A global market leader in ophthalmology services, the company that continues to enhance its brand influence is the world's leading professional ophthalmology medical chain. By the end of 2023, there were 881 branded hospitals, ophthalmology centers and clinics worldwide, and the medical network covered mainland China, Hong Kong, Europe, the United States, Southeast Asia and other regions. The company's brand reputation has accumulated over many years. In 2023, the number of outpatient visits exceeded 15 million, and the number of surgeries exceeded 1 million. The company is focusing on improving the hierarchical chain model, and the business layout continues to expand. As demand for ophthalmology services continues to expand, the long-term development prospects are positive. We expect the company's net profit to be 3.808/4.256/4.916 billion yuan in 2024-2026, respectively. The current stock price corresponds to PE 35.0/31.3/27.1 times, respectively. This is the first coverage, giving it a “buy” rating.

Promoting the “1+8+N” strategic layout and leveraging the advantages of the hierarchical chain network system, the company is focusing on building 1 world-class ophthalmology center (Changsha Aier), 8 national and regional ophthalmology medical centers (Beishang Guangshen, Chengdu, Chongqing, Wuhan, Shenyang), and N provincial first-class and region-leading ophthalmology hospitals. Flagship hospitals in the company's central city are developing steadily, and Aier Eye Hospitals in Changsha, Wuhan, Chengdu, Liaoning, Chongqing, Guangzhou, Dongguan, Shenzhen and other places have maintained relatively rapid growth. In 2023, the company's domestic hospitals reached 256 and the number of outpatient departments reached 183, and the medical network in all provinces, regions, counties and cities continued to improve.

The large number of myopic people and the gradual deepening of aging are driving the rapid growth of China's ophthalmology market. According to consulting data, the size of China's refractive index market is expected to rise year by year from 5.9 billion yuan in 2015 to 72.5 billion yuan in 2025, with a compound growth rate of 28.51%. According to the National Administration for Disease Control and Prevention, the myopia rate among children and adolescents in China reached 51.9% in 2022. This situation is driving the rapid growth of the optometry services market. According to Insight Consulting, China's medical optometry market reached 22.8 billion yuan in 2019. With the further increase in consumer demand for professional optometry and optometry services, the market size is expected to exceed 50 billion yuan by 2025. As the aging of China's population gradually deepens, Insight Consulting predicts that the number of cataract patients will exceed 0.15 billion in 2025. Although China's cataract CSR level has increased significantly in recent years, compared to other major economies in the world, China's CSR ratio is still low, and there is plenty of room for improvement.

Risk warning: medical risk, management risk, brand licensing risk, litigation arbitration risk, etc.