Hima Ophthalmology (3309) mainly provides professional one-stop ophthalmology treatment and surgery services. It has Hong Kong as its headquarters and is actively expanding the mainland market. Upgrading consumption in the mainland will help drive demand for specialized medical care. Coupled with the opening of the Hong Kong-Zhuhai-Macao Bridge and high-speed rail, it will help increase the flow of people in the Greater Bay Area and bring more opportunities. The group announced at the end of last month that it had acquired a commercial site in Pingshan District, Shenzhen for RMB 209 million (equivalent to RMB 330 million). The total site area is 4,958.41 square meters, and the total planned construction area is 20,000 square meters. The group plans to use the land to establish a new ophthalmology hospital and as the group's headquarters in the Guangdong-Hong Kong-Macao Greater Bay Area.
The group completed the acquisition of Kunming Ophthalmology Hospital in March last year and fully opened in June 2019, which helped the group establish a service network in southwest China. Furthermore, the group completed the acquisition of all shares in Shanghai Luxide Medical at the end of September 2019, thereby further expanding its business in Shanghai. With the opening of the first ophthalmology hospital in Huizhou, Guangdong, ten additional medical rooms and three operating rooms will be provided.
The performance of Kyoto Ophthalmology Hospital can be expected to improve
In the first half of 2019, mainland business revenue increased by 42.6% year-on-year to $130 million, accounting for 49% of total revenue, an increase of 1.7 percentage points year-on-year; the growth rate of the mainland market was higher than that of the Hong Kong market. During the period, the average cost of surgery in the Mainland increased by 4.6% year-on-year to $15,630. During the period, Beijing Ophthalmology Hospital's revenue rose 165.3% year-on-year to 25.1 million yuan. Although it recorded a loss of 3.9 million yuan during the period, it narrowed compared to the loss of 17.6 million yuan in the same period in 2018; it is expected that the profit expression of Beijing Ophthalmology Hospital will further improve. In the first half of 2019, the Group's revenue was 265 million yuan, up 37.6% year-on-year, net profit increased 1.8 times to 33.76 million yuan, while adjusted net profit also increased 1.36 times to 33.13 million yuan.
In terms of trend, stock prices have been rampant and consolidated over the past two months, and the MACD bullish gap has narrowed. However, the STC%K line has rebounded to be close to the %D line. It is advisable to absorb 4.8 yuan lower, rebound resistance is 5.7 yuan, and continued holding without falling below 4.5 yuan. (The author is a CSC licensee and does not hold any interest in the above shares)
