Meinian Onehealth(002044) 兴业证券·2024-05-17 03:01Investment Rating - The report gives a "Buy" rating to the company, with a target price of 4 63 yuan [1] - The company is expected to achieve EPS of 0 20/0 31/0 38 yuan for 2024-2026, with corresponding PE ratios of 22 7/15 1/12 1x [2] Core Views - The company is a leading private health check-up provider in China, with optimized customer structure and dual growth drivers of group and individual check-ups [2] - The company has achieved significant cost reduction and efficiency improvement through digital transformation and AI technology, leading to a substantial increase in net profit margin [12] - The company's health check-up business has seen both volume and price growth, with a 13 0% YoY increase in total check-ups and an 11 2% YoY increase in average customer spending [7][9] Financial Performance - In 2023, the company achieved revenue of 10 894 billion yuan (YoY +26 44%), net profit attributable to the parent company of 506 million yuan (YoY +190 45%), and non-GAAP net profit of 463 million yuan (YoY +181 61%) [1][5] - In 2023Q4, the company achieved revenue of 3 676 billion yuan (YoY +29 77%), net profit attributable to the parent company of 280 million yuan (YoY +264 00%), and non-GAAP net profit of 235 million yuan (YoY +263 70%) [1][5] - In 2024Q1, the company achieved revenue of 1 801 billion yuan (YoY -14 91%), net profit attributable to the parent company of -287 million yuan, and non-GAAP net profit of -302 million yuan [1][5] Business Operations - The company has 596 health check-up centers, including 306 wholly-owned centers and 290 joint-venture centers [7] - The company's four major brands, including "Meinian Health", "Ciming", "Ciming Aoya", and "Meizhao", achieved revenue growth of 26 95%, 29 75%, and 32 14% respectively in 2023 [11] - The company's innovative products contributed nearly 10% of revenue in 2023, and this is expected to increase to 10%-15% in 2024 [9] Cost Efficiency - In 2023, the company's net profit margin was 6 14% (YoY +11 96pp), gross profit margin was 42 79% (YoY +8 35pp), and operating expense ratios for sales, management, and finance were 23 53% (YoY -0 38pp), 7 64% (YoY -1 68pp), and 2 75% (YoY -0 61pp) respectively [12] - The company expects to achieve a 10% reduction in rent in 2024, which could increase gross profit margin by 1pp-2pp [12] Digital Transformation and AI - The company has achieved full business digital transformation, with its self-developed smart health check-up cloud platform "Bian Que" covering over 95% of its branches [15] - The company has integrated health check-up big data with AI technology to empower innovative products in areas such as lung nodule AI diagnosis, brain stroke AI diagnosis, and ECG AI diagnosis [15] - The company has launched "Health Xiaomei", an AI health management robot, in collaboration with Huawei Cloud and Runda Medical [15]