occurrences

The company released its 2024 semi-annual report, with operating income of 2.051 billion yuan (YoY +2.85%) and net profit of 0.265 billion yuan (YoY -25.15%).

National chain layout to consolidate scale effects

As a large-scale ophthalmology medical chain group with a major domestic market position, the company has initially established a nationwide chain of diagnosis and treatment service systems. As of 2024H1, the company has opened 61 ophthalmology hospitals and 65 optometry centers in 18 provinces, municipalities directly under the Central Government and 49 cities across the country, covering large regions such as East China, Central China, South China, Southwest China, North China, etc., and has established a nationwide diagnosis and treatment service network system through a chain operation model.

Consolidate the dominant position in various dimensions such as annual number of patients treated, number of ophthalmic surgeries, and income.

Consumer ophthalmology supports steady revenue growth

The consumer ophthalmology business is driving steady revenue growth. 2024H1 refractive project revenue 0.694 billion yuan (YoY +6.56%), gross profit margin 54.98%; comprehensive ophthalmology project revenue 0.497 billion yuan (YoY +4.56%), gross profit margin 46.32%; cataract and eye disease business growth rate is relatively slow, cataract project revenue 0.465 billion yuan (YoY -6.53%), gross profit margin 37.03%; post-eye project revenue 0.262 billion yuan (YoY -5.13%), Gross profit margin 41.30%.

Profit Forecasts, Valuations, and Ratings

We expect the company's revenue for 2024-2026 to be 4.363/4.865/5.473 billion yuan, with year-on-year growth rates of 8.71%/11.51%/12.50%, and net profit to mother of 0.597/0.717/0.846 billion yuan, respectively, with year-on-year growth rates of -10.42%/20.20%/18.03%, and EPS of 0.71/0.85/1.01 yuan/share respectively. Maintain a “buy” rating.

Risk warning: risk of expansion falling short of expectations, risk of uncertain policies, risk of increased industry competition