FY2021's revenue has grown rapidly and its profits have been reversed. The company's FY2021 revenue was 15.5 billion yuan, an increase of 61.7% over the same period last year, which was 7% lower than the market consensus. During the reporting period, the company's gross profit margin was 3.62 billion yuan, and the gross profit margin was 23.3%, which is relatively stable. With the gradual increase in the proportion of prescription drugs in revenue, the overall gross profit margin is expected to decline in the future. The net profit for the current fiscal year was 340 million yuan, achieving a turnaround, but lower than the market consensus; the adjusted net profit increased sharply to 631 million yuan (yoy+198.5%), and the adjusted net interest rate increased by 1.4pcts to 4.1%. With the gradual emergence of scale effects, the performance expense rate and administrative expense rate of the company decreased to 10.4% (yoy-1pct) and 1.9% (yoy-0.4pct) respectively, while the sales expense rate and R & D expense rate increased slightly to 7.9% (yoy+0.4pct) and 2.7% (yoy+0.1pct), respectively.
Business overview: 1) Pharmaceutical self-management: thanks to the substantial increase in the popularity of Internet medical care under the epidemic environment, the company has increased the distribution of drugs, the number of SKU has been growing, and the medical self-income has reached 13.22 billion (yoy+62.5%), accounting for 85.2%. 2) Pharmaceutical e-commerce platform: revenue 1.97 billion (yoy+67.9%), accounting for 12.7%, mainly driven by a substantial increase in the number of platform merchants, an increase of 8000 over the same period last year to 23000. 3) Medical and health services: affected by the conversion of some business from proprietary to platform, income growth slowed to 280 million (yoy+12.4%), accounting for 1.8%. 4) Digital infrastructure business: revenue 52.93 million (yoy+34%), accounting for 0.3%.
The awareness of "Internet + Health" continues to rise, and the growth rate of AUU and GMV continues unabated. During the reporting period, self-operated AAU reached 81 million, with a growth rate of 68.8%. The number of annual active consumers of Tmall Pharmaceutical platform exceeded 280 million, with a growth rate of 47.3%, and the company's traffic increased significantly. The GMV of Tmall's pharmaceutical platform reached 123.2 billion yuan, an increase of 47.5% over the same period last year.
Investment suggestion: the Internet medical industry is about to enter a period of rapid growth. Alibaba Health Information Technology, as the leading company in the pharmaceutical e-commerce sector, will give priority to benefiting, Ali traffic will help the company to obtain customers at low cost, and digital infrastructure business will help to lay out drug sales. I am optimistic about the company's medium-and long-term growth space.
Risk hints: 1) industry policy risks; 2) intensified market competition; 3) macroeconomic downturn