nobonuscasino| Zhiyun Health (9955.HK): P2M strategy drives value reshaping, achieving single-quarter profit and accelerating growth

This yearNobonuscasinoAs speeding up the development of new quality productive forces has become the first important task of the government, digitization as a strong driving force to cultivate new quality productive forces, many enterprises have accelerated the transformation, trying to occupy the first opportunity in this general trend.

In such an environment, Zhiyun Health is an enterprise worthy of attention because of its leading attitude in the field of digital chronic disease management.

On the one hand, Zhiyun Health's recent turnover in the capital market has increased significantly, and its activity has increased significantly. According to Futu Niuniu data, its average turnover in the nearly seven trading days reached about HK $88.98 million by the close of trading on May 20, making it increasingly attractive in the capital market. On the other hand, its latest financial report shows that its Q4 realized a net profit of more than 10 million yuan in 2023 and turned a loss into a profit in a single quarter. All kinds of performances confirm the attention of the capital market to its value and potential, as well as its commercial achievements in digital integration.

You might as well further explore what Zhiyun Health has done right?

Behind the positive trend of each data, the company's business model undoubtedly plays a vital role, and an excellent development strategy is the core driving force for enterprises to achieve sustained profit growth.

At first, Zhiyun Health successfully constructed the AIM (Touch, deployment, commercialization) model based on the strategy of "hospital first". Relying on the independently developed hospital SaaS system (Zhiyun Medical Huihui SaaS) and drugstore SaaS system (Zhiyun consultation SaaS), as well as advanced Internet hospital platform, the company can provide users with a comprehensive solution from inside to outside the hospital, and greatly improve the medical ecological efficiency.

At present, Zhiyun Health has established an extensive channel network covering more than 2700 hospitals and nearly 220000 drugstores across the country (accounting for about 1/3 of the total number of drugstores in China), which not only demonstrates the company's strong strength in the construction of large-scale SaaS network, but also highlights its leading edge in the process of digital transformation.

On this basis, Zhiyun Health further optimizes its strategic positioning and explores the development model of P2M (from patient to industry). Through strategic cooperation with high-quality pharmaceutical companies, relying on the layout of infrastructure inside and outside the hospital, the sales company has ownership, sales rights or other exclusive rights of its own products, achieving an efficient docking from patient needs to industrial production.

On the one hand, the continuous upgrading and optimization of P2M strategy can improve the response speed of the supply chain and thicken the profit level of the company. On the other hand, it also shows its leadership in the field of digital chronic disease management, which provides a useful reference for the digital transformation of the whole medical industry.

In addition, in April this year, Zhiyun Health also launched its first digital employee, liberating traditional personnel from complicated tasks through the combination of high efficiency of science and technology and operational wisdom, comprehensively improving the efficiency of O2O operation services, and helping drugstores to achieve the goals of increasing income, reducing costs and improving efficiency.

With the rapid development of the strategy, the current Zhiyun Health P2M pipeline is widely involved in many fields, such as central nervous system, oncology, metabolism, anti-allergy and anesthesia, respiratory disease, rare disease and so on, with a total of 16 unique and scarce self-operated drugs. and the market scale is more than 10 billion yuan.

It is reported that the pipeline company has four self-operated products into the market, is continuing to bring revenue contribution. These include Hetangjing ®dagrejing tablets (a first-line drug for improving blood glucose control in adult patients with type 2 diabetes and have shown great potential in fat loss and weight loss), Sveram dry suspension ®(first-line drug for hyperphosphatemia), the original drug isujialin ®(for mild vascular dementia and improving symptoms of Parkinson's disease), and Buxu Tongyu granule.

It is particularly worth mentioning that since the blockbuster products and Tangjing ®Dagrid went on sale nationwide in March this year, they have rapidly covered 15 provinces, including Shanghai, Shandong, Jiangsu and Henan, and cooperated with nearly 2000 medical institutions in a short period of two months.

Recently, the country's first online prescription for Hetang Jing ®Daglejing tablets has also been successfully issued on the Zhiyun Internet Hospital platform, marking not only that this efficient and economical new hypoglycemic drug has officially entered clinical application, but also provides a more cost-effective treatment option for patients with type 2 diabetes.

In terms of market size, public data show that the sales of Chinese Dagrid net films in 2023 are about 7 billion yuan, and it is expected to be close to 10 billion yuan in 2024. At present, the main companies in the domestic market that can sell Daglejing tablets are AstraZeneca (original research drug Andatang ®), Jiangsu Hausen (Fulaida ®) and Zhiyun Health (and Tangjing ®).

Based on this, Zhiyun Health estimates that in 2024, Hejing ®Dagrid net film is expected to contribute more than 100 million to the company's revenue and more than 10 million in profits.

Another Sveram Carbonate dry suspension (a first-line drug for hyperphosphatemia) is the first dry suspension on the market, and it is predicted that other similar products that meet the specifications for clinical use will not be approved until the end of 2025, which means that in the next two years, Sveram Carbonate dry suspension will maintain its market monopoly.

At present, Zhiyun Health has obtained the exclusive general distribution right of this drug for as long as 10 years, and has the leading say in the price of the national negotiation. This strategic layout is expected to bring significant performance growth for the company and become a major driving force for the company's profits.

Finally, from the perspective of investors, the current recovery in the market level has created favorable conditions for the improvement of the valuation of companies in the industry.

Industry insiders have observed that the recent market situation in the Hong Kong stock market has spread from pure pursuit of performance to a wider range of areas, indicating that investors are getting rid of bear market thinking about the investment logic of the Hong Kong stock pharmaceutical sector. Yang Song, chief analyst of Tianfeng Securities Pharmaceutical Industry, is optimistic about the overall investment prospects of the pharmaceutical sector in 2024, believing that the sector will usher in new growth opportunities.

In terms of valuation, Zhiyun Health, as the leader in the digital chronic disease management track, its share price is still in a historically low range with limited downward momentum. According to Futuo Niuniu data, Zhiyun Health currently has a price-to-book ratio (PB) of 1Nobonuscasino.00 times, the market valuation of the company is relatively conservative, it has a high margin of safety, and the market-to-sales ratio (PS) is 0.51 times, which is much lower than the industry average.

The author believes that with the active promotion of industry policies and the combined effect of other factors, the company's liquidity is expected to be further enhanced. At the same time, as Zhiyun Health begins to enter a single-quarter profit stage, under the P2M strategy, the company's various scenarios will also coordinate with each other to bring stable cash flow and profits, achieve continuous fulfillment at the performance level, and have market revaluation potential.

In this regard, professional brokerage institutions have also given positive expectations for Zhiyun Health's subsequent profit growth.

For example, CICC released a research report stating that Zhiyun Health's management publicly stated that the company's resource investment in 2023 will focus on the hospital sector, and it is expected that the P2M business will gradually expand into the pharmacy field starting from 2024. The bank expects that as the scale of P2M business expands, Zhiyun Health's profit level is expected to further improve.

Hua 'an Securities' first coverage research report also gave the company a "buy" investment rating. It is estimated that its revenue from 2024 to 2026 will be 48.3/61.3/77.3 billion yuan respectively, a year-on-year increase of 30.8%/27.0%/26.1% respectively; The net profit attributable to the parent is-0.4/0.03/0.66 billion yuan respectively; the adjusted profits are 0.45/1.5/340 million yuan respectively.

It can be judged that Zhiyun Health's performance is bursting with strong growth momentum, and it is believed that its share price is expected to gradually reflect its true intrinsic value.