EventWaybackarcadeHealth information recently released the first quarterly report of 2023 and 2024: the company realized operating income in 2023 3Waybackarcade.100 million (- 4)Waybackarcade.6%)WaybackarcadeThe return net profit is 60 million (- 48.1%), and the non-return net profit is 45.204 million (- 53.3%). The main reason is that due to the influence of external factors, the relationship between supply and demand in the company's industry has changed in stages, and the pace of the company's business and project implementation has been seriously hindered. The business did not achieve the expected results. 2024Q1 achieved revenue of 35.633 million (- 41.9%), due to the decline in business demand caused by periodic market fluctuations brought about by industry policy reform and the shortage of local government funds; net profit of 5.242 million (- 47.3%) and deduction of 4.769 million (- 46.5%) of non-return net profit due to lower operating income, increased sales and management expenses, and lower investment income. Management expenses have increased significantly, while R & D still maintains high input costs: in 2023, the company's sales expenses and management expenses were 25.302 million (+ 4.4%) and 30.2 million (+ 61.1%), respectively. The increase in management expenses is mainly due to the increase in the salary of managers due to the increase in the scope of consolidation of subsidiaries; the depreciation of fixed assets increases with the purchase of pharmacy project equipment. The R & D expenditure in 2023 was 23.37 million (+ 4.3%), mainly due to increased R & D investment during the reporting period. Actively open up overseas markets and strategically lay out the pharmaceutical retail market. With the successful experience and good reputation of joint ventures and cooperation with Germany, Finland and other countries for a long time, the multi-strategy parallel company has rapidly promoted its products to the Saudi, Middle East and North African markets, and made every effort to promote the Saudi medical industry towards digitization, automation, and improving the medical industry and service quality and efficiency. The joint venture company has established business contacts with the Ministry of Health of Saudi Arabia, the medical federation of public hospitals in some parts of Saudi Arabia, and a number of large public and private hospitals. As of the date of disclosure of the report, the joint venture company has signed a memorandum of cooperation with Lean, an information system integrator designated by the Saudi Ministry of Health, to digitize more than 2300 grass-roots hospitals (PublicHealthcare Center) in Saudi Arabia, and has begun to supply small quantities to the joint venture company. The company has also signed relevant agreements with Hong Kong, Macao, Taiwan, the Netherlands, Russia, Poland in Europe, Singapore, Indonesia, Thailand, Malaysia, the Philippines in Southeast Asia, Chile, Bolivia and other countries or regions in South America and intended customers, in addition to a stable supply of China's Taiwan market, has begun to supply to the Russian market. The company has successively reached strategic cooperation with a number of industry leaders in the pharmaceutical retail field to help retail drugstores open a new model of smart retailing. On the basis of the smooth handover of more than 20 store equipment already operated by an Internet platform enterprise and the rapid delivery of the business contracts of more than 100 stores, the "smart drugstore" model plans to carry out batch reproduction and promotion throughout the country. We will actively explore the online payment model of health insurance that can be replicated nationwide with Tianjin and other places, and gradually expand the "smart drugstore" model from a single drug to a "wisdom warehouse" model integrated with beauty makeup, family planning products and contact lenses. Investment advice and profit Forecast with the rapid development of overseas development, the continuous development of new retail markets, and the improvement of the external environment, the company still has broad room for future development. It is estimated that the company's revenue growth rate from 2024 to 2026 is 27.47%, 17.53%, 13.55%, respectively, and the net profit of return to its mother is 1.32 pm, 1.61 billion, respectively, with a corresponding growth rate of 120.45%, 21.71%, 18.46%. The EPS is 0.97max 1.18amp 1.40 yuan per share, and the corresponding PE is 36.75max 30.19max 25.49X. Maintain a "buy" rating. The risk indicates that the market growth is less than expected, the industry competition aggravates the risk, the policy risk and so on. [disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.

[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.