Nomura has released a research report that lowers Hygeia Health's (06078.HK) revenue forecast for the next two years by 3.3% and 5.5%, and profit forecast by 0.6% and 14.1%, respectively, which is lower than the market's general expectations. This is mainly due to the slower-than-expected improvement in operational efficiency and medical capabilities of newly built and acquired hospitals, as well as the expected increase in operating expenses from mergers and integration.

In response, Nomura has lowered Hygeia Health's target price from 58.2 yuan to 50.7 yuan, and points out that its current price corresponds to a forecasted PE ratio of about 17.1 times and 13.7 times for the next two years, which is more attractive. Therefore, the rating remains at "buy".

As for the mid-term performance, the bank predicts that Hygeia's revenue for the first half of the year will increase by 50.6% year-on-year, and net profit is expected to increase by 25.5%. It is believed that due to the lower base last year and the integration of new hospitals, the first half-year performance is expected to hit a new high.