Neusoft Group: How to build Internet healthcare leading stocks?

The new medical and health industry based on information technology and the Internet has obvious trends. As the industry's leading and most comprehensive layout, Neusoft Group can occupy the most competitive position.

Internet innovation is on the rise, and the health care industry has shown rapid development with the introduction of relevant policies, and the integration of the two has made Internet medical treatment hot. In this context, Neusoft Medical and Neusoft Xikang, subsidiaries of Neusoft Group, have introduced strategic investors, and have taken the lead in the field of medical device manufacturing and Internet medical.

Exploring the enterprise

Medical business is the main growth point

Neusoft Group's main business is software outsourcing services, industry information solutions, medical equipment and services, etc. It is one of the leading providers of medical IT systems in China.

The 2014 results are in line with public expectations. In the first three quarters of 2014, the company achieved operating income of 4.93 billion yuan, a year-on-year increase of 1%. It was mainly driven by the growth of medical system and domestic software and system integration revenue. The net profit attributable to shareholders of the parent company was 210 million yuan, a decrease of 24% over the same period. The increase in expenses and the significant decrease in the gains and losses from investment income and fair value changes are the main reasons for the decline.

In terms of business, the software and system integration business revenue in the first three quarters of 2014 was 3.87 billion yuan, down 8.3% year-on-year, accounting for 78.6% of revenue, down 8 percentage points year-on-year; medical system business income was 1 billion yuan, up 71.5% year-on-year. The proportion of revenue reached 20.3%, up 8.4 percentage points year-on-year, and the income share was rapidly increased. In the first three quarters, the gross profit margin of the company reached 32.2%, an increase of 1.1 percentage points year-on-year. In addition, the proportion of international software business further fell to 22.2%, a decrease of 8.7 percentage points year-on-year.

UBS Securities analyst Zhou Zhong said in an interview with the author that the medical industry information and automotive electronics will be the main growth driver of the company in the future. In recent years, the company has been undergoing continuous transformation: the first step is to transform from a software outsourcing company to a domestic solution provider; the second step is to upgrade the business model of domestic solutions, mainly through software operation mode, Xikang health management platform and other modes. change. "The goal of the company's first step has been basically achieved, and the reliance on software outsourcing business has been continuously reduced. However, the business model upgrade of the domestic solution business has not yet been effective, and profitability still needs to be improved."

Introducing huge sums of money for resource integration

At the end of 2014, the company passed the resolution of the shareholders' meeting, and will introduce strategic investors to the subsidiaries Neusoft Medical and Neusoft Xikang in the form of capital increase and share expansion. Investors, Goldman Sachs and other investors will spend 1.6 billion yuan to increase the capital of Neusoft Medical, and invested 1.133 billion yuan to buy the shares held by Neusoft Group. At the same time, Hony Capital and other investors will jointly invest $170 million in Neusoft Xikang. After the completion of the restructuring, Neusoft Group is still the largest shareholder of Neusoft Medical and Neusoft Xikang.

It is understood that this round of financing will refresh the largest single financing record in the domestic medical device field and Internet medical and health management, and Neusoft Xikang this round of financing is also one of the world's largest single financing in this field.

Third-party investment institutions such as Hongyi have no business competition, and their capital increase will help reduce financial pressure on the parent company. At the same time, Neusoft Group's access to funds can also increase the investment in big data, automotive electronics and other sectors.

Neusoft's medical sector can share the resources of medical and health industry with Hongyi and Goldman Sachs and form synergies. The medical health sector is Hongyi's key investment direction. It has been deployed in many aspects, such as investing in Yangsi Hospital, the largest private hospital in Shanghai. Goldman Sachs also has many investments in the medical industry worldwide. Neusoft Medical and Xikang are expected to share resources and create greater synergies.

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