business contributed 13.216 billion yuan (+62.5% YoY) to 202FY. We estimate that the company's self-operated business slowed month-on-month in the second half of the fiscal year. We expect a slowdown in product sales in the self-operated sector mainly due to the company's business strategy adjustments in the second half of the year, combined with the factors of the previous year's high base. The e-commerce platform business contributed 1,965 million yuan in revenue (+67.9% 6), the annual GMV reached 123.2 billion yuan (up 47.5% 6), the number of annual active consumers exceeded 280 million (over 190 million over FY2020), and the operating performance continued to be impressive. Furthermore, in the company's proprietary pharmacy revenue, the share of drug revenue from self-operated pharmacies operated under the Alibaba Health brand continued to rise to 64.8%.
Open up the online and offline medical systems, and the healthcare service sector model is beginning to appear. The company achieved healthcare service revenue of 284 million yuan in FY2021, an increase of 12.4% over the previous year. In terms of online medical platforms, the company positioned the Medical Deer App+ Alipay Healthcare Channel as the core platform for online diagnosis and treatment by covering medical service content such as medical information consultation, online consultation for mild cases, registered appointments, post-diagnosis rehabilitation, etc.; at the same time, it completed the fulfillment and delivery of medical services in actual scenarios through medical platforms such as registered appointments, consultations with famous doctors, and offline guidance, opening up a closed loop in the online and offline medical system. We anticipate that through layouting|and opening up online medical and local medical systems, the company will begin to gradually form a comprehensive pharmaceutical products+professional medical service business system, which is expected to achieve continuous growth on the revenue side of the core business sector.
Continue to promote the layout of new digital medical infrastructure and optimize the patient-centered medical business ecosystem. During the reporting period, the company also strategically invested in zero technology to explore the service supply and sales model of online oncology drugs. The company also collaborated with Xiniu Technology and the First Hospital of Zhejiang University to create future hospital information system projects to further empower medical institutions with digital infrastructure. In addition, Ali Health and Cainiao Network jointly launched a global logistics service for pharmaceutical traceability in April 2021, continuing to promote the strong position of traceability business. We believe |By continuing to promote the layout of the new infrastructure field of digital healthcare, the company is gradually strengthening the patient-centered medical business ecosystem.
Considering that the adjustment of the retail segment business strategy needs to be further verified, we lowered the company's revenue forecast for fiscal year 2022 by 18.4%/47.2% respectively, and introduced the company's revenue forecast for fiscal year 2023 of 34.042 billion yuan/506 million yuan for the first time. Considering that the company continues to optimize the patient-centered healthcare business ecosystem while the valuation was switched to FY2022, we temporarily maintain our target market value of HK$376.4 billion for FY2022 (based on SOTP valuation), which corresponds to the current closing market capitalization of 36%. Maintain an outperforming industry rating.
risks
The conversion of Alibaba traffic fell short of expectations; the synergies between the various resources of the Ali system fell short of expectations.