Items:
The company issued a forecast for the 21 mid-year report: in the first half of 2021, the company expects to achieve revenue of 12-1.8 billion yuan, an increase of 101.32% to 126.48% over the same period last year; the net profit of returning to the mother is expected to turn from loss to profit, which is expected to reach 2000-30 million yuan; and the non-net profit deducted by the mother is about 6-16 million yuan.
Comments:
Revenue growth of more than 100% compared with the same period last year is not the first time since returning to the mother has become a regular employee in 20 years. In the first half of 2021, the company continued to expand its traditional business, such as intelligent medicine and health management, and its strategic business, such as health management, increased by more than 100% compared with the same period last year. The company strengthened the control of expenses, and the financial expenses decreased by about 10% compared with the same period last year; the net profit of returning to the mother was turned from loss to profit, and the non-net profit was 6-16 million; and the operating cash flow continued to improve.
The innovative business has made steady progress, and the number of citizen cloud and healthy cloud users has increased. The company's traditional business continues to promote the process of production, and the core indicators achieve more than double-digit growth. In terms of innovative business, 1) Bull Health: health old-age care new product release; 2) Citizen Cloud and Health Cloud user growth: as of April 2021, the company's citizen cloud has covered 49 urban areas, including Shanghai and Haikou, with an increase of 7 cities over April 20, with more than 89 million registered users; Health Cloud has registered more than 40 million users, of which about 14 million increased in the first half of the year (source: company announcement, company website). The company's capacity in the field of innovation continues to accumulate, and user growth lays the foundation for the follow-up long-term operation and exploration of value-added services.
Corporate governance has been continuously optimized and the quality of signing has been improved. Since the new management team is in place, at the operational level, the company has enhanced the standardization of project management, strengthened budget guidance and performance appraisal, and integrated the company's resources; at the equity level, problems left over from history have also been satisfactorily solved. the successful introduction of harmonious health and international medicine is expected to carry out more resource cooperation in the future. In the first half of 21, the amount of money received by the company exceeded 1 billion yuan, an increase of about 40 percent over the same period last year; in the first half of the year, the newly signed contracts reached 1.36 billion yuan, an increase of 32 percent over the same period last year, and the gross profit of signing orders increased by about 41 percent over the same period last year.
21 years of medical IT industry order growth logic proved, the company continued to break through in the field of health insurance. According to the statistics of the bidding website, in the first half of 2021, the total order volume of 8 medical IT head companies grew by more than 50%, and the number of 10 million orders reached a record high, and the content of the project that won the bid was consistent with our previous point of view (in addition to the related construction of the original intelligent hospital, the medical community and new hospital construction continue to appear).
At the corporate level, the amount of winning bids in the first half of 2021 increased by more than 150% compared with the same period last year, with 11 orders at the 10 million level. In terms of the content of winning the bid, in addition to maintaining the advantages in the field of public health and winning the project of health added value of China Life in health management, the company also made a breakthrough in the field of medical insurance, winning the project of National Healthcare Security Administration, Tianjin Medical Insurance Bureau and Multi-city Medical Insurance Bureau.
Profit forecast: the industry boom continues, considering that the company's innovative business is still in the development stage, and the synergy effect appears substantially or needs to be run-in, we adjust and estimate the company's operating income in 2021-2023: 4.77 billion yuan, 6.516 billion yuan, 8.522 billion yuan; return to the mother net profit of 175 million yuan, 364 million yuan, 705 million yuan; EPS is 0.15,0.31 yuan, 0.59 yuan. (the original forecast for 21-23 years is: operating income 4.857 billion yuan, 6.647 billion yuan, 8.691 billion yuan; return to the mother net profit 373 million yuan, 644 million yuan, 1.043 billion yuan; EPS is 0.31,0.54,0.87 yuan)
Risk hints: increased market competition; lower-than-expected customer demand; uncertainty in business promotion processes such as Bull Health; and uncertainty in the collaborative process with China Life.
