Last week, we participated in the activity of clear Medical practice (01406.HK). During the activity, we participated in I) the 7-year-old, newly opened EVO ICL Premium Center, ii) newly renovated, 10-year-old TV center in the Huiyang Center, iii) the newly opened Children's nearsightedness Prevention and Control Center in The One. In the activity, 01406.HK reveals the latest and potentially fundamental changes in the direction of service development, while the latest services will become more comprehensive enough to cover the whole life cycle of customers from young to old.
Child examination, prevention and control services: clear Medicine (01406.HK) has been providing prevention and control services for children since mid-2023 in the Child nearsightedness Prevention and Control Center. The collection mainly provides inspection services and products that help children prevent and control nearsightedness at that time. It is worth noting that, unlike ophthalmology, students have a fixed demand for inspection, prevention and control services, usually at least once a year, so such services will be able to become a stable source of income.
Implantable eye implant: 01406.HK and STAAR Medical, the leading supplier of implantable eye implants, have jointly set up the first and only ICL eye care centre in Hong Kong at 7: 00, Mong Kok. As one of the future priorities of 01406.HK, we estimate that implantable eye implants will account for about 20% to 30% of the income of refractive treatment services, and the number of procedures performed each year will be able to increase to more than a thousand times or more. However, due to the high level of implantable eye implants, which limits the popularity of technology, more co-entrants into the market in the future are expected to reduce the market.
Getting out of the downturn is just around the corner: the second half of 2022 Univer 23 is a critical time for 01406.HK, and the number of SMILE surgery and other surgical procedures is a drag on the decline in revenue and the level of profit. Thanks to the launch of the EVOICL Premium Center and Child nearsightedness Prevention and Control Center, we feel positive about the transformation of future income sources. At the same time, we believe that the profit rate of the collection will further increase with the increase in implantable eye implants and SMILE?pro surgery. Therefore, we believe that the market will be able to get out of its current predicament and gradually return to growth and profitability.