Core Viewpoint - Wuhan Dazhong Dental Medical Co., Ltd. has re-submitted its IPO application to the Hong Kong Stock Exchange, with Haitong International as the sole sponsor, marking its second attempt after a previous failed submission [1] Company Overview - As of the last feasible date, Dazhong Dental operates 92 dental medical institutions, including 4 profit-making hospitals, 80 profit-making clinics, and 8 profit-making dental offices across eight cities in Hubei and Hunan provinces [1] - According to Frost & Sullivan, Dazhong Dental ranks first among all private dental service providers in Central China based on revenue in 2023 [1] Financial Performance - From 2021 to 2024, Dazhong Dental's revenue figures were 381 million, 409 million, 442 million, and 407 million yuan, respectively, while net profits were 14.738 million, 56.45 million, 67.038 million, and 62.5 million yuan [2] - In 2024, both revenue and net profit showed a year-on-year decline of 7.87% and 6.77%, respectively [2] Market Competition - The number of dental medical institutions in China increased from 64,100 in 2015 to 102,400 in 2023, with a compound annual growth rate of approximately 6.03% [3] - In Central China, where Dazhong Dental is based, there are approximately 15,900 private dental service providers as of the end of 2023 [3] - Dazhong Dental holds a market share of only 2.6% despite being the largest private dental service provider in its region [3] Impact of Procurement Policies - The introduction of centralized procurement policies for dental implants and orthodontic brackets has significantly reduced the profitability of Dazhong Dental's core business [4] - The average price of dental implants dropped by over 30% during the reporting period, with prices recorded at 8,460 yuan, 6,004 yuan, and 5,767 yuan [4] - The average expenditure on orthodontic projects also declined, with figures of 627 yuan, 583 yuan, and 510 yuan during the same period [4] Industry Trends - The centralized procurement has compressed profit margins for manufacturers and healthcare providers, leading to varying degrees of performance pressure across the industry [5] - In 2023, Dazhong Dental's patient visits for dental implant services reached 78,800, a year-on-year increase of 31.79%, while orthodontic service visits totaled 140,000, up 9.55% [5] - However, growth rates for these services are expected to slow in 2024, with projected increases of only 10.22% for dental implants and 3.6% for orthodontics [5] Future Outlook - The growth of the private dental service market in China is anticipated to further slow in 2024, with market expansion becoming stagnant [6] - Dazhong Dental plans to open 80 to 100 new dental institutions in Central China over the next five years and aims to acquire 40 to 65 dental institutions [6] - The company's goodwill is approximately 63.09 million yuan, accounting for 16.7% of total assets as of 2024 [6] Historical Financing - Dazhong Dental has undergone two rounds of financing, with significant investments from various parties, including a total of 85.49 million yuan from multiple investors in 2021 [7] - Prior to the IPO submission, several investors chose to exit, leading to a buyback agreement for 8.3793 million shares at a total price of 121 million yuan [7]
大众口腔二战港交所：市场竞争加剧业绩承压 资产经营效率欠佳仍募资扩张
Xin Lang Zheng Quan·2025-06-18 01:55