Incident Overview

The company 24H1 achieved operating income of 10.55 billion yuan (yoy +2.9%), net profit of 2.05 billion yuan (yoy +19.7%), and realized net profit of 1.79 billion yuan (yoy +1.5%) after deducting net profit of 1.79 billion yuan (yoy +1.5%); 2024Q2 achieved revenue of 5.35 billion yuan (+2.3%) in a single quarter and net profit of 1.15 billion yuan (+23.5%); net profit after deducting non-return to mother of 0.94 billion yuan (- 6.4%). 24H1 achieved 7.9407 million outpatient visits (+9.2%); 0.6499 million surgeries (+6.92%).

The growth rate of business revenue in various sectors is under pressure in the short term

Looking at the 24H1 segment: refractive business revenue 4.16 billion yuan (+3.2%), gross profit margin 57.2% (-0.5pct); optometry business revenue 2.37 billion yuan (+3.1%), gross profit margin 56.0% (+0.7pct); cataract business revenue 1.74 billion yuan (+3.6%), gross profit margin 37.5% (+0.0pct); immediate business revenue 0.91 billion yuan (+4.8%), gross profit margin 40.9% (-0.3pct) ); Current business revenue 0.72 billion yuan (+5.1%), gross profit margin 30.7% (-0.1pct); other project revenue 0.62 billion (-7.5%), gross profit margin 39.6% (-0.0pct). According to the company's semi-annual report, 24H1 achieved domestic revenue of 9.24 billion yuan (yoy +1.7%); revenue of 1.3 billion yuan (yoy +12.3%) in China, Hong Kong, Macao, Taiwan and overseas. As of now, 24H1 had 140 overseas ophthalmology centers and clinics, gradually forming a global medical service network (23H1 was 124).

Investment advice

According to the company's latest semi-annual report, we lowered our profit forecast. It is estimated that the company's 2024-2026 revenue will be adjusted from 23.17, 26.93, and 31.21 billion yuan to 21, 24.08, and 27.47 billion yuan, corresponding growth rates will be 3.1%, 14.6%, and 14.1%, respectively; net profit to mother will be adjusted from 4.05, 5.01, and 6 billion yuan to 3.71, 4.32, and 5.07 billion yuan. The corresponding growth rates are 10.4%, 16.5%, and 27.47 billion yuan, respectively 17.2%, EPS was adjusted from 0.43/0.54/0.64 yuan to 0.40/0.46/0.54 yuan, corresponding to the closing price of 9.36 yuan/share on August 25, 2025, PE was 24/20/17X, respectively; maintaining the “buy” rating.

Risk warning

The pace of expansion is lower than expected; risk of medical malpractice or negative industry events; increased risk of industry competition; risk of industry policy.