New Journey(SZ:002219) Di Yi Cai Jing·2025-07-09 03:38Core Viewpoint - The recent investigation of Lin Yanglin, CEO of New Mile Health Technology Group, raises concerns about the company's future, particularly regarding its planned capital increase and the injection of quality hospital assets into the listed company, which investors see as crucial for significant market value enhancement [1][3][11]. Group 1: Company Leadership and Investigation - Lin Yanglin has been placed under investigation by the Taiyuan Municipal Xiaodian District Supervisory Committee, with the company stating that the matters involved are unrelated to it [1][4]. - The stock price of New Mile Health showed minor fluctuations following the news, with a drop of 3.65% on July 7 and a rebound of 2.39% on July 8 [1]. - Concerns have been raised about the absence of Lin Yanglin from key investor meetings, which is considered unusual for a company leader [1][3]. Group 2: Company Background and Strategy - Lin Yanglin has been with New Mile since 2016, serving as CEO for five years and chairman for four years, focusing on expanding the company's hospital acquisitions [2][8]. - The company has a significant presence in Shanxi, having acquired control of the Jinmei Group Medical Health Company, which includes the largest tertiary hospital in Jin City [6][7]. - New Mile Health has over 40 hospitals with a total of 30,000 beds, with plans to expand to 40,000-50,000 beds in the coming years, particularly in provincial capitals [9][12]. Group 3: Financial Performance - In 2024, New Mile reported revenues of 3.8 billion yuan, a decrease of 2.95% year-on-year, while net profit increased by 296.13% to 115 million yuan [11]. - The first quarter of 2025 showed a decline in both revenue and net profit, attributed to industry-wide impacts from medical insurance cost control and centralized procurement [11]. - The company has pursued external acquisitions to enhance its medical service segment, including the acquisition of 100% of Chongqing New Mile Medical and 60% of Dongying Elderly Hospital [11]. Group 4: Future Prospects and Ambitions - Lin Yanglin's vision for New Mile is to create a comprehensive health group integrating medical services, pharmaceuticals, and insurance, akin to a Chinese version of UnitedHealth or Kaiser Permanente [15][16]. - The company aims to leverage its hospital network to provide stable customer sources for insurance products, enhancing the synergy between healthcare and insurance [15]. - Despite the current challenges, the company remains focused on long-term strategic growth and cost control as key components of its operational strategy [10][14].