Under the epidemic, revenue grew steadily and profit margins continued to improve: as of December 31, 2020, the annual operating income was about HK $473.82 million, an increase of about 10.3% over the same period in 2019, and the net profit was about HK $64.07 million, an increase of about 1836.3% over the same period in 2019. The realized non-return net profit was about HK $70.6 million, an increase of about 40.4% over the same period in 2019, and the non-return net interest rate was about 14.9%, an increase of about 3.2 pct over the same period in 2019.
Reduce customer acquisition costs, improve customer acquisition efficiency, promotion and quality services jointly drive traffic growth: in 2020, the company optimized the consultation triage model by building consulting service centers for middle and high-end people, reducing customer acquisition costs and improving the input-output ratio of marketing expenses. Make use of market leadership and brand effect to focus on long-tail customers and improve marketing transformation efficiency. At the same time, go deep into the offline market, actively cooperate with Aikang Medical Group and other companies to set up a joint outpatient center, making use of the large flow of the physical examination center to further enhance brand awareness. At the surgery center, the company continues to focus on lens replacement, enhance customer service experience, establish word-of-mouth among middle and high-end customers, and radiate more potential customers through word-of-mouth among guests.
Optimize capacity allocation and improve operational efficiency, and economies of scale are expected to be further improved: each operation center of the company has an average of 1-3 operating rooms and is equipped with two surgeons. according to the group's estimates, when the capacity utilization rate reaches 100%, on average, each operating room can perform about 20 operations a day. The company completed a total of 21640 operations in 2020, accounting for 23.2% of the total effective production capacity, while Q4 achieved an effective utilization rate of 28.7% of the total production capacity in the same period. In the future, the company will also improve the efficiency of the existing turf through the construction of a new outpatient center, transfer services such as preoperative examination and review, and improve the effective utilization of existing capacity by increasing the number of operation days. In addition, the company focuses on high-end customer groups, the overall customer unit price is higher than the industry average. In the future, the overall income and profit margin will develop well under the situation of two-way increase of passenger unit price and passenger flow.
Our point of view: the company achieved two-way positive growth in revenue and net profit in 2020 under the influence of the epidemic, which proves the company's outstanding operational ability. Through the construction of consulting service centers, diversified offline cooperation and outpatient center service transfer, online and offline synchrotron radiation, optimizing the customer acquisition structure, the company will further improve the net interest rate and maintain rapid development in the future. Based on the closing price on March 24, 2021, the company's Bloomberg unanimously forecast that it should pay "active attention" to the price-to-earnings ratio of 47.2 times 2020.
Risk hint: the epidemic repeatedly affected the traffic at home and abroad, the passenger flow was less than expected, and the opening of new stores was not as expected.
