Neusoft Group (600718): Innovative business develops well, traditional business shows solid profits in the first quarter

Neusoft Group (600718): Innovative business develops well, traditional business shows solid profits in the first quarter

In the first quarter of 2019, revenue has regained momentum. Neusoft released its 2018 annual report and 2019 first quarterly report: 2018 annual revenue increased by 0%.

55% to 71.

700 million, profits can be reduced by 89.

6% to 1.

10,000 yuan.

Revenue in the first quarter of 2019 increased by 7 per year.

95% to 13.

3.5 billion, net profit 86% to 395 million every ten years.

The development trend predicts the steady growth of net profit after the impact of innovative business.

In the first quarter of 2019, after the impact of innovative business (Neusoft Medical, Neusoft Xikang, Neusoft Wanghai, Neusoft Ruichi, Ruisheng Property Insurance, etc.), net profit attributable to mothers of the same caliber increased by 22%, reflecting the stability of traditional businesses.

We believe that short-term profit pressure is expected to give Neusoft a long-term growth point.

Continuing the leading position in the medical industry and winning the bid for the national medical insurance information platform construction project.

According to IDC data, Neusoft has maintained the No. 1 market share in the medical IT market for eight consecutive years, and has accumulated a strong customer base in the industry.

As of 2018, Neusoft has served more than 100 customers of the Health and Medical Commission and more than 2,500 hospital customers, 上海夜网论坛 including nearly 500 tertiary hospitals. Regional information products have covered 29 prefecture-level cities in 7 provinces, and cloud HIS products have provided primary medical care.Institutions continue to penetrate.

The company recently won the first package of the medical insurance information platform (internal unified portal gateway), which has the significance of benchmarking demonstration, and is expected to gain an opportunity for the construction of the medical insurance information platform in the country later.

It is reported that the new business is developing well.

Neusoft Medical has covered more than 100 countries and regions around the world. In 2018, it released a variety of new products such as magnetic resonance information technology platforms.

Neusoft Xikang’s “Cloud Hospital Platform” has been launched in more than 20 cities including Ningbo and Shenyang. The platform-based telemedicine and health management business is worth looking forward to.

Neusoft Wanghai has covered nearly 3,000 hospital customers by the end of 2018, and has made breakthroughs in the landing of DRG, payment, and supply chain management.

Neusoft Ruichi promoted major projects of Wuxi connected car city-level demonstration applications, and was responsible for the construction of core network element V2X services.

During the year, Neusoft Ruichi has not released a new generation of mass-produced ADAS products, replacing many OEMs such as Dongfeng and FAW.

Earnings forecast We maintain our 2019 revenue forecast, lower our 2020 revenue forecast by 2%, and lower our 2019/20 net profit forecast by 7% and 1% to 4.

3.9 billion / 5.

700 million.

Estimated and recommended maintenance ratio, lowered target price by 5% to 18 yuan, based on 51 times 2019 price-earnings ratio.

The current expected transaction is 38 times P / E ratio in 2019, which corresponds to our target price still 33% growth space.

Increased risk innovation business investment; new business landed less than expected