Investment Rating - The report initiates coverage of Topchoice with an Underweight (UW) rating and a price target (PT) of Rmb34 for December 2025 [1][8][23]. Core Insights - The dental services industry in China is facing both short- and long-term challenges, leading to profitability pressure for Topchoice. The company's earnings per share (EPS) estimates for FY25 and FY26 are projected to be 8% and 10% below consensus, respectively [1][8][21]. - Topchoice's revenue is heavily reliant on Zhejiang Province, which accounts for 90% of its total revenue, raising concerns about geographical concentration and expansion momentum [5][8][21]. - The report highlights that the dental services market is fragmented, with only about 3% of dental institutions operating as chains, limiting pricing power and growth potential [5][28][33]. Summary by Sections Company Overview - Topchoice operates 84 medical facilities and has approximately 3,100 dental chairs as of Q3 FY24 [1][8]. - The company has seen flat revenue growth from FY21 to FY24E, with a projected compound annual growth rate (CAGR) of 10% from FY24 to FY27 [5][8]. Financial Performance - Revenue for FY23 was Rmb2,847 million, with projections of Rmb2,938 million for FY24 and Rmb3,125 million for FY25 [7]. - The adjusted net income for FY25 is estimated at Rmb538 million, reflecting a growth of 7% from FY24 [7]. Market Dynamics - The dental services market in China is projected to grow at a CAGR of 7% from 2024 to 2028, reaching Rmb193 billion, but has faced fluctuations in revenue growth due to the pandemic and economic conditions [30][28]. - The report notes that the average price of dental implants has decreased significantly due to government-led procurement policies, but the expected increase in demand has not materialized as anticipated [45][50]. Valuation - The report uses a discounted cash flow (DCF) model to arrive at the price target of Rmb34, assuming a weighted average cost of capital (WACC) of 12% and a terminal growth rate of 2.5% [9][23][25]. - Topchoice's current P/E ratio of 35.5x for FY25 is considered a premium compared to peers, which raises concerns about the sustainability of such valuations given the company's growth outlook [21][8]. Risks and Challenges - The report identifies several risks, including the company's reliance on a single geographic region, challenges in expanding outside Zhejiang, and the competitive landscape of the dental services market [5][21][28]. - The orthodontics segment is also under pressure, with declining treatment volumes and a shift towards more cost-effective options among consumers [54][61].

Investment Rating - The report initiates coverage on Tongce Medical with a "Reduce" rating and sets a target price of 34 CNY by December 2025 [1][3][7]. Core Insights - The oral healthcare service industry faces both short-term and long-term challenges, leading to pressure on profitability. The earnings per share (EPS) forecasts for 2025 and 2026 are 8% and 10% lower than market consensus, respectively [1][4][7]. - Tongce Medical's revenue is heavily reliant on Zhejiang Province, with 90% of its income generated from this region. The company has struggled with slow expansion outside the province and lower profitability in those areas [4][7][19]. - The report highlights that the industry is fragmented, with only about 3% of dental institutions operating in a chain model, limiting pricing power. Additionally, weak consumer spending has reduced demand for high-margin orthodontic and implant services [4][24]. Summary by Sections Company Overview - Tongce Medical operates 84 medical institutions and has approximately 3,100 dental chairs as of Q3 2024 [1][7]. - The company was founded in 1995 and is one of the leading dental chains in China [7]. Financial Projections - Revenue is projected to grow from 2,847 million CNY in FY23 to 3,125 million CNY in FY25, with a compound annual growth rate (CAGR) of 10% expected from 2024 to 2027 [6][13]. - Adjusted net profit is forecasted to increase from 500 million CNY in FY23 to 609 million CNY in FY26 [6][13]. Market Dynamics - The report anticipates a 7% CAGR for the domestic oral healthcare service market from 2024 to 2028, reaching 193 billion CNY [25][29]. - The market has seen a decline in growth rates due to the pandemic and changing consumer behavior, with a CAGR of only 0.5% from 2019 to 2023 [25][29]. Competitive Landscape - The report notes that the private sector dominates the oral healthcare market, accounting for over 70% of total revenue, with approximately 92.5% of dental institutions being privately operated [30][31]. - The competitive environment is characterized by price sensitivity among consumers, leading to increased competition from smaller clinics [24][25]. Valuation and Risks - The report finds Tongce Medical's valuation at approximately 35.5 times the expected 2025 earnings, which is considered high compared to peers [19][21]. - The report suggests that the company's growth visibility is low, making the premium valuation unjustifiable [19][21].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [5][11]. Core Insights - In 2024, the company achieved a revenue of 2.874 billion RMB, a year-on-year increase of 0.96%, and a net profit attributable to shareholders of 501 million RMB, up 0.20% year-on-year [2]. - The company's planting business showed robust growth, with revenue reaching 530 million RMB, a 10.60% increase year-on-year, benefiting from increased demand due to price reductions in dental implants [3]. - The company is advancing its digital transformation, enhancing operational efficiency through AI and refined management practices [4]. Financial Performance Summary - The company reported a revenue of 2.874 billion RMB in 2024, with a growth rate of 0.96% [9]. - The net profit attributable to shareholders for 2024 was 501 million RMB, reflecting a growth rate of 0.19% [9]. - The earnings per share (EPS) for 2025 is projected at 1.20 RMB, with a corresponding price-to-earnings (P/E) ratio of 33 [5]. Business Segment Analysis - The planting business accounted for 19.39% of total revenue, with a significant increase in demand due to price adjustments [3]. - The orthodontics segment saw a revenue decline of 5.05%, while pediatric and restoration services remained stable, indicating the essential nature of dental care [3]. - The company expanded its regional presence with the addition of 3 new branches, bringing the total to 44, which has improved operational efficiency [3]. Future Projections - The company expects net profits to grow to 537 million RMB in 2025, 574 million RMB in 2026, and 610 million RMB in 2027, with respective growth rates of 7%, 6.82%, and 6.35% [5][9].

Core Viewpoint - Tongce Medical reported a net profit of RMB 501.43 million for 2024, reflecting a year-on-year increase of 0.2%, with total operating revenue reaching RMB 2.874 billion, up 0.96% from the previous year [14][33]. Company Overview - Tongce Medical is a leading enterprise in China's dental medical service sector, focusing on a "clinical, research, and teaching" integrated strategy to strengthen its market position [8]. - The company plans to accelerate its national expansion through a combination of self-built facilities, acquisitions, and franchising [8]. Industry Market Analysis - The dental industry market size is expected to exceed RMB 260 billion in 2024, driven by factors such as aging population, consumption upgrades, and technological advancements [5]. - Over 90% of dental institutions are privately owned, with a concentration in first-tier cities and coastal regions, while third- and fourth-tier cities are emerging as new growth points due to rising incomes and health awareness [5]. Industry Development Trends - Rapid chain expansion is observed, with leading companies like Tongce Medical adopting a "regional general hospital + branch" model to penetrate lower-tier markets [6]. - The adoption of digital diagnosis and treatment technologies, such as 3D printing and AI-assisted diagnostic systems, is increasing, enhancing accuracy and reducing labor costs [6]. - There is a growing demand for high-end services, such as teeth whitening and invisible orthodontics, contributing to increased customer spending [7]. - The industry is witnessing a shift towards integrated services covering prevention, treatment, and maintenance, particularly in pediatric and geriatric dental care [7]. Financial Performance - In 2024, the company achieved a total outpatient volume of 3.5334 million, with a net profit margin of 40.14% based on the proposed cash dividend distribution of RMB 4.5 per 10 shares [14][34]. - The company’s total share capital as of December 31, 2024, was 447,289,117 shares, with a proposed total cash dividend of RMB 201.28 million [34]. Operational Model - The company employs a "regional general hospital + branch" operational model, establishing a multi-tiered medical network to enhance resource utilization and patient accessibility [8]. - A "medical smart platform" is being developed to improve procurement efficiency and standardize management processes [9]. Supply Chain and Sales Model - The company is implementing intelligent procurement and standardized processes to enhance supply chain efficiency [9]. - A digital-driven customer lifetime value management approach is being adopted to improve patient retention and service personalization [10]. Profit Distribution Plan - The proposed profit distribution plan includes a cash dividend of RMB 4.5 per 10 shares, subject to approval at the annual shareholders' meeting [34][36].

公司拟继续聘请中汇会计师事务所（特殊普通合伙）担任公司2025年度财务和内部控制审计机构，聘期 一年，包括对公司及子公司的审计。 具体内容详见公司同日在上海证券交易所网站（www.sse.com.cn）披露的《通策医疗股份有限公司关于 续聘会计师事务所的公告》。 表决结果：7票同意；0票弃权；0票反对。 本议案在提交董事会前已经公司第十届董事会审计委员会2025年第一次会议审议通过，尚需提交公司 2024年年度股东大会审议。 10、审议通过《通策医疗股份有限公司关于召开2024年年度股东大会的议案》； 公司决定召开2024年年度股东大会，具体会议地点、日期、议程及登记方式等另行通知。 表决结果：7票同意；0票弃权；0票反对。 11、审议通过《通策医疗股份有限公司关于制定〈市值管理制度〉的议案》； 公司制定《市值管理制度》，进一步规范公司市值管理行为，提升公司投资价值，维护公司与投资者的 合法权益。 表决结果：7票同意；0票弃权；0票反对。 12、审议通过《通策医疗股份有限公司对会计师事务所2024年度履职情况评估报告》； 14、审议通过《通策医疗股份有限公司关于确认其他权益工具公允价值变动的议案》； 具体内容 ...

Core Insights - The company reported a revenue of 2.874 billion yuan for 2024, reflecting a year-on-year increase of 0.96%, and a net profit attributable to shareholders of 501 million yuan, up 0.20% year-on-year [1] - In Q1 2025, the company achieved a revenue of 745 million yuan, representing a year-on-year growth of 5.11%, with a net profit of 184 million yuan, up 6.22% year-on-year [1] Business Analysis - The planting business showed steady growth with a revenue of 530 million yuan in 2024, an increase of 10.60% year-on-year, accounting for 19.39% of total revenue, driven by demand release from price reductions post-collective procurement [2] - The orthodontics business saw a revenue decline of 5.05% to 474 million yuan, with invisible correction accounting for approximately 15% of this segment [2] - Pediatric business revenue was 501 million yuan, up 0.29% year-on-year, while repair business revenue reached 462 million yuan, increasing by 1.53% [2] - The company expanded its "Dandelion Plan" in the province, adding 3 new branches in 2024, bringing the total to 44, covering all 11 prefecture-level cities in Zhejiang [2] - Revenue from outside the province reached 277 million yuan, a year-on-year increase of 4.83%, with a gross margin improvement of 4.72 percentage points to 29.51% [2] Digitalization and Management - The company is advancing its digital transformation by leveraging its stake in Ren Technology to create an AI platform (MindHub), enhancing efficiency and service quality across clinical diagnosis, patient services, and operational management [3] - Continuous efforts in cost reduction and efficiency improvement are being made through refined operations, structural optimization, and digital empowerment [3] Profit Forecast and Valuation - Due to external consumption environment factors, the company has revised its profit forecast, expecting net profits attributable to shareholders of 537 million yuan, 574 million yuan, and 610 million yuan for 2025-2027, representing year-on-year growth of 7%, 7%, and 6% respectively [4] - The expected EPS for the same period is 1.20, 1.28, and 1.36 yuan, with corresponding PE ratios of 33, 31, and 29 times [4]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of 5% to 15% over the next 6 to 12 months [5][11]. Core Insights - In 2024, the company achieved a revenue of 2.874 billion RMB, a year-on-year increase of 0.96%, and a net profit attributable to shareholders of 501 million RMB, reflecting a growth of 0.20% [2]. - The company's planting business showed robust growth, with revenue reaching 530 million RMB, up 10.60% year-on-year, driven by increased demand following price reductions in dental implants [3]. - The company is advancing its digital transformation through AI technology, enhancing operational efficiency and service quality [4]. Summary by Sections Performance Review - In Q1 2025, the company reported a revenue of 745 million RMB, a year-on-year increase of 5.11%, and a net profit of 184 million RMB, up 6.22% [2]. Operational Analysis - The orthodontics segment saw a revenue decline of 5.05%, while pediatric and restoration services remained stable, indicating the essential nature of dental care [3]. - The company expanded its "Dandelion Plan" in the province, adding 3 new branches, bringing the total to 44, with 60% achieving breakeven [3]. Financial Forecast and Valuation - The profit forecast for 2025-2027 is adjusted to 537 million, 574 million, and 610 million RMB, respectively, with expected growth rates of 7%, 7%, and 6% [5]. - The estimated EPS for the same period is projected at 1.20, 1.28, and 1.36 RMB, with corresponding P/E ratios of 33, 31, and 29 times [5].

Company Overview - Tongce Medical announced a 2024 annual distribution plan, proposing a cash dividend of 4.5 yuan per 10 shares (including tax), with a total cash distribution amounting to 201 million yuan, representing 40.14% of the net profit [2] - The company reported a revenue of 2.874 billion yuan for the year, reflecting a year-on-year growth of 0.96%, and a net profit of 501 million yuan, which is a 0.20% increase compared to the previous year [2] Dividend History - This marks the fourth cumulative cash distribution since the company's listing, with the following historical distribution plans: - 2024: 10 shares distributed 4.5 yuan (total cash: 201 million yuan, dividend yield: 0.84%) - 2023: 10 shares distributed 4.3565 yuan (total cash: 139 million yuan, dividend yield: 0.39%) - 2017: 10 shares distributed 0.3 yuan (total cash: 10 million yuan, dividend yield: 0.11%) - 2016: 10 shares distributed 1.3 yuan (total cash: 42 million yuan, dividend yield: 0.40%) [2] Market Performance - The stock experienced a net outflow of 197,400 yuan from main funds today, with a total net outflow of 11.9 million yuan over the past five days [3] - The latest margin financing balance for the stock is 852 million yuan, with an increase of 15.57 million yuan over the past five days, representing a growth of 1.86% [4] Industry Context - In the pharmaceutical and biotechnology sector, 255 companies have announced their 2024 distribution plans, with WuXi AppTec leading with a cash distribution of 7.692 billion yuan, followed by Yunnan Baiyao and Aier Eye Hospital with distributions of 2.114 billion yuan and 1.488 billion yuan, respectively [4]

证券简称：通策医疗 证券代码：600763 编号：临 2025-003 通策医疗股份有限公司 第十届监事会第八次会议决议公告 本公司监事会及全体监事保证本公告内容不存在任何虚假记载、误导性陈述或者重大遗漏， 并对其内容的真实性、准确性和完整性承担个别及连带责任。 1 季度报告内容和格式符合中国证监会和证券交易所的各项规定，反映了公司 2025 年 第一季度的经营管理和财务状况等事项；没有发现参与季报编制和审议的人员有违反 保密规定的行为。 表决结果：3 票同意；0 票弃权；0 票反对。 三、审议通过《通策医疗股份有限公司 2024 年度监事会工作报告》； 通策医疗股份有限公司（以下简称"本公司"、"公司"）第十届监事会第八次会 议于 2025 年 4 月 25 日在公司会议室召开，监事会会议通知及相关文件以书面通知、 电话确认的方式通知全体监事。本次会议应出席监事 3 人，实际出席 3 人，会议由张 晓露先生主持，会议召集、召开程序符合《公司法》和《公司章程》的有关规定，合 法有效。 会议审议并通过以下议案： 一、审议通过《通策医疗股份有限公司 2024 年年度报告》和《通策医疗股份有 限公司 2024 年年 ...

证券简称：通策医疗 证券代码：600763 编号：临 2025-002 通策医疗股份有限公司 第十届董事会第九次会议决议公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者重大遗漏， 并对其内容的真实性、准确性和完整性承担个别及连带责任。 一、董事会会议召开情况 通策医疗股份有限公司（以下简称"公司"）第十届董事会第九次会议通知以电 子邮件、电话等方式发出，会议于 2025 年 4 月 25 日在浙江省杭州市西湖区灵溪北路 21 号合生国贸中心 5 号楼会议室以现场表决方式召开。 本次会议由公司董事长王毅女士主持。会议应出席董事 7 人，实际出席 7 人，公 司监事以及公司高管列席本次会议，会议的通知、召开符合《公司法》、《公司章程》 及有关法律法规规定，会议决议合法有效。 二、董事会会议审议情况 会议审议并通过以下议案： 1、审议通过《通策医疗股份有限公司 2024 年年度报告》和《通策医疗股份有限 公司 2024 年年度报告摘要》； 具体内容详见公司同日在上海证券交易所网站（www.sse.com.cn）披露的《通策 医疗股份有限公司 2024 年年度报告》和《通策医疗股份有限公司 ...