2024-07-18 06:01Investment Rating - The report maintains a "Buy" rating for the company [3][4]. Core Views - The company plans to issue USD 3.5 billion convertible bonds at an interest rate of 0.875%, which is expected to enhance its capital adequacy [3]. - The initial conversion price for the bonds is set at HKD 43.71 per share, representing a 27.4% upside from the closing price on July 17 [3]. - The issuance of convertible bonds will support business development, capital replenishment, and the company's healthcare and elderly care strategic layout [3]. - The company intends to cancel 103 million A-shares repurchased for employee stock ownership plans, which will reduce the total share capital and mitigate concerns regarding the dilution effect of the convertible bonds [4]. Summary by Sections Market Data - Closing price: CNY 42.29, with a 1-year high/low of CNY 53.85/CNY 37.62 [2]. - Market capitalization: CNY 455,153 million [2]. Financial Projections - Expected revenue growth rates: 8.6% in 2024, 8.9% in 2025, and 7.7% in 2026 [5]. - Projected net profit for 2024 is CNY 130,345 million, with a year-on-year growth of 52.2% [5]. - Earnings per share (EPS) for 2024 is estimated at CNY 6.07 [5]. Capital Adequacy - As of Q1 2024, the solvency ratios for the group and its main subsidiaries are significantly above regulatory requirements, with the comprehensive solvency ratio at 208.03% [3]. Shareholder Returns - The cancellation of repurchased shares is expected to enhance earnings per share (EPS) and enterprise value per share (EVPS) for 2024 [4].