\u3000\u3000 Winning Health Technology Group Co.Ltd(300253) (300253)
Event: on January 24, 2022, Winning Health Technology Group Co.Ltd(300253) announced the performance forecast of 2021. The company expects the annual operating revenue to increase by 20% – 25% year-on-year; The net profit attributable to the parent company was 343.77 million yuan – 466.55 million yuan, a year-on-year decrease of 5% – 30%; Deduct non net profit of 186.52 million yuan – 298.43 million yuan, a year-on-year decrease of 20% – 50%.
Comments:
The epidemic affected business development, and the growth rate of revenue was lower than expected. Due to the intermittent impact of covid-19 pneumonia epidemic, more stringent epidemic prevention and control measures have been implemented in many parts of the country for a period of time (especially in the fourth quarter under the influence of covid-19 mutant Omicron), and public transportation and personnel flow in some areas have been blocked, resulting in the bidding, project implementation and The project payment collection has been delayed, which has affected the business development to a certain extent. According to the preliminary statistics up to now, the contract amount of new orders in the traditional medical and health information business has increased by more than 25% year-on-year. It is expected that the total operating revenue of the company in the whole year will increase by about 20% – 25% year-on-year, of which the revenue from software sales and technical services of core products will increase by about 10% – 15% year-on-year, and the revenue from hardware sales will decrease slightly year-on-year.
The increase of strategic investment and other factors affect the net profit. In 2021, the company’s Internet medical and health business showed an accelerated development trend as a whole. The income of internet medical and health business included in the consolidated statements is expected to exceed 500 million yuan, with a year-on-year increase of more than 200%. However, due to the increase of strategic investment and other reasons, the loss increased more year-on-year, and the impact on the net profit attributable to the parent of the consolidated statements is expected to be about – 80 million yuan; Due to the implementation of the equity incentive plan and the issuance of convertible corporate bonds, the total amount of equity settled share based payment fees and the accrual of convertible bond interest is about 135 million yuan, an increase of about 55 million yuan over the previous year; Affected by the increase in the balance of accounts receivable and collection, the provision for bad debts increased by about 70% – 100% year-on-year, which had a great impact on the net profit.
With the rapid development of Internet medicine, the competitiveness of new generation products continues to appear. The promotion of the new generation of products, venex, has been smooth, and the newly signed contract orders have continued to grow. By the end of the third quarter of 2021, venex products have been implemented in about 140 hospitals across the country, and the demonstration effect has further expanded. It is planned to implement 200 in the whole year. The company’s Internet medical and health business has developed rapidly. On behalf of the enterprise Weining Internet and its holding subsidiaries, the total revenue of Nari health, keykey technology and Weining technology is expected to exceed 600 million yuan, with a year-on-year rapid growth, and the growth rate is significantly faster than that of the previous year. In addition, some of the funds raised by the company’s convertible bonds will be used for the “venex my project”. The number of potential users of medical mobile terminal products is huge and the market prospect is broad. It plays an important role in the “Trinity” development of smart hospital, information interconnection and the integration of diagnosis and treatment inside and outside the hospital, WiNEX MY products in the future is expected to enhance the company’s competitiveness in the Internet plus medical service market. At the same time, the reform policy of medical insurance payment mode is accelerated, the demand for medical informatization is increased, and the company is expected to benefit from medical treatment.
Investment suggestion: considering the impact of the epidemic on the project and the increase of input cost, the performance forecast is lowered. It is estimated that the operating revenue of the company from 2021 to 2023 will be 2.788 billion yuan, 3.708 billion yuan and 4.709 billion yuan respectively, the net profit attributable to the parent company will be 420 million yuan, 724 million yuan and 1.005 billion yuan respectively, and the EPS will be 0.20, 0.34 and 0.47 yuan respectively. Maintain the “buy” rating.
Risk warning: industry competition intensifies; The promotion of new products is less than expected; Epidemic situation affects business development
