Aier Ophthalmology, as one of the earliest companies listed on the Shenzhen Stock Exchange's Growth Enterprise Market, has hit an all-time high of 56.09 yuan since it was listed on October 30, 2009, and hit a record high of 56.09 yuan on September 3, 2020, with a total market value of 3.7 billion yuan rising all the way up to more than 220 billion yuan, and over 50 times its market value over the past 10 years, which has called for a lot of people to be stupefied and amazed. In fact, the opportunity to get on the bus has been available since the company's listing, but many people do not understand Aier Ophthalmology, always feel that the company's valuation is too expensive, there is a huge bubble.
In the end, the market is still our best teacher, only ta let us know "there was a bull stock in front of me, I did not cherish, and when I missed, I only regretted it, the most painful thing in the world is not more painful than this.
This article focuses on:
1, the ophthalmology market is a sunrise industry with high growth prospects
2, the three to be listed companies and the Aier ophthalmology of the 7 comparative analysis
3, who will be the next to be listed on the Internet.
Berry Research affirms that: the views in the article fine analysts based on public market information, views are only for the exchange of ideas, the full text of 7100 words, we will also be published in the near future, "looking for the devil in the details: in-depth excavation of the three ophthalmology subsidiaries of the performance of", welcome to follow up on the reading.
First, let's take a look at the overall ophthalmology healthcare services market size and eye hospital growth data.
In 2018, China's ophthalmology medical services market size is estimated to be about 87.12 billion yuan, with a high CAGR of over 20% from 2014 to 2018. Among them, the market size of private eye hospitals was estimated to be 34.16 billion yuan in 2018, with a CAGR of 21.3% respectively.
According to the National Health and Wellness Commission, there were 761 eye hospitals in China in 2018, of which 709 were private eye hospitals and 52 public eye hospitals.From 2014 to 2018, the private hospitals had a CAGR of nearly 20%, while the number of public hospitals declined, decreasing by nearly 2% over the same period.
It can be seen that the growth rate of the eye care industry is considerable, especially the potential of private eye hospitals.
Secondly, from the sub-specialty of eye healthcare services, the market size of cataract, refractive surgery and medical optometry is among the top three, with the combined size accounting for about 57.4% of the entire eye healthcare services market. We can start from these three major services to further explore their potential range.
1. Cataract Subspecialty Market
As China gradually enters an aging society, the number of cataract patients is increasing year by year. Although the number of cataract surgeries in China has been significantly improved, there is still a big gap compared with developed countries.In 2018, the number of cataract surgeries performed per million people in China (CSR) was 2,600, which is significantly lower than developed countries such as Europe, the United States, Japan, etc., and is even less than one-half of India's CSR, and there is still a gap between the CSR threshold established by the World Health Organization (WHO), which is essential for eliminating blindness caused by cataracts, and the CSR threshold of 3, 000, which is still a long way off. 000.
From the perspective of market size, China's cataract surgery market is estimated to be 17.59 billion yuan in 2018, with a CAGR of about 20% from 2014 to 2018, and the market development maintains a high growth rate.
2. Refractive error and medical optometry subspecialty market
Refractive error includes myopia, hyperopia and astigmatism. According to the National Health and Wellness Commission, in 2018, the total number of myopia patients in China reached approximately 480 million, with an overall myopia rate of nearly 33.7%, far exceeding the overall global myopia incidence rate of 12.5%. At present, the main treatment means for refractive errors are refractive surgery as well as optical vision correction. In terms of market size, China's refractive surgery market is estimated to be 13.91 billion yuan in 2018, with a CAGR of approximately 31.7% from 2014 to 2018, and the market continues to grow at a high rate.
In addition to opting for refractive surgery, patients with refractive errors also opt for optometric correction. The medical optometry market is growing rapidly as patients' demand for optometry quality continues to rise.The medical optometry market size in China was estimated at RMB 18.46 billion in 2018, growing at a CAGR of approximately 27.1% from 2014 to 2018.
3. Insufficient supply of ophthalmologist talent
In summary, China's ophthalmology market demand is strong, but the supply of the number of doctors to ensure the quality of medical services is still insufficient, and the future growth of the market scale is still full of imagination. At the same time, in this fast-growing track, competitive ophthalmology medical institutions will be expected to stand out, while constantly expanding the market
The industry is a sunrise industry is right, then the question is, who can ultimately run to win?
By analyzing and comparing the same industry, I hope to help you determine the fundamentals of the three to be listed companies, on the other hand, but also try to look into the three companies and the gap between Aier Ophthalmology, and try to find the next 10 years 50 times "Aier Ophthalmology".
In addition, the data related to Huaxia Ophthalmology, Prudential Ophthalmology, and Ho's Ophthalmology are as of December 31, 2019, unless otherwise noted. The data as of December 31, 2009 for Aier Ophthalmology (2009) and the data as of December 31, 2019 for Aier Ophthalmology (2019).
1, corporate mission: Huaxia Ophthalmology is most like Aier Ophthalmology
From the time of its establishment, the seat order of the eldest brother, the second brother, the third brother and the fourth brother to pull up the team and start to break into the ophthalmology jianghu is clear. Aier Ophthalmology is the earliest established a private hospital group. Huaxia ophthalmology is one of the earliest of the three to be listed companies. But the hero regardless of the source, can not rely on the old, whether the big brother has been able to maintain the status of the jianghu, but also to see whether the later is hard enough and lucky.
As the saying goes, the mission of a company is the soul of a company, which is the comprehensive embodiment of the company's culture, strategic pattern and service quality. In terms of corporate mission, the missions of Huaxia Ophthalmology and Aier Ophthalmology are particularly similar, and the most tangible and heartwarming, and I suspect that the founders of the two companies may have had similar experiences or strategic patterns. Priority Eye's corporate mission feels a bit false, He's Eye's corporate mission seems to be more in line with the local northeastern iron culture, the iron is easy to recognize. However, if Primary Eye Care and Ho's Eye Care are to expand more effectively in other cities across the country in the future, I'm afraid this mission needs to be further refined to gain more recognition.
2, business scale: Huaxia Ophthalmology leading
From the geographical distribution, the number of hospitals and the number of holding subsidiaries dimensions, there is no doubt that Huaxia Ophthalmology is the largest of the three inside the company, and even bigger than the 2009 Aier Ophthalmology scale.
Note: Aier Ophthalmology data as of June 30, 2009
Looking further at the geographical distribution of hospitals of each company, we can see that Huaxia Ophthalmology is based in Fujian, and the number of hospitals in Fujian is also the largest, while the coverage of other major provinces in China is also the largest among the three.
In terms of outpatient and surgical volume, Huaxia Ophthalmology exceeds Ho's Eye and Prudential Eye, and is higher than Aier Ophthalmology in 2009, but much lower than Aier Ophthalmology in 2019. In my opinion, after years of rapid development, Aier Ophthalmology has now basically consolidated its position as the leader of the national chain, so it is natural that the number of outpatient visits and surgeries is higher than the three, while Huaxia Ophthalmology has not performed well on its own turf that it has been cultivating for years and has a good market share.
3. Scientific research capability: Huaxia Ophthalmology has outstanding performance
Huaxia Ophthalmology applied for and carried out 7 national and 9 provincial scientific research projects during the reporting period of the prospectus; participated in and carried out 9 clinical trial projects, among which, the national multi-center project served as the chief PI of 1 project; published 139 scientific research papers in various journals, among which, 28 papers were SCI-recorded papers. The company has published 139 scientific papers in various journals, including 28 SCI papers. The company has established cooperative relationships with Xiamen University, Peking University and other institutions to carry out personnel training, academic **** construction, clinical research and other cooperation.
Priority Ophthalmology has established the Sichuan Research Institute, Lanzhou Research Institute, and Jinan Research Institute in cooperation with the health departments of several hospital chains.
As a national drug clinical trial organization, He's Ophthalmology has presided over or participated in the clinical trial research of many new ophthalmic drugs, equipment and consumables.
Aier Ophthalmology has published 303 papers in various journals***, including 71 papers in SCI/Medline, 138 papers in Chinese core journals/Chinese scientific and technological papers statistical source journals, and 94 papers in other categories. The company's vertical scientific research projects have been approved 95 projects, including 6 national projects, 36 provincial and ministerial projects, and 53 municipal projects; 4 horizontal scientific research projects have been approved. Since 2015 Aier Ophthalmology has set up seven major institutes, including Aier Eye Institute, Aier Optometry Institute, Corneal Disease Institute, Cataract Institute, Glaucoma Institute, Retina Institute and Refractive Institute, aiming to promote research and innovation in ophthalmology, visual science, and cutting-edge and clinically-applicable technologies in various subspecialties.
In terms of the proportion of R&D expenses to operating income, Huaxia Ophthalmology has the highest proportion among the three companies, but not as high as Aier Ophthalmology.
When compared horizontally, Huaxia Ophthalmology's research strength is the strongest among the three, but there is still a gap compared with the current Aier Ophthalmology.
4, the official word-of-mouth ranking: only Huaxia Ophthalmology was nominated
According to the authoritative "China's Hospital Ranking (2018)" compiled by the Fudan University, only Huaxia Ophthalmology Xiamen Ophthalmology Center under the nomination, and the list of the top ten are public eye hospitals, did not see the figure of other private hospitals. This shows that the Xiamen Eye Center under Huaxia Ophthalmology still has a high influence and good reputation in the ophthalmology industry, and the official endorsement of its strength has added points.
5, the performance of the subsidiaries and grassroots research
Specifically, Huaxia Ophthalmology in the number of cities covered by the three companies is the most, but most of the cities are not very good profitability, relying mainly on the Xiamen Eye Center, which is the most profitable to contribute to the net profit.
Primary Eye Care and Ho's Eye Care have the same number of cities covered, but Primary Eye Care has a higher percentage of profitable cities than Ho's Eye Care. At the same time, Primary Care and Ho's Eye also rely on their most important subsidiaries, Kunming Primary Care and Shenyang Ho's Eye Hospital, respectively, to drive the group's profitability.
In 2009, Aier Ophthalmology had a relatively smaller number of cities covered than all three companies, but a higher percentage of profitable cities than all three, and Aier Ophthalmology's reliance on the performance of a single subsidiary was weaker than that of the three companies.
6, the financial performance of the companies
First, I show you a panoramic picture, and then analyze the key financial indicators one by one.
Huaxia Ophthalmology is undoubtedly the big brother of the three, which has the highest operating income, net profit attributable to the parent company, total assets and the amount of equity attributable to the owner of the parent company, although there is still a large gap with the current scale of Aier Ophthalmology.
Further detailed look at operating income, Huaxia ophthalmology each outpatient average charge is the highest, even higher than the Aier ophthalmology.
From the classification of operating income, each company's cataract and refractive business is definitely the main source of revenue contribution, which also confirms our previous analysis of the industry mentioned that cataract and refractive business is the most important subspecialty market in the ophthalmology service market, and is also the most lucrative market segments.
In terms of gross profit margin, the cataract and refractive business of the three companies have relatively high gross profit margins, although the gross profit margins of Huaxia Ophthalmology's cataract and refractive business are not as high as those of Prudential Ophthalmology and Ho's Ophthalmology. The main reason for the lower gross profit margins of Huaxia Ophthalmology's cataract business and refractive surgery business was that some of the newly built and acquired hospitals during the year were located in economically underdeveloped regions with lower pricing standards. At the same time, the proportion of personalized medium- and high-end services has gradually increased, but the cost of surgical consumables and medicines used for the above services is also higher, resulting in an overall increase in the average price charged by the company below the average cost.
Why is the gross profit margin of Huaxia Ophthalmology the lowest among the three? In addition to the price factor, I guess it may be related to the company's depreciation of fixed assets and amortization of long-term amortized expenses. The greater a company's depreciation and amortization, the higher the amount allocated to the cost of doing business, and the lower the gross profit.
From the above table, it is easy to see that the proportion of fixed assets and long-term amortized expenses to total assets of Huaxia Ophthalmology is indeed the highest among the three, and even exceeds that of Aier Ophthalmology. The higher the fixed assets and long-term amortized expenses, the greater the corresponding depreciation and amortization, which may be one of the main reasons why Huaxia Ophthalmology has a lower gross profit margin than the other companies. I believe that, with reference to the operation of Aier Eye, Huaxia Ophthalmology will have more room for a series of operations after the listing of fixed assets and long-term amortized expenses to make the table processing, reduce depreciation and amortization in the table, so as to enhance the gross profit margin.
From the capital structure, the companies are not short of money, the net interest-bearing debt ratio is very low, and indirectly reflects the eye hospital's operating cash flow is abundant, do not need to rely on too much bank borrowing. In contrast, Aier Ophthalmology has gradually increased its financial leverage during the expansion process, so the net interest-bearing debt ratio is also higher than the three companies.
7, each company's fundraising projects
Let's take a look at the three companies' fundraising direction.
Huaxia Ophthalmology
Prudential Ophthalmology
He's Ophthalmology
The fund-raising and investment projects of the three companies are basically in the expansion of the new market and upgrading and renovation of the existing hospitals, in which Huaxia Ophthalmology intends to invest about 200 million yuan to upgrade the information management system, is the most invested in the three. In my opinion, if the efficiency of the upgraded information management system is improved, it will undoubtedly help the company's gross profit margin.
If there is a chance to go back to the time machine, let us find the investment opportunities of the year "Aier Eye", then I think, in this time, in the three ophthalmology hospitals to be listed, Huaxia Ophthalmology and the 2009 Aier Eye have the highest degree of similarity.
The scale of Huaxia Ophthalmology is the largest of the three companies in the city has been opened with good comprehensive competitive strength and market influence, performance growth is also considered good. If successfully listed, Huaxia Ophthalmology is expected to be able to use the power of capital to compete with Aier Ophthalmology in more cities across the country, grabbing more doctor resources and market share, and conservatively estimating that the net profit of five years and then doubled the dream is not impossible to realize.
Of course, we also need to see Huaxia Ophthalmology and the current Aier Ophthalmology there is not a small gap, such as most of the subsidiaries of the profitability is weak, the core business of the low gross margin, fixed assets accounted for more than high.
Analyst: Stephen Li