HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Over 15 years' experience in both finance and healthcare, covering clinic operations, investment and equity research in both China and overseas.

Pre-IPO Xiamen Yan Palace Bioengineering (PHIP Updates) - Some Points Worth the Attention

Hygeia Healthcare Group (6078.HK) - High Growth in 2024 Is Not Guaranteed

Pre-IPO Midea Group H Share - Even in the Face of Challenges, There Is Still Investment Value

Aier Eye Hospital (300015.CH) 23Q3 - While Enjoy the Rebound, Recognize the Endgame Behind the Story

Hygeia Healthcare Group (6078.HK) - The Crack in the Egg

Remegen (9995.HK/688331.CH) - The Survival Problem Is Becoming Imminent

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Equity Bottom-Up

Hygeia Healthcare Group / Equity Bottom-Up

<ul>
<li>Hygeia’s asset-heavy model leads to a situation of expense “front-loading” and profit “back-loading”.Management's attitude towards profit is “thought-provoking”.It’s best for investors not to have high hope for Hygeia's profit margin.</li>
<li>Hygeia can maintain 30%+ growth in short term, but revenue growth could fall to 15-20% in the future due to lack of high-quality M&amp;A targets and uncertainties brought by anti-corruption.</li>
<li>Revenue forecast is about RMB4 billion in 2023 and RMB5-5.5 billion in 2024. P/E of 30-40 is reasonable range at this stage, which would drop afterwards. Current valuation is expensive. </li>
</ul>


Hygeia’s asset-heavy model leads to a situation of expense “front-loading” and profit “back-loading”.Management's attitude towards profit is “thought-provoking”.It’s best for investors not to have high hope for Hygeia's profit margin.
Hygeia can maintain 30%+ growth in short term, but revenue growth could fall to 15-20% in the future due to lack of high-quality M&amp;A targets and uncertainties brought by anti-corruption.
Revenue forecast is about RMB4 billion in 2023 and RMB5-5.5 billion in 2024. P/E of 30-40 is reasonable range at this stage, which would drop afterwards. Current valuation is expensive. 


Hygeia Healthcare Group (6078.HK) - A Decline in Growth Is Inevitable