GOODWILL(688246) 广发证券·2024-08-20 11:11Investment Rating - The report maintains a "Buy" rating for the company with a target price of 20.81 CNY per share, compared to the current price of 18.31 CNY [2]. Core Insights - The company reported a steady revenue growth of 2.9% year-on-year for the first half of 2024, with total revenue reaching 300 million CNY. However, the net profit attributable to shareholders was a loss of 27.47 million CNY, which is an 18.6% increase in losses compared to the previous year [1][9]. - The company's gross margin improved to 48.03%, up by 2.51 percentage points from the same period last year, attributed to enhanced product maturity and reduced project costs [1][9]. - The company is focusing on internal management improvements, leading to a decrease in expense ratios across sales, management, and R&D [1][10]. - Significant advancements have been made in specialized electronic medical records and disease prevention capabilities, particularly through collaborations with subsidiaries [1][11]. Financial Performance Summary 2024H1 Key Financial Data - Revenue: 300 million CNY, up 2.9% year-on-year - Net Profit: -27.47 million CNY, loss increased by 18.6% year-on-year - Gross Margin: 48.03%, up 2.51 percentage points year-on-year [5][9]. Expense Ratios - Sales Expenses: 49.25 million CNY, down 4.0% year-on-year, with a sales expense ratio of 16.4% - Management Expenses: 48.71 million CNY, down 6.2% year-on-year, with a management expense ratio of 16.2% - R&D Expenses: 76.17 million CNY, down 19.8% year-on-year, with a R&D expense ratio of 25.4% [6][10]. Profit Forecast - Expected net profits for 2024-2026 are projected to be 72 million CNY, 103 million CNY, and 121 million CNY respectively, with corresponding EPS of 0.52 CNY, 0.75 CNY, and 0.88 CNY [1][14]. Revenue Breakdown - Self-developed software revenue is expected to grow at 12.0% in 2024, 13.0% in 2025, and 13.0% in 2026 - Software development and technical services are projected to grow at 15.0% in 2024, 17.0% in 2025, and 17.0% in 2026 - External software and hardware sales are expected to grow at 10.0% in 2024, 12.0% in 2025, and 12.0% in 2026 [14][19]. Valuation - The company is assigned a reasonable valuation multiple of 40 times PE for 2024, leading to a target price of 20.81 CNY per share, based on comparisons with similar companies in the industry [1][14].