SEARAINBOW(000503) Soochow Securities·2024-10-15 23:30Investment Rating - The report assigns a "Buy" rating for the company, marking the first coverage of its stock [3]. Core Insights - Guoxin Health is positioned as a national team in medical insurance IT, focusing on digital healthcare and digital pharmaceuticals, with a strong emphasis on comprehensive management services for medical insurance funds, medical quality safety services, and drug/device regulatory services [2][13]. - The company has rapidly expanded its health service segment, achieving revenue of 4.09 million yuan in 2023 and 22.45 million yuan in the first half of 2024, indicating significant growth [2]. - The recent issuance of public data policies by the central government is expected to catalyze market opportunities, with an estimated market space of at least 100 billion yuan for public data authorization operations [2][23]. - The DRG/DIP payment reform is anticipated to drive upgrades in medical information systems, with Guoxin Health expected to be a core beneficiary due to its leading market share in DRG/DIP services [2][36]. Summary by Sections 1. Medical Insurance IT National Team - Guoxin Health, a state-owned enterprise under China Guoxin Holdings, focuses on digital medical insurance, digital healthcare, and digital pharmaceuticals, providing comprehensive services in medical insurance fund management, medical quality safety, and drug/device regulation [13]. - The company has seen steady revenue growth, with 2023 revenue reaching 330.13 million yuan, and is recovering from previous losses with a gross margin of 24.84% [19]. 2. Public Data Policy Implementation - The central government has issued a series of policies aimed at accelerating the development and utilization of public data resources, which is expected to enhance local and industry execution capabilities [23][25]. - Guoxin Health is well-positioned to benefit from these policies, having already secured public data operation rights in Hangzhou [31]. 3. DRG/DIP 2.0 Plan Release - The DRG/DIP payment reform is entering its 2.0 phase, which will optimize grouping methods and accelerate the transition to new payment standards across various regions [33][36]. - Guoxin Health has a leading market share in DRG/DIP services, having served over 70 regions in DRG and over 40 in DIP, positioning it to benefit significantly from the ongoing reforms [37]. 4. Earnings Forecast and Valuation - The company is expected to achieve revenues of 4.03 billion yuan in 2024, 4.94 billion yuan in 2025, and 6.08 billion yuan in 2026, with a projected return to profitability in 2026 [3][39]. - The report anticipates steady growth in digital medical insurance and digital healthcare segments, with revenue growth rates of 10% and 50% respectively over the next few years [39].