Investment Rating - The report maintains a "Strong Buy" rating for the non-bank financial sector, specifically focusing on the elderly care industry [1]. Core Insights - The elderly care industry is characterized by a diverse range of participants, including government entities, real estate companies, insurance firms, and specialized elderly service operators. Insurance companies are identified as the main investors in elderly communities due to their financial, customer, and resource advantages [3][4]. - The operational models in the elderly care sector primarily consist of heavy asset and light asset approaches, with heavy asset models being suitable for financially robust participants like insurance and real estate companies [3][4]. - The profitability of elderly care institutions revolves around rental and sales strategies, with a predominant focus on external leasing for stable income generation [4]. Summary by Sections 1. Current Status of Institutional Elderly Care Services - The development of institutional elderly care services is steadily progressing, supported by policies that encourage a multi-faceted approach to elderly care [15][32]. - The number of registered elderly care institutions and their bed capacity has been increasing, although the overall bed utilization rate has declined, indicating a faster growth in community care services [33]. 2. Diversity of Participants in Elderly Real Estate - The elderly real estate sector features four main types of social capital participants, each with unique strengths, with insurance companies holding a comprehensive advantage [3]. - The operational models are categorized into heavy asset, light asset, and a combination of both, allowing for flexibility in service coverage [3][4]. 3. Profitability Models - Elderly care institutions primarily generate revenue through direct sales, external leasing, or a combination of both, with external leasing being the most common approach for stable income [4].

Investment Rating - The report maintains an "Outperform" rating for the non-bank financial sector, specifically focusing on the elderly care industry [1]. Core Insights - The elderly care industry is characterized by a diverse range of participants, including government entities, real estate companies, insurance firms, and specialized elderly service operators, with insurance companies holding a comprehensive advantage in investment [3][4]. - The operational models in elderly care primarily consist of heavy asset and light asset approaches, with the heavy asset model being suitable for financially robust participants like insurance and real estate companies [3][4]. - Profitability in elderly care institutions is mainly derived from rental and sales activities, with a focus on long-term rental agreements providing stable income streams [4]. Summary by Sections 1. Current Status of Institutional Elderly Care Services - The evolution of institutional elderly care policies has shifted from public welfare institutions to a multi-faceted approach supported by various social forces, emphasizing the coordination of home, community, and institutional care [7][14]. - The number of registered elderly care institutions and beds has been steadily increasing, although the overall bed utilization rate has declined, indicating a faster growth in community care services compared to institutional care [31]. 2. Diverse Participants in Elderly Real Estate - The elderly real estate sector features four main types of social capital participants, each with unique strengths, where insurance companies leverage their financial resources and customer base to dominate the investment landscape [3][4]. - The operational models are categorized into heavy asset, light asset, and a combination of both, allowing for flexibility in service coverage and financial management [3][4]. 3. Profitability Models - Elderly care institutions primarily generate revenue through direct sales, external rentals, or a combination of both, with external rentals being the preferred method for stable income [4].