Investment Rating - The report maintains a "Buy" rating for the company with a market price of 2.43 HKD [1]. Core Insights - The company achieved a revenue of 2.79 billion HKD in 2023, representing an 18.0% year-over-year growth, and an adjusted net profit of 470 million HKD, which is a 72.0% increase year-over-year [4]. - The core business of Assisted Reproductive Services (ARS) showed a strong recovery, with revenue reaching 1.34 billion HKD, up 26.74% year-over-year [4]. - The company is expected to maintain robust growth, with projected revenues of 3.16 billion HKD, 3.61 billion HKD, and 4.15 billion HKD for 2024, 2025, and 2026, respectively, reflecting growth rates of 13.4%, 14.2%, and 14.8% [5]. Financial Performance Summary - Revenue and Profitability: - 2022A: Revenue of 2.36 billion HKD, Net Profit of 121.1 million HKD - 2023A: Revenue of 2.79 billion HKD, Net Profit of 344.7 million HKD - 2024E: Revenue of 3.16 billion HKD, Net Profit of 476.8 million HKD - 2025E: Revenue of 3.61 billion HKD, Net Profit of 557.5 million HKD - 2026E: Revenue of 4.15 billion HKD, Net Profit of 659.1 million HKD [1][4][5]. - Profitability Ratios: - Gross Margin: 42.15% in 2023, up 5.2 percentage points year-over-year - Net Margin: 12.44% in 2023, up 7.5 percentage points year-over-year [4]. - Earnings Per Share (EPS): - 2022A: 0.05 HKD - 2023A: 0.12 HKD - 2024E: 0.17 HKD - 2025E: 0.20 HKD - 2026E: 0.24 HKD [1][5]. - Valuation Metrics: - P/E Ratio: Expected to decrease from 44.3 in 2022A to 8.9 in 2026E - P/B Ratio: Expected to remain stable around 0.6 to 0.5 from 2023A to 2026E [1][5]. Business Segment Performance - The company’s core ARS business is recovering well, with a significant increase in the number of egg retrieval cycles, totaling 30,368 in 2023, a 16.2% increase year-over-year [4][5]. - The company’s various hospital locations, particularly in Chengdu and the Greater Bay Area, are expected to continue driving revenue growth, with the Chengdu location achieving 2.17 billion HKD in revenue in 2023 [5]. Future Outlook - The company is positioned to become a leading brand in the private assisted reproduction sector, with strong internal growth and expansion potential [5].
ARS业务稳步复苏，培育期医院扭亏在即