Incident 1

On October 17, 24, the company announced that it intends to acquire 100% of the shares of Chongqing Xinmileage Medical Management Co., Ltd. with its own funds or self-financing, at a consideration of 0.32 billion yuan.

Incident 2:

On December 24, '24, Xinmileage Health Technology Group Co., Ltd. and Xinmileage Health Industry Group Co., Ltd. signed the “Acquisition Framework Agreement on Dongying Xinmileage Geriatric Hospital Co., Ltd.” to acquire 60% of the shares of Dongying Xinmileage Geriatric Hospital Co., Ltd.

Reviews:

Chongqing's new milestone: The price is reasonable. According to the announcement, the performance of its hospitals is growing steadily. According to the announcement, based on 2023 revenue, the acquisition of PS 1x is reasonable. Chongqing Xinmileage includes 10 medical service providers, 1 hospital management agency, and 1 partnership platform with a total of 12 entities, with a total number of beds over 1,000, revenue of 0.315 billion yuan in 23 years, net profit of 4.05 million yuan, revenue of 0.204 billion yuan and net profit of 9.99 million yuan from January to July 24, and accelerated profit release.

Dongying's New Milestones: Geriatric Hospital Industry Benchmark, Excellent Asset Quality

According to information disclosed by the company, Dongying Xinmileage Geriatric Hospital is a third-level geriatric hospital with a total of 500 medical+nursing beds. From 2017 to 2023, the hospital achieved six consecutive years of double-digit revenue growth, with a compound revenue growth rate of more than 20%; the estimated 2024 revenue is 0.26 billion yuan, net profit is 20 million yuan, and the asset quality is excellent. Under the trend of population aging, we expect demand for the integrated medical care model of geriatric hospitals and geriatric care centers to continue to increase in the future, and the company is expected to lead the industry in the field of medical services for the elderly.

Investment advice

It is estimated that 2024-2026 will achieve operating income of 4.098/4.848/5.479 billion yuan, or +14.1%/18.3%/13.0% year over year; net profit to mother of 0.117/0.256/0.334 billion yuan, +280.4%/118.5%/30.5% year over year; maintain a “buy” rating.

Risk Alerts

Industry competition increases risks, asset injections fall short of expectations, hospital bed climbing falls short of expected risks, etc.