Jiahe Meikang (688246), founded in 2006, is one of the earliest enterprises engaged in the R & D and industrialization of medical information software in China. It has been deeply engaged in the field of clinical information and has maintained a leading position for a long time. The company's business can be divided into two parts: medical informatization and medical devices, of which the proportion of medical informatization has gradually increased. The company's self-made software includes Jiahe electronic medical record platform, hospital data center, intelligent medical product system and internet medical solutions, among which electronic medical record is the company's flagship product.
The scale of China's medical informatization market has grown steadily, and the new medical infrastructure has brought considerable incremental market. In 2019, the market scale of China's medical informatization is about 55 billion yuan. It is expected that the market scale will be nearly 65 billion yuan in 2020, and the overall industry growth rate in recent five years will be about 15%. After the epidemic, all localities intensively opened the medical weakness board and the expansion of medical resources. It is estimated that the incremental market scale of information construction brought by the expansion of medical resources during the 14th Five Year Plan period may be nearly 50 billion yuan.
Electronic medical record is one of the key systems in hospital information construction, which is evolving towards intelligence and specialization. From 2002 to 2022, the state successively issued policies and plans related to the construction and evaluation of electronic medical records. After preliminary pilot and promotion, the standardization level of electronic medical records has been continuously improved. According to IDC data, the market scale of China's electronic medical record in 2020 was about 1.74 billion yuan, with a year-on-year increase of 19.2%. It is expected that the annual compound growth rate from 2020 to 2025 will be 15.7%. There is still much room for improvement in the construction of China's electronic medical record.
The electronic medical record system is the basic condition for the reform of DRG / Dip payment mode. The historical data and real-time data collected are related to the patient's medical records, and the data are from the electronic medical record system. According to the statistical calculation of public bidding data, the reform of DRG / Dip payment mode is expected to bring a market increment of 10 billion yuan, including a system construction market of about 15.4 billion yuan and an operation and maintenance service market of nearly 3.3 billion yuan / year at the hospital end, a system construction market of about 1.2 billion yuan and an operation and maintenance service market of nearly 300 million yuan / year at the medical insurance and health end.
There are many competitors in the electronic medical record market, and the company has an obvious leading position. Medical IT manufacturers basically have electronic medical record systems, such as Winning Health Technology Group Co.Ltd(300253) , B-Soft Co.Ltd(300451) , Dhc Software Co.Ltd(002065) , Wonders Information Co.Ltd(300168) , etc. In the segment of EMR, IDC data show that in 2020, the market share of the top five leading manufacturers in China's EMR market was 58.5%, and the company's market share ranked first, reaching 18.6%, and ranked first for seven consecutive years. The company has customers all over the country, covering more than 1390 hospital customers, including 424 third class hospitals, accounting for more than a quarter of the third class hospitals in China.
High intensity R & D investment enhances the company's competitive advantage. From 2018 to the first half of 2021, the proportion of R & D expenses in operating revenue of the company was 25.13%, 16.05%, 17.35% and 25.13% respectively. The proportion of total volume and revenue continued to rise, which was significantly higher than the average level of the same industry. By the first half of 2021, the company had 637 R & D and technical personnel, accounting for more than 35% of the total number of employees. In addition, the company is also a participant in the formulation of national electronic medical record and interoperability rating standards, and the number of high-level hospital customers approved in the interoperability and electronic medical record rating is in the leading position in the industry; In terms of system architecture design, medical record data recording method, medical record generation method and other key node technologies, it also has a number of invention patents.
Huachuang Securities said that the company is a leading manufacturer of electronic medical records, with obvious competitive advantage. It is estimated that the company's revenue from 2021 to 2023 will be 778 million yuan, 1089 million yuan and 1476 million yuan respectively, with corresponding growth rates of 46.2%, 40.1% and 35.5% respectively; The net profit attributable to the parent company was 83 million yuan, 181 million yuan and 264 million yuan, with corresponding growth rates of 288.7%, 119.8% and 45.5% respectively; EPS is 0.60 yuan, 1.32 yuan and 1.92 yuan respectively. In terms of valuation, the comparable company valuation method is adopted. Based on the company's leading position in the electronic medical record industry, the company is given a certain valuation premium, 35 times PE valuation in 2022, corresponding to the target price of about 46 yuan / share. It is covered for the first time and given a "recommended" rating.
