Investment Rating - The report maintains a "Buy" rating for Huaxia Eye Hospital (301267) [5] Core Views - The company is pursuing a dual strategy of "internal growth + external mergers" to drive sustainable development in the consumer ophthalmology sector [5] - The company has achieved steady growth, with a revenue of 2.139 billion yuan in the first half of 2025, representing a year-on-year increase of 4.3% [5] - The company aims to establish a world-renowned eye center and manage 200 eye hospitals and vision clinics across major regional markets [5] Financial Data and Profit Forecast - Total revenue forecast for 2025 is 4.407 billion yuan, with a year-on-year growth rate of 9.4% [4] - Net profit attributable to the parent company is projected to be 495 million yuan in 2025, with a year-on-year growth rate of 15.4% [4] - The company’s gross profit margin is expected to remain stable around 44.4% in 2025 [4] Business Performance - The company reported a revenue of 4.64 billion yuan in the first half of 2025, with a net profit of 1.33 billion yuan, reflecting a net profit margin of 28.65% [5] - The refractive surgery segment generated revenue of 789 million yuan in the first half of 2025, up 13.75% year-on-year, contributing 36.9% to total revenue [5] - The cataract project revenue decreased by 7.33% to 431 million yuan, primarily due to the impact of centralized procurement of artificial lenses [5]

Investment Rating - The investment rating for Huaxia Eye Hospital is maintained as "Buy" [1] Core Views - The company is focusing on a dual strategy of "internal growth + external mergers" to drive development, with a target of managing 200 eye hospitals and optical clinics nationwide and expanding into overseas markets [8] - The company reported a steady growth in revenue and net profit for the first half of 2025, with total revenue reaching 2.14 billion yuan, a year-on-year increase of 4.31%, and net profit of 282 million yuan, up 6.20% [8] - The company aims to enhance its performance through the development of consumer eye care projects alongside its strong capabilities in eye disease treatment [8] Financial Data and Profit Forecast - Total revenue projections for 2025 are estimated at 4.41 billion yuan, with a year-on-year growth rate of 9.4% [7] - The forecasted net profit for 2025 is 495 million yuan, reflecting a growth rate of 15.4% compared to the previous year [7] - The company’s gross margin is expected to remain stable, with a projected gross margin of 44.4% for 2025 [7]

Investment Rating - The report assigns a Neutral rating to Aier Eye Hospital with a 12-month target price of Rmb14, indicating a potential upside of 12.9% from the current price of Rmb12.4 [10][8]. Core Insights - Aier Eye Hospital is experiencing improvements in refractive surgery pricing due to new technologies, with a forecast of double-digit revenue growth for 2025 [2][7]. - The company anticipates a recovery in cataract surgery revenue growth to double digits in the second half of 2025, following price cuts of approximately 8-10% since the second half of 2024 [9][7]. - The overall ophthalmology market in China is expected to grow at a 12% CAGR from 2020 to 2030, driven by increased service upgrades and market penetration [7]. Summary by Sections Recent Trends - Growth in refractive surgeries slowed in April and May after a busy first quarter, but June showed improvement due to an increase in average selling prices (ASP) from new technologies [3]. - Cataract surgeries faced volume declines due to tightening reimbursement policies, while optometry performance remained moderate [3]. Refractive Surgery Pricing - New technologies such as SMILE 4.0 and SMILE pro have been launched, with SMILE 4.0 contributing 12% of refractive surgery revenue in Q1 2025 [3][6]. - The ASP for SMILE 4.0 is around Rmb18,800, with approximately 100 installations [3]. Cataract Surgery Outlook - The company expects cataract surgery revenue growth to recover to double digits in H2 2025, as the lower prices from H2 2024 are now reflected [9]. - Premium cataract surgeries accounted for 45%-50% of total cataract surgeries as of Q1 2025, with 15% of revenue coming from femtosecond laser-assisted surgeries [9]. Optometry Services - Recent pricing pressure on OK lenses was noted, particularly after public hospitals in Beijing reduced prices by 50% [9]. - The annualized cost for OK lenses is around Rmb10,000, while defocal lenses cost only Rmb2,000 to Rmb3,000 [9]. Overseas Expansion - Aier Eye Hospital is focusing on expanding its presence in South America [9].