Summary of the Conference Call for Chaoyujian Eye Hospital Company Overview - Company: Chaoyujian Eye Hospital - Industry: Ophthalmology Key Points and Arguments Financial Performance - In 2024, the company's revenue increased by 2.6% year-on-year, while adjusted net profit decreased by 9.1% due to consumption downgrade and the ramp-up period of new hospitals [2][4] - The basic ophthalmology segment benefited from the acquisition of hospitals, leading to revenue growth, while the consumer ophthalmology segment faced pressure from price reductions in refractive surgeries, resulting in a gross margin decline of 6.5% [2][4] Surgical Trends - The volume of cataract surgeries increased significantly, with femtosecond laser cataract surgeries growing by 43%, which offset the impact of price declines due to centralized procurement [2][7] - High-end intraocular lens (IOL) usage increased, with high-end IOL revenue accounting for 60% in Q1 2025 [2] Market Dynamics - The full femtosecond laser technology is being promoted in multiple hospitals, but the price reduction of approximately 2,000 yuan has impacted revenue [2][6] - The company is actively responding to policy changes by enhancing hospital levels and expanding new business areas [2] Regional Performance - The impact of centralized procurement and Diagnosis-Related Group (DRG) policies varies by region, with Inner Mongolia managing to mitigate the effects through increased high-end IOL usage, while Hebei experienced slight losses due to the DIP policy [2][19][22] - Newly acquired hospitals contributed approximately 54 million yuan to overall revenue, but newly established hospitals are still in the ramp-up phase and have not yet turned profitable [12][13] Competitive Landscape - The ophthalmology merger and acquisition market is experiencing a downward shift in valuation, with slower IPO activity and reduced growth expectations affecting valuations [5][18] - The average price for full femtosecond laser procedures has decreased to a range of 16,800 to 19,800 yuan, with competitors having initiated price cuts earlier [11] Future Outlook - The company anticipates single-digit or double-digit revenue growth in 2025, but profit margins will need further evaluation based on Q2 and Q3 data [5][25] - The company aims to maintain a high dividend payout ratio of over 80% and will consider share buybacks based on market conditions [5][27] Consumer Behavior - The company is focusing on encouraging patients, particularly older demographics, to opt for high-end surgeries and IOLs through targeted marketing strategies [21][20] - The proportion of ICL (Implantable Contact Lens) remains low at approximately 7% of the overall refractive business [28] Challenges and Risks - The company faces challenges from consumption downgrade affecting gross margins, with expectations that the growth rate of refractive projects will be lower than in previous years [9][10] - The overall revenue structure in Q1 2025 remained flat, with basic ophthalmology showing positive growth while consumer ophthalmology faced pressure [10] Expansion Plans - The company plans cautious expansion, awaiting favorable conditions for potential acquisitions and new hospital openings [17] Additional Important Information - The company is actively working to mitigate the impact of DIP policies by increasing the proportion of self-paid services and promoting high-end products [20] - The performance of mature hospitals in Inner Mongolia showed a growth rate of 10% to 15%, while regions like Hebei and Zhejiang experienced declines [14]
朝聚眼科20250523