IMIC(SZ:000516) Donghai Securities·2024-09-25 13:00Investment Rating - The report maintains a "Buy" rating for the company [5]. Core Views - The company is a leading general medical service provider in Northwest China, with a strong focus on expanding its medical business and achieving profitability [6][17]. - The company has shown significant revenue growth, with a compound annual growth rate (CAGR) of 46.93% from 2019 to 2023, and is expected to continue this trend [6][21]. - The company is transitioning towards profitability, with a notable reduction in losses and an increase in revenue from its high-end hospital and center hospital operations [6][24]. Summary by Sections Company Overview - The company has been deeply involved in the medical industry for over 20 years, operating two major hospitals: the High-tech Hospital and the International Medical Center Hospital, which serve as a comprehensive medical service platform in Northwest China [6][17]. High-tech Hospital - The High-tech Hospital is recognized as the first social-run tertiary hospital in China, with a strong reputation in Northwest China and a patient inflow from outside the region [6][30]. - The hospital has maintained a steady growth rate of over 10% in revenue, with a historical average net profit margin of around 14% [6][30]. - In 2023, the hospital's revenue reached 1.485 billion yuan, with a year-on-year growth of 50.5% [6][33]. Center Hospital - The Center Hospital, built to tertiary standards, has a total of 8,637 beds and is positioned to significantly increase patient volume and revenue [6][38]. - The hospital offers a wide range of services, including serious medical care and consumer-oriented medical services, enhancing patient retention [6][38]. - The Center Hospital is expected to achieve a revenue scale of 10 billion yuan in the medium to long term, driven by increasing patient volumes and operational efficiency [6][38]. Financial Projections - The company forecasts revenues of 5.141 billion yuan, 6.152 billion yuan, and 7.524 billion yuan for 2024, 2025, and 2026, respectively, with a gradual improvement in net profit [6][9]. - The company aims to narrow its losses significantly, with projected net profits of -230 million yuan in 2024, -39 million yuan in 2025, and a positive 97 million yuan in 2026 [6][9].