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]

Core Viewpoint - Recent research conducted by renowned private equity firm Ruiyang Investment on Huaxia Eye Hospital indicates a stable revenue outlook for 2024, with a slight decline in net profit, influenced by healthcare policies and market dynamics [1] Financial Performance - For the year 2024, Huaxia Eye Hospital is projected to achieve revenue of 4.027 billion yuan, representing a year-on-year growth of 0.35%, while net profit is expected to be 429 million yuan, reflecting a year-on-year decline of 35.63% [1] - In the first quarter of 2025, the company reported revenue of 1.093 billion yuan, an increase of 11.74% year-on-year, with net profit at 150 million yuan, down 4.00% year-on-year [1] Business Segments - The company's ophthalmology and cataract services are expected to stabilize due to the impact of medical insurance DRG/DIP policies, while refractive and optometry services are showing good growth [1] - The cataract business has experienced a slight decline due to centralized procurement policies [1] Strategic Initiatives - Huaxia Eye Hospital has launched the "365 Myopia Prevention Model" to enhance optometry center construction and increase outpatient volume, focusing on adult eyewear solutions [1] - The implementation of the "Ophthalmology Medical Service Pricing Project Establishment Guidelines" is expected to standardize pricing and promote technological innovation in myopia prevention [1] Market Trends - The aging population is driving demand for the diagnosis and treatment of age-related eye diseases, while the need for myopia prevention and treatment for dry eye and diabetic patients continues to grow [1] Expansion Plans - The company has outlined a plan to manage 200 hospitals through self-built or acquisition methods, with a focus on expanding in Europe and Asia [1] - Huaxia Eye Hospital is actively recruiting an overseas investment and acquisition director to identify potential acquisition targets and talent [1]

Group 1 - The company reported a revenue of 2.678 billion yuan in 2024, a year-on-year decrease of 1.46%, and a net profit attributable to shareholders of -102 million yuan, a decline of 138.02% [1] - In Q1 2025, the company achieved a revenue of 742 million yuan, a year-on-year increase of 9.82%, and a net profit attributable to shareholders of 27 million yuan, a growth of 61.18% [1] - The company expects a recovery in 2025, driven by improved consumer environment and policy support [2] Group 2 - In 2024, the company's revenue from refractive projects was 1.227 billion yuan, down 5.31% year-on-year, while cataract project revenue was 576 million yuan, down 3.04% [2] - The gross margin for refractive projects in 2024 was 47.02%, a decrease of 4.56 percentage points compared to the same period in 2023 [2] - The overall gross margin in 2024 was 36.98%, down 7.02 percentage points year-on-year, with a net margin of -3.47%, a decline of 13.7 percentage points [3] Group 3 - The company anticipates net profits of 118 million yuan, 197 million yuan, and 255 million yuan for the years 2025, 2026, and 2027 respectively, reflecting adjustments due to factors like artificial crystal procurement and DRG policy [4] - The company is positioned as a leading private ophthalmology medical enterprise in China, with clear expansion plans in provincial capitals [4] - The aging population is expected to drive demand for medical services, supporting the company's growth trajectory [4]

Group 1: Mergers and Acquisitions Strategy - The company adheres to a cautious and prudent investment principle when selecting merger targets, focusing on strategic alignment, compliance, value assessment, and acquisition methods [2][3][7] - The company aims to acquire medical targets in the ophthalmology consumer healthcare sector and upstream/downstream industry chain extensions [7][8] Group 2: Research and Development Investments - In 2024, the company increased R&D investments significantly, focusing on AI-assisted diagnosis and new intelligent devices, which are expected to enhance diagnostic efficiency and service capabilities [4][8][17] - The company achieved a post-operative satisfaction rate of over 98% through advanced equipment and innovative surgical techniques [3][4] Group 3: Financial Performance - The company reported a net profit of -27.4 million yuan in 2024, with a net profit margin of -3.22%, attributed to intensified industry competition and changes in medical insurance payment methods [8][9] - In Q1 2025, the company achieved a net profit of 32.5 million yuan, with a net profit margin of 11.16%, indicating a recovery compared to the previous year [8] Group 4: Internet Healthcare Development - The company's online healthcare platform has over 900,000 users and 120 online doctors, providing a range of services including consultations and health management [6][8] Group 5: Market Competition and Product Development - The company focuses on differentiated technology and customized products, such as the "Zhaoxing lens" and the "365 Myopia Prevention System," to strengthen its market position in vision care [9][10] - The company is actively monitoring advancements in gene therapy and AI-assisted surgical planning to maintain its competitive edge [8][9] Group 6: Social Responsibility and ESG Initiatives - The company has trained over 50,000 grassroots doctors and healthcare managers, contributing to public health and eye care accessibility [23][24] - The company integrates ESG principles into its operations, focusing on sustainable development and community health initiatives [25][26]

公司24 年收入/归母净利40.27/4.29 亿元（yoy+0.4%/-35.6%），利润端低于Wind 一致预期（预期5.63 亿 元），我们推测主因行业需求阶段性放缓及竞争加剧等短期扰动，叠加公司短期强化人员及设备投入。 公司1Q25 收入/归母净利10.93/1.50 亿元（yoy+11.7%/-4.0%，qoq+29.3%/+1824.0%），公司业绩已呈边 际提速态势。公司同日发布2025 年员工持股计划（草案），其公司层面的业绩考核指标（解锁比例 100%）为25/26/27 年公司收入或净利润较24 年业绩基数增长率不低于10%/20%/30%，对应25/26/27 年 公司收入或净利润同比增速不低于10.0%/9.1%/8.3%，彰显长期发展信心。 盈利预测与估值 考虑屈光新术式推广及人员设备投入强化对于销售费用率和管理费用率的影响，我们预计25-27 年EPS 为0.57/0.66/0.76 元（相比25/26 年前值下调22%/22%）。公司诊疗实力过硬且服务网络积极扩张，给予 公司25 年40xPE（可比公司Wind 一致预期均值34x），对应目标价22.87 元（前值27.03元，对 ...

Core Viewpoint - The company reported a revenue of 20.98 billion yuan for 2024, with a year-on-year growth of 3.0%, and net profits meeting market expectations. The first quarter of 2025 showed a revenue of 6.03 billion yuan, a year-on-year increase of 16.0%, exceeding market expectations, primarily due to the recovery in consumer business [1]. Group 1: Business Performance - In 2024, the consumer business faced pressure, with refractive and optical revenues growing by 2.3% and 6.4% year-on-year, respectively. However, in Q1 2025, both segments are expected to outperform the overall company revenue growth due to the elimination of price base pressure and the application of new technologies [2]. - The serious medical segment maintained stable growth in 2024, with cataract, anterior segment, and posterior segment revenues increasing by 4.9%, 5.9%, and 8.2% year-on-year, respectively. The company anticipates continued stable performance in Q1 2025 [2]. Group 2: Expansion and Service Improvement - By the end of 2024, the company operated 581 domestic medical institutions and 163 overseas institutions, having acquired nearly 90 domestic medical institutions and the Optimax Group to enter the UK ophthalmology market. This expansion is expected to enhance market positioning and achieve economies of scale [3]. - The company is optimizing service models by extending outpatient hours and building smart hospital platforms to meet diverse patient needs, achieving a patient satisfaction rate close to 99.0% in 2024 [3]. Group 3: Financial Metrics - In 2024, the company reported a gross margin of 48.1%, a sales expense ratio of 10.3%, and a management expense ratio of 14.2%. The net profit margin for the parent company was 16.9% [4]. - In Q1 2025, the company achieved a gross margin of 48.0%, with a reduction in sales and management expense ratios to 9.0% and 12.6%, respectively. The net profit margin for the parent company increased to 17.6% year-on-year [4]. Group 4: Profit Forecast and Valuation - The company adjusted its net profit forecast for 2025-2026 down by 7.73% and 7.94% to 4.09 billion yuan and 4.699 billion yuan, respectively. The current stock price corresponds to a P/E ratio of 29.9x for 2025 and 26.0x for 2026 [5]. - The target price is maintained at 16.0 yuan, corresponding to a P/E ratio of 36.5x for 2025 and 31.8x for 2026, indicating a potential upside of 22.0% from the current stock price [5].

Core Insights - The company reported a revenue of 20.983 billion yuan in 2024, a year-on-year increase of 3%, and a net profit attributable to shareholders of 3.556 billion yuan, up 6% [1] - In Q1 2025, the company achieved a revenue of 6.026 billion yuan, representing a 16% increase, and a net profit attributable to shareholders of 1.050 billion yuan, up 17% [1] Operational Analysis - The outpatient and surgical volumes showed steady growth, with outpatient visits reaching 16.94 million (up 12%) and surgical procedures totaling 1.29 million (up 9%) in 2024 [2] - Revenue from refractive projects was 7.603 billion yuan (up 36%), cataract projects generated 3.489 billion yuan (up 17%), and vision service projects brought in 5.279 billion yuan (up 25%) [2] - Domestic revenue was 18.070 billion yuan (up 2.94%) with a gross margin of 48.03%, while overseas revenue reached 2.625 billion yuan (up 15.1%), with European revenue at 2.031 billion yuan (up 18.05%) [2] Business Expansion and AI Integration - The company expanded its network by acquiring 87 medical institutions, enhancing its presence in domestic markets, particularly at the county level [3] - By the end of 2024, the company operated 352 hospitals and 229 outpatient departments, benefiting from a tiered chain model for resource sharing [3] - The company launched the AierGPT model and digital assistant "AiKe," serving 2.01 million users, and collaborated with institutions like the Chinese Academy of Sciences to accelerate AI technology in ophthalmology [3] Profit Forecast and Valuation - The profit forecast for 2025-2027 has been adjusted, with expected net profits of 4.137 billion, 4.806 billion, and 5.561 billion yuan, each reflecting a 16% year-on-year growth [4] - The earnings per share (EPS) are projected to be 0.44, 0.52, and 0.60 yuan for the respective years, with corresponding price-to-earnings (PE) ratios of 29, 25, and 21 [4]

Financial Performance - In 2024, the company achieved operating revenue of CNY 4.027 billion, a year-on-year increase of 0.35% [2] - The net profit attributable to shareholders was CNY 429 million, a decrease of 35.63% [2] - As of the end of the reporting period, total assets amounted to CNY 7.924 billion, with net assets of CNY 5.794 billion [3] - In Q1 2025, operating revenue reached CNY 1.093 billion, a year-on-year growth of 11.74%, while net profit was CNY 150 million, down 4.00% [3] Business Segment Performance - In 2024, the cataract business generated revenue of CNY 873 million, a decline of 11.56% due to the implementation of centralized procurement policies [3] - The refractive business achieved revenue of CNY 1.296 billion, growing by 7.44% [3] - The comprehensive optometry business reported revenue of CNY 1.069 billion, an increase of 5.15% [3] - The eye posterior segment business saw revenue of CNY 536 million, a slight increase of 0.19% [3] Market Outlook - The aging population is expected to drive demand for various age-related eye diseases, including cataracts, with an estimated 80% incidence rate among individuals over 60 [8] - By 2050, the number of cataract patients in China is projected to reach 241 million [8] - The prevalence of myopia among children and adolescents is a significant public health issue, with a reported rate of 51.9% in 2022 [9] - The market for eye care services in China is anticipated to grow, driven by increasing demand in various segments [9] Strategic Initiatives - The company plans to expand its operations through mergers and acquisitions or self-built facilities in 24 key investment provinces [10] - There is a focus on enhancing the eye care service network and improving operational efficiency through technology and management systems [7] - The company is actively seeking overseas expansion opportunities, particularly in Europe and Asia, to enhance its global footprint [11]

Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [5][12]. Core Insights - The company reported a revenue of 2.678 billion RMB in 2024, a decrease of 1.46% year-on-year, and a net profit attributable to shareholders of -102 million RMB [2]. - In Q1 2025, the company achieved a revenue of 742 million RMB, reflecting a year-on-year increase of 9.82%, with a net profit of 27 million RMB, up 61.18% year-on-year [2]. - The company is focusing on the iterative development of refractive surgery techniques and has seen stable growth in essential projects [3]. Summary by Sections Performance Review - In 2024, the company generated revenue of 2.678 billion RMB, down 1.46% year-on-year, and reported a net loss of 102 million RMB [2]. - For Q1 2025, the company recorded revenue of 742 million RMB, a 9.82% increase year-on-year, with a net profit of 27 million RMB, marking a 61.18% increase year-on-year [2]. Operational Analysis - The refractive surgery segment generated 1.227 billion RMB in revenue in 2024, down 5.31% year-on-year, with a gross margin of 47.02% [3]. - The cataract project revenue was 576 million RMB, down 3.04% year-on-year, influenced by national procurement policies [3]. - The company is introducing new technologies to enhance its competitive edge and is focusing on high-end products to mitigate the impact of price reductions [3]. Expansion Strategy - The company is implementing a "national chain + local integration" strategy, focusing on urban centers and gradually maturing new hospitals to drive future growth [4]. Profitability Forecast - The company is expected to achieve net profits of 130 million RMB, 161 million RMB, and 202 million RMB for 2025, 2026, and 2027, respectively, with corresponding EPS of 0.87, 1.07, and 1.35 RMB [5].