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弘和仁爱(3869.HK)新股认购

Honghe Renai (3869.HK) subscribe for new shares

廣發證券(香港) ·  Mar 1, 2017 00:00  · Researches

The Group operates and manages hospitals and provides medical services including diagnosis and treatment of common diseases, frequently occurring diseases and chronic diseases. Currently manages Yang Si Hospital, and owns and operates Fuhua Hospital. According to Frost Sullivan's report, Young Hospital is the largest non-public hospital in Shanghai by 2015 revenue.

Application scores and opinions

The group derives its income from hospital management services and manages two hospitals, both of which are located in the Pudong New area of Shanghai. The first is Yang Si Hospital, a second-class non-public non-profit general hospital. Fuhua Hospital is a non-public for-profit general hospital with a first-class scale. In 2015, Yang Sijie's total number of outpatients and inpatients accounted for 14.7% and 10.7% of all non-public hospitals in Shanghai. As for Fuhua Hospital, it is a hospital that provides clinical nursing and rehabilitation services. The demand for medical services in non-public hospitals in the mainland is expected to increase, and the market size of non-public hospitals is expected to rise from 203.6 billion yuan in 2015 to 549.9 billion yuan in 2020. The company expects to earn no less than 19.3 million yuan in 2016 and no less than 0.15 yuan per share. Earnings fell in 2016, mainly due to the company's granting of stock options to senior management members and increased listing expenses. Excluding listing fees, earnings in 2016 are estimated to be 36 million yuan, with a price-to-earnings ratio of 42 to 49 times earnings, higher than 27 times for the industry. To sum up, the company was given a "neutral" rating with a total score of 6.

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