1. Company profile and business overview
Global Healthcare is a listed company controlled by a central enterprise with health care as its main business. It was founded in 1984. It started as a financial leasing business. In 2017, it took advantage of the divestment of state-owned medical institutions to achieve a successful transformation into a “health care service enterprise integrating industry and finance.” In terms of shareholder background, the company's largest shareholder is General Technology Group, and Global Healthcare has ranked first in the group in net profit for 4 consecutive years. In terms of business development, the company is based on traditional finance and consulting business to provide stable and sufficient cash flow. The hospital group business has driven revenue growth in recent years. As of 23H1, the hospital group's share of revenue increased to 55%.
2. Finance and consulting business
On the asset side, the company's asset size has grown steadily and the quality is excellent. The 19-23H1 net interest-bearing asset CAGR is 11.01%, and the non-performing asset ratio has remained below 1% all year round. The average yield on interest-bearing assets has declined in recent years due to increased competition, but it is still strong above 7%. On the debt side, the average cost ratio of 23H1 debt increased to 4.33% due to the global interest rate environment. Looking ahead, under the downward trend in domestic interest rates, interest rates on the company's recent two corporate bonds were 3.2% and 3.25%, and the overall cost ratio is expected to decrease in 24 years.
3. Hospital group business
In terms of comprehensive medical business: In terms of volume, up to 23H1, the company had 64 medical institutions with 16,000 beds, and 9 projects under construction have increased by a total of 4,000 more beds. Eight of these projects will open in 23 or 24. In terms of price, 20-23H1's annualized single-bed revenue CAGR is 10.54%, reflecting excellent operating capabilities. In terms of policy, the “Work Plan to Support the High-Quality Development of State-owned Enterprise Medical Institutions” was released in February '23, which helps the company to give full play to the advantages of group operations.
In terms of specialty and health industry: The company's nephrology specialist and oncology specialist sectors continue to advance, and 23H1 has contributed 133 million yuan and 1.53 million yuan in revenue respectively. In addition, the company acquired Kaisxuanda, a leading domestic third-party maintenance company, in August '23, further complementing the entire equipment management service industry chain.
3. Profit forecast
The company's financial leasing business is expected to benefit from a relaxed interest rate environment, and the introduction of the hospital expansion business will also bring revenue growth. We expect the company's revenue in 2023-2025 to be 132.75, 154.22, and 17.488 billion yuan, respectively, with year-on-year growth rates of 11%, 16%, and 13% respectively. Net profit attributable to mother was 19.52 billion yuan, 22.50 yuan, and 2,532 billion yuan, respectively.