Aier Ophthalmology (300015.SZ) this week’s share price once again set a record high since the listing, has reached 36.83 yuan. In January, its stock price was 20 yuan.
Editor’s note: This article is from the WeChat public account “Financial Graffiti” (ID: caijingtuya), researcher: Aspirin.
Aer Eye Department (300015.SZ) last week’s share price once again set a record high since listing, has reached 36.83 yuan. In January, its stock price was 20 yuan.
Continuous expansion on the demand side of the industry
According to the 2018 Health Statistics Yearbook, the number of visits and hospitalizations in our eye hospitals has maintained a double-digit growth since 2011, and the sources of growth numbers are increasingly gathering with low-age people along with electronic products. The rise of residents’ eye habits is gradually changing. According to a study by the World Health Organization, there are 600 million myopia patients in China, and the rate of myopia among young people ranks first in the world. Walking on the street, six people will wear glasses in ten people. This ratio means that the demand for ophthalmic medical services has risen sharply.
Table 1 Source: 2018 Health Statistics Yearbook, financial doodles
Financial doodles measure the market space of the ophthalmic medical service market according to the main business classification:
Table 2 Source: National Bureau of Statistics , financial doodles
As can be seen from the data in the above figure, China’s ophthalmology market reached 100 billion in 2019, and we estimate that the market for eye care will continue to expand, so the industry will maintain a high rate of development.
The ophthalmic medical market is divided into two major markets: public eye care institutions and private eye care institutions.
Public medical institutions usually have advantages in medical resources, word of mouth, and social credibility. They have a higher status in China’s medical system, and have more market share in the ophthalmic medical service market, and with medical insurance.With the increase of the project, more patients are willing to go to the top three and dimethyl hospitals for treatment, which has the advantage of popularization.
However, in recent years, with the help of capital, private medical institutions have continued to develop. In terms of equipment configuration, doctor resource strength, etc., and with the improvement of service quality, the overall reputation of private medical institutions has gradually increased, and the market share has been continuously improved. According to third-party data, the private ophthalmology market has seen rapid growth in recent years. It is expected that the growth rate of the private ophthalmology market in 2019 will be nearly 15 pp higher than that of the public eye hospital market. However, even if the growth rate of private ophthalmology is sharp, the current eye industry hospitals still occupy an absolute advantage.
Table 3 Source: Freos Tesali, financial graffiti
Big Brother of Private Ophthalmology: Aier Ophthalmology
In the private eye field, I have to mention Aier Ophthalmology. As the largest ophthalmic medical institution in China, the company has long been spread all over the mainland. The signboard of Aier Ophthalmology has reached Hong Kong, Europe, and the United States, and has gradually formed a globalized layout. It is already a giant in the field of ophthalmology.
The model of Aier’s business is a traditional sales company called “Grade Chain”. This is a bit of a fast carpet-based market. By 2018, Aier Ophthalmology has More than 290 professional eye hospitals have been established in 30 provinces and cities in mainland China, covering 70% of the national medical insurance population, and the annual outpatient volume exceeds 6.5 million.
A lot of investors like to look at the company’s shareholding structure, and believe that a strong and secure company is a more secure investment. Mr. Chen Bang, the actual controller of Aier Ophthalmology, directly and indirectly holds approximately 48.35% of the shares of the listed company. Mr. Chen Bang, the chairman of the board, and Mr. Li Li, the general manager, held a total of 59.73% of the company’s shares, of which 39.11% of the listed company was held through Aier Medical Investment Group.
Table 4 Source: Sky Eyes, Financial Graffiti
After August 3, this year, Aier Ophthalmology announced the introduction of two world-class wars, namely, Gaochun Capital and Temasek.The speed of the company’s internationalization process began to increase. The listed company’s equity was relatively concentrated. The actual controller was the chairman of the company, participating in the company’s overall business scale and development, and was in line with the interests of the listed company. At the same time, most of the directors and senior management personnel were listed. The company’s shares have strong motivation. In general, Aer Eye’s share structure is concentrated and very strong.
After the 10-year process of Aier Ophthalmology, it can be found that the company has turned ten times in ten years.
As one of the first 28 listed companies on the GEM, the first two years of Aier Ophthalmology are not good. In 2012, the “Fengdaomen” incident directly affected the company’s performance, and Aier’s overall share price fell. This kind of shock has been maintained for a year. Until 2013, the company’s performance began to stabilize and rebound. With the gradual recovery of performance, the capital market gradually began to recognize the high growth attributes of the ophthalmology industry.
Table 5 Source: WIND, Finance Graffiti
From a valuation perspective, the average valuation of Aier Ophthalmology since the listing was about 70 times, and the current valuation is at a high level. From a historical perspective, Aier’s valuation is at a high level, which is mainly divided into these three stages: 1. The sub-new stocks are highly valued; 2. The market valuation in 2015 The bubble stage; 3, the first half of 2018, the overall recovery stage of the valuation of the pharmaceutical industry. Caijing Graffiti believes that the current high valuation is mainly due to the strong performance of the semi-annual report, and the impact of the introduction of Gaochun Capital and Temasek to consolidate investor confidence, and the valuation level will be at a high level by the end of the year.
The company released the 2019 semi-annual report to summarize the financial aspects of the company’s performance: the company’s 19H1 realized operating income of 4.749 billion yuan, an increase of 25.64%. The net profit attributable to the parent company was 695 million yuan, a year-on-year increase of 36.53%; the net profit attributable to deduction was 695 million yuan, a year-on-year increase of 31.93%. In the first half of 19 years, EPS was realized at 0.22 yuan. Among them, the second quarter achieved operating income of 2.504 billion yuan, an increase of 23.18%. The net profit attributable to the company was 397 million yuan, a year-on-year increase of 35.56%. The net non-attributable net profit was 423 million yuan, a year-on-year increase of 33.10%. In the second quarter, EPS was achieved at 0.13 yuan.
The company’s overall operating income and net profit maintained a steady growth in the first half of 2019, with an average outpatient income of 1501 yuan/person; the average operating price of the operation was 11,565 yuan/case, all of which achieved an upward rhythm.
Among them, within the company