Key dates:
Public offering deadline: January 8, 2018 at 12:00 p.m.
Public Notice Application Results: January 12, 2018
Listing date: January 15, 2018
Recommended person for exclusive insurance:
China Merchants Securities (Hong Kong) Limited
Statistical data summary:
Number of shares offered: 197,000,000 shares
Share of shares offered in Hong Kong: 10.0%
Offer Price: HK$2.35 to HK$2.90
Estimated amount raised: HK$463 million to HK$571 million
Admission fee per lot: HKD 5,858.45
Group Overview
The group is one of the ophthalmology service providers in Hong Kong and Guangdong Province. It was founded under the “Himalin Shunchao” brand. The Group provides comprehensive eye care, diagnosis, drug treatment and surgical treatment services through the Hong Kong Ophthalmology Service Network and Ophthalmology Hospitals operated by Shenzhen Xima Hospital and Beijing Xima Hospital.
Specifically, the group's ophthalmologists and Chinese physicians are specialized in operations related to (a) cataracts and intraocular lens implants, (b) refractive correction, (c) corneal and ocular surface diseases, (d) glaucoma, (e) vitreoretinal diseases, (f) ocular plastic surgery and orbital diseases, and (g) strabismus and pediatric ophthalmology. On the other hand, the Group's services can be classified into (i) basic examinations, (ii) diagnosis, (iii) special tests, (iv) treatment and outpatient surgery, (v) drug prescriptions and optometry, and (vi) surgical treatment.
Industry Overview
According to the Frost & Sullivan report, from 2012 to 2016, revenue from the Hong Kong private ophthalmology services market increased from $2.8 billion to HK$3.5 billion, with a compound annual growth rate of 5.4%; the report predicts that market revenue will reach HK$4.8 billion by 2021; furthermore, revenue from the Chinese private ophthalmology services market will rise from RMB 6.4 billion in 2012, with a compound annual growth rate of 21.7%, to RMB 141 billion in 2016; reported revenue from the private ophthalmology services market, reaching 328 billion yuan in 2021 RMB billion .
Dangerous
The Group's business is highly dependent on the reputation of Dr. Lam Shun-chiu, Chairman, Chief Executive Officer and Executive Director. Any negative publicity and accusation against Dr. Lam Shun-chiu by the media can have a significant adverse impact on the Group's operating performance and business prospects. Additionally, the Group is at risk of facing claims relating to medical incidents, medical negligence or misconduct, and allegations that the ophthalmology services provided by the Group are flawed. A group may not be able to avoid medical accidents, medical negligence, or misconduct.
valuations
According to the prospectus, as of June 30, 2017, calculated on the basis of 1.0 billion shares to be issued immediately after the completion of the share sale, the total dividend declared on September 30, 2017 was HK$100 million, equivalent to an unaudited and adjusted net tangible asset value of HK$0.56 to HK$0.66 per share.
