HKUST Xunfei (002230) Quarterly Commentary: Per Capita Efficiency Continues to Improve, Smart Healthcare Moves into Scale Promotion
Event: The company released the third quarter report of 2019. In the first three quarters of 2019, the company achieved revenue of 65.73 ppm, an increase of 24 in ten years.41%; net profit attributable to mother 3.740,000 yuan, an increase of 70 in ten years.51%; deducting non-net profit of 69.81 million yuan, an annual increase of 183.49%. Opinion: Continuous release of performance, strengthened internal management, promoted per capita performance improvement The company achieved net profit attributable to its mother in the first three quarters.740,000 yuan, an increase of 70 in ten years.51%, of which Q3 achieved net profit attributable to mothers in a single quarter1.840,000 yuan, an increase of 108 in ten years.06%, close to the performance forecast upper limit.With the company’s incremental performance management and strategic focus being gradually deepened, the company has been improved on the expense side. In the first three quarters, sales expenses and management expenses increased by only 10.86%, 17.61%.Per capita efficiency has continued to improve, with gross profit per capita of 350,000 in 2018, and about 400,000 in the first three quarters of 2019.With the gradual elimination of the impact of the shift period of the business structure and organizational structure adjustment, key indicators such as the company’s per capita performance will continue to improve in the future. The steady development of wisdom learning and wisdom learning has improved the profit quality of education business. In the first three quarters of the company, the gross profit share of core wisdom and other core products has continued to increase.In terms of intelligent lessons, benefiting from the convenient and intelligent empowerment of teachers and the accumulation of previous classroom data, product recognition has increased, and the advantage of just-in-time + generation difference has continued to expand; in terms of intellectual sciences, the company focuses this year on the in-depth operation of schoolsIn the expansion of grades, classes, subjects, etc., continuous efforts have been made, and the renewal rate has continued to increase.In the future, the accumulation of wisdom lessons and wisdom learning and the improvement of services will hopefully further improve the profit quality of the company’s education business.In addition, the first batch of AI talent training business plans to cover 100 colleges and universities will increase revenue. After a long-term continuous expenditure of smart medical care, it is expected to enter the stage of large-scale promotion. The medical business is positioned as the company’s core track for a long time. After years of continuous expenditure, the company’s smart medical business has completed early accumulation and experimental breakthroughs.The position of intelligent medical assistants is to help primary medical care to solve common diseases, with breakthrough applications and large-scale replication scenarios. At present, intelligent medical assistants have significantly improved the electronic medical records themselves, the standardization of medical records, and the rationality of diagnosis.After the company’s intelligent medical assistant conducted a pilot project in one district of four counties in Anhui in March 2018, it has successively served more than 50 counties in Central China and Anhui, serving more than 1,000 township hospitals and more than 10,000 village clinics.In the future, the intelligent medical assistant will be fully rolled out in Anhui Province, and is expected to enter the stage of large-scale promotion nationwide through the accumulation of its technical advantages and data advantages. Profit forecast: It is expected that the company will achieve net profit attributable to mothers from 2019 to 2021.03/13.06/18.2.5 billion, the corresponding EPS is 0.41/0.59/0.83 yuan, maintain “Buy” rating. Risk warning: The income side is gradually affected by the business and is less than expected; the advancement of the smart medical business is less 武汉桑拿洗浴会所 than expected