The company is a global ophthalmology chain medical institution. The company has developed a “1+8+N” strategic layout in China, and promoted the decline in high-quality medical resources. At the same time, with the implementation of the new 10-year strategy and the deepening of the internationalization strategy, the company's ability to integrate global resources continues to improve, and its leading position in the industry has been further stabilized.
Aier Ophthalmology has strong strength and is in a leading position in the ophthalmology medical service industry. The Aier Ophthalmology brand was founded in 2002. The business layout involves diagnosis and treatment of various ophthalmic diseases, surgery services and medical optometry equipment. Currently, the medical network covers mainland China, Hong Kong, Europe, the United States, and Southeast Asia, establishing a strategic pattern for global development; as of December 31, 2023, there are 875 Aier ophthalmic brand hospitals, ophthalmology centers and clinics worldwide; the domestic medical service network covers up to 30 provinces and cities, and is extended vertically through the “1+8+N” strategy to develop regional central hospitals to seize the rural market; overseas Through a “highland layout” strategy in key regions, medical technology is synchronized with the world. As of 2023, the company's overseas business accounted for 10.50%, and the overseas share will further increase in the future.
The policy encourages social medical treatment and creates a favorable development environment for private ophthalmology. As the reform of China's medical and health system continues to deepen, the government has proposed a number of policies to encourage the introduction of social capital in the medical field, creating a good development environment for private ophthalmology institutions, and private ophthalmology services are in full bloom; the market size of private institutions in the Chinese ophthalmology medical service market increased from 18.9 billion yuan in 2015 to 40.2 billion yuan in 2019, with a compound annual growth rate of 20.69%, and it is expected that it will continue to increase to 110.3 billion yuan in 2025. The demand for ophthalmology diagnosis and treatment has both consumer attributes and immediate demand attributes, and the market size is expected to grow further Expand.
The company's business model is highly replicable, and the scale effect is remarkable. The company relies on the “merger and acquisition fund+partner” model. The business model is highly replicable, and the first-mover advantage and scale effect are remarkable; the global integration of clinical, teaching, scientific research, and talent has been comprehensively promoted, and the company's development has formed a virtuous cycle.
Give it a “Highly Recommended” investment rating. We have long been optimistic about the company's leading position in the ophthalmology medical service industry, making all-round efforts throughout the ophthalmology life cycle, and continuing to expand its strategic layout. Against the backdrop of the flourishing ophthalmology medical service industry, our competitive advantage is expected to be further reflected. We expect the company's net profit to be 40.889/50.63/6.213 billion yuan respectively, up 22%/24%/23% year-on-year respectively. The current market capitalization corresponds to PE of 26.6/21.6/17.6 times, respectively. This is the first coverage, giving it a “Highly Recommended” investment rating.
Risk warning: risk of macro-environmental changes, risk of medical accidents, risk of hospital expansion falling short of expectations, etc.