Core Viewpoint - The company emphasizes that chaotic price wars are detrimental to the sustainable development of the medical industry and will harm patient rights [1][2]. Group 1: Company Insights - Aier Eye Hospital has seen a steady recovery in the average price of refractive surgeries since last year, indicating a gradual industry clearing where demand is shifting towards reputable hospitals [1]. - The company plans to launch upgraded surgical techniques in 2024, including All-Laser LASIK and ICLV5 lenses, to meet diverse patient needs [1]. - Aier Eye Hospital's overseas business revenue is projected to account for approximately 12.5% in 2024, reflecting a 1% increase from the previous year, with plans for further expansion in Europe and Southeast Asia [3]. Group 2: Industry Trends - The aging population is driving demand for age-related eye disease treatments, particularly for presbyopia, which is currently under-recognized in China [2]. - The company anticipates significant growth potential in presbyopia treatment, similar to trends observed in developed countries [2]. - The company's profitability is expected to improve as patient volumes increase, benefiting from economies of scale and reduced sales expense ratios [3].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The Q1 performance of the company met expectations, and the ramp-up of new hospitals is expected to lead to improved performance [1] - The company experienced a decline in total revenue in 2024, but a recovery in profits is anticipated in 2025 as new hospitals begin to contribute positively [8] - The company has opened 8 new hospitals in 2024, which has put pressure on profits, but as these new facilities stabilize, overall performance is expected to improve [8] Financial Summary - Total revenue for 2023 was 2,718 million, with a projected decline to 2,678 million in 2024, followed by growth to 2,989 million in 2025 [1] - The net profit attributable to the parent company was 267.91 million in 2023, with a significant drop to -101.86 million in 2024, but a recovery to 104.09 million is expected in 2025 [1] - The latest diluted EPS is projected to be -0.68 in 2024, with a recovery to 0.70 in 2025 and further growth to 1.30 in 2026 [1] - The company’s P/E ratio is expected to be 61.64 in 2025 and decrease to 25.42 by 2027 [1] Operational Metrics - The company achieved an outpatient volume of over 1.53 million visits in 2024, a growth of 1.63%, and performed over 181,200 surgeries, an increase of 3.13% [8] - Revenue from refractive surgery was 1,227 million in 2024, down 5.31%, while comprehensive eye disease revenue grew by 12.81% to 470 million [8] - The gross profit margin for 2024 is projected to be 36.98%, down from previous years, with a net profit margin of -3.47% [8] Future Projections - The company’s net profit is projected to recover to 1.04 billion in 2025 and 1.95 billion in 2026, with an expected net profit of 2.52 billion by 2027 [8] - The company is expected to maintain a strong growth trajectory in the ophthalmology sector, driven by increasing consumer demand [8]

Core Insights - The company experienced a decline in revenue and profit in 2024, with operating income of 2.678 billion yuan (-1.46% year-on-year) and a net profit attributable to shareholders of -102 million yuan (-138.02%) [1] - In Q1 2025, the company showed signs of recovery with operating income of 742 million yuan (+9.82%) and a net profit attributable to shareholders of 27 million yuan (+61.18%) [1] Financial Performance - In 2024, the company reported a total outpatient volume of over 1.531 million visits (+1.63%) and over 181,200 surgeries (+3.13%) [1] - Revenue from refractive services in 2024 was 1.227 billion yuan (-5.31%) with a gross margin of 47.02% (-4.56 percentage points) [1] - The company’s overall sales gross margin and net margin for 2024 were 36.98% and -3.47%, respectively, reflecting a year-on-year decline of 7.02 and 13.70 percentage points [2] Business Segmentation - The company’s cataract revenue in 2024 was 576 million yuan (-3.04%) with a gross margin of 38.93% (-4.44 percentage points) [1] - Comprehensive eye disease revenue increased by 12.81% to 470 million yuan, although the gross margin decreased to 0.47% (-12.94 percentage points) [1] Strategic Developments - As of the end of 2024, the company operated 35 ophthalmology specialty hospitals and 4 outpatient departments, with 16 new medical institutions added from 2022 to 2024, accounting for over 40% of total facilities [2] - The company is in a market cultivation phase for its newly opened hospitals, which has led to increased fixed costs and pressure on profits [2] Profit Forecast - The company revised its net profit forecasts for 2025-2026 down to 104 million yuan and 195 million yuan, respectively, from previous estimates of 207 million yuan and 301 million yuan [3] - The projected net profit for 2027 is 252 million yuan, with corresponding price-to-earnings ratios of 62, 33, and 25 times for the respective years [3]