Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company's overall performance in H1 2024 met expectations, with improved profitability [1] - Despite a slight decline in revenue, the company's profit optimization is promising [1] - The company is expected to see continuous growth in business scale and profitability due to asset integration and refined management [3] Financial Performance - H1 2024 revenue was RMB 49.76 billion, a decrease of 2.7% YoY, while net profit increased by 9.0% to RMB 4.34 billion [4] - Hospital business revenue in H1 2024 was RMB 46.00 billion, a slight decrease of 3.0% YoY, with outpatient revenue increasing by 1.7% and inpatient revenue decreasing by 6.1% [4] - Other business revenue increased by 1.8% to RMB 3.76 billion [4] Operational Highlights - The company managed 127 medical institutions across 10 provinces in China, including 13 tertiary hospitals and 23 secondary hospitals [4] - In H1 2024, outpatient visits and inpatient admissions at self-owned hospitals increased by 3.5% and 3.0% YoY, reaching 5.05 million and 280,000 respectively [1] - Average revenue per outpatient visit and inpatient admission decreased by 2.0% and 8.8% respectively, influenced by a two-year gap in medical insurance settlements [1] Profitability and Cost Efficiency - The gross profit margin for the hospital business in H1 2024 was 20.1%, with a gross profit of RMB 9.23 billion [2] - Financial expenses decreased by 34.8% to RMB 39.84 million due to the replacement of foreign loans with RMB loans, resulting in lower interest rates [2] - Income tax decreased by 16.3% to RMB 116 million, primarily due to a reduction in taxable income within China [2] Future Projections - The company's revenue for 2024-2026 is projected to be RMB 105.20 billion, RMB 110.84 billion, and RMB 117.46 billion, with YoY growth rates of 4.08%, 5.37%, and 5.97% respectively [3] - Net profit attributable to shareholders is expected to be RMB 7.44 billion, RMB 7.82 billion, and RMB 8.17 billion for 2024-2026, with YoY growth rates of 188.90%, 5.02%, and 4.50% respectively [3] Market Position - The company is a leading comprehensive medical group under the central state-owned enterprise, with significant growth potential in the healthcare sector [3]
华润医疗：收入短期略有波动，利润优化值得期待