Shima Ophthalmology is a leading private ophthalmology service group in the Greater Bay area, with brand influence driving sustained growth. Sima Ophthalmology is a private medical service group specializing in ophthalmology and dentistry in the Greater Bay area, founded by Dr. Lin Shunchao, one of the top 100 most influential ophthalmologists in the Asia-Pacific region. It provides ophthalmology and stomatology services in Hong Kong and other cities in the Greater Bay area, as well as layout of youth myopia prevention and control products. In 2022, the company achieved total operating income of 1.732 billion Hong Kong dollars (+ 55.67%), 2018-2022 CAGR 41.72%, gross profit of 187 million yuan (+ 21.21%) and gross profit margin of 23.2%. The performance still increased significantly under the influence of the epidemic. According to the income of private ophthalmology medical service institutions in 2020, Sima Ophthalmology (merging guest ophthalmology) ranked first in Hong Kong market share, with a market share of 12.5%. Sima Aikang has a good reputation and won the first place in the Shenzhen Medical Industry Service Public satisfaction Survey released by Shenzhen Health Commission in 2022.
Focusing on the market in the Greater Bay area, the multi-business lines are expanding rapidly.
The company actively expands its ophthalmology business and provides high-quality medical supply. as of August 2023, the company has established an ophthalmology and stomatology medical service network in the Greater Bay area, with a total of 70 medical service outlets.
In terms of ophthalmic services, the company has a total of 27 eye medical institutions in Hong Kong, 11 eye hospitals (including Fuzhou Sima Clinic) in the mainland, and 6 of the 11 inland cities in the Great Bay area. in the future, it will continue to expand to Sheshan, Zhongshan, Dongguan and other cities. Excellent ophthalmologists are important and scarce resources. as of June 2023, the company has 131 ophthalmologists, including 102 from the mainland and 29 from Hong Kong, accounting for 8.7% of the total number of registered doctors in Hong Kong. In dentistry, the Sima Ai Healthcare business recovered rapidly in the first half of 2023, with revenue up 194.9% from the same period last year. Dental services have become one of the major sources of income in the mainland. The company has 133 dentists and 233 dental chairs, and the chair efficiency reached 138000 / month in the first half of 2023, an increase of 192.3% over the same period last year. In terms of green control products, the company distributes the market of youth myopia prevention and control products through cooperation and mergers and acquisitions from 2021, and is expected to complete the listing of OK mirror and defocus mirror products by 2025.
The policy encourages the development of private medical institutions, and the background of Hong Kong capital adds advantages. Countries have promulgated a number of policies to encourage society to run medicine, emphasize eye health problems, and support Hong Kong-funded institutions to enter the mainland for development. As a Hong Kong-funded private ophthalmology & oral dual-material medical service group, taking advantage of the policy, the market has a broad prospect. Policies such as "Hong Kong and Macao Medicine and equipment" and "Health Care Voucher for the elderly" help companies to continue to give full play to their own advantages, build differentiated competitiveness, and improve the level of diagnosis and treatment and the ability to get customers.
In ophthalmic services, with the aging of the population and the increase in the rate of myopia under the high-frequency use of electronic products, the demand for consumer ophthalmology diagnosis and treatment is increasing; in stomatology services, national oral health problems are becoming more and more serious. health awareness promotes an increase in the demand for preventive diagnosis and treatment, and customs clearance in Hong Kong and Shenzhen promotes the increase in the number of patients in Hong Kong, which is expected to achieve sustained growth.
Investment advice: cover for the first time and give an "overweight" rating
The company provides a broad development space for the private ophthalmology medical strength brand in Dawan area, the vigorous demand of ophthalmology medical service market and the shortage of high-quality medical resources. In addition to ophthalmology business, the company actively layout dentistry, double business lines are expected to open up the company's business growth space. We are optimistic about the possibility of high business growth brought about by the company's layout of ophthalmology and dentistry. It is expected that the company will achieve total operating income of HK $1929, 2189, 2460 million in 2023-2025, with a year-on-year increase of + 11%, 14%, 12%, and net profit of HK $5779, 106 million, and + 358%, 40%, 34%, corresponding to PE 83, 6044x. Coverage for the first time, giving a "overweight" rating.
Risk hint
The risk of policy change; the regional expansion is less than expected; the growth of mainland hospitals is not as expected; the listing progress of green control products is slow.