Investment Overview
- The core financing and leasing business is growing rapidly;
- The prospects for hospital management and operation are bright;
- The unique background of state-owned enterprises provides excellent medical resources.
Company Overview
Global Healthcare is China's leading provider of integrated medical services. The company achieved operating revenue of 2.7 billion yuan and 1,653 million yuan separately in 2016 and the first half of 2017, an increase of 23% and 32% over the previous year, and net profit of 872 million yuan and 578 million yuan, an increase of 32.5% and 48.6% over the previous year. The company provides three types of services, including (1) medical equipment financing and leasing, the company's core business (accounting for 72% of revenue in the first half of 2017); (2) medical industry, equipment, and loan consulting services (accounting for 21% of revenue); and (3) department upgrade services (accounting for 5% of revenue). Thanks to its central enterprise background, strong medical resource platform, and efficient and professional management team, the company has achieved rapid development in recent years. The average annual compound growth rate of revenue and net profit in 2012-2016 reached 46% and 48.9%, respectively.
A favorable external environment fosters development. As the aging of the population increases and per capita income rises, the Chinese government places more and more emphasis on developing the medical industry. The State Council Office issued the “Notice of the Office of the State Council on the Issuance of the National Health and Hygiene Service System Plan (2015-2020)” in 2015, which proposed the target number of hospital beds per thousand people, that is, from 4.55 per thousand in 2013 to 6 per thousand people in 2020, and the number of beds per 1,000 people in district districts to 1.80 per thousand people. We believe that the market demand from hospital renovation and expansion, introduction of new technology and equipment, and financing will be huge in the future.