Hygeia Medical released the 2023 annual results announcement, with the group's total operating income of 4.077 billion yuan and net profit of 683 million yuan, an increase of 27.6% and 42.1% respectively over the same period last year, continuing to maintain a high growth rate.
Author: Zhao Xiaohua
来源|看医界(ID:vistamed)
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On March 26, Hygeia Medical released the 2023 annual results announcement, with a total operating income of 4.077 billion yuan and a net profit of 683 million yuan, an increase of 27.6% and 42.1% respectively over the same period last year, continuing to maintain a high growth rate. Basic earnings per share was 1.08 yuan, an increase of 40.3% over the same period last year.
From the perspective of 5 years, the compound growth rate of Hygeia Medical's operating income, gross profit and adjusted net profit is more than 39%, 39.2%, 40.5% and 42.7% respectively, and the compound growth rate of Hygeia Medical is 37.8%, 40.2% and 56.2% respectively.
According to the group's unaudited management accounts, Hygeia Medical's revenue for the first two months of 2024 also increased by more than 40% compared to the same period last year.
Affected by this, the day after the announcement of Hygeia Medical, it rose 12.36% intraday, and by the close of the day, the increase (15.97%) was nearly 16%. This is a historical peak of Hygeia Medical's gains at the close of 2024.
As of the close of trading on March 28 (closed on the 29th), Hygeia Medical rose another 4.59% to a closing price of HK$31.9, with a total market capitalization of HK$20.146 billion and a turnover of HK$214 million.
The day after the results announcement, the stock price rose to the ground, which was good news for Hygeia Medical. However, compared with the more impressive performance, the reason why Hygeia Medical can get positive feedback from the market seems to be more curious to the industry. Combined with this announcement and related information, the editor will sort out some of the following for you.
The hospital business continued to grow benignly
It is understood that Hygeia Medical is a veteran oncology medical service group, which was listed on the main board of the Hong Kong Stock Exchange in June 2020. The Group's main sources of revenue are the operation of hospitals and other businesses, including third-party radiotherapy business and hospital custody business.
According to the announcement, in 2023, the revenue from the hospital business alone will account for 95.4% of the group's total revenue. As of December 31, 2023, Hygeia Medical's hospital business revenue was RMB3.890 billion (outpatient revenue of RMB1.351 billion and inpatient revenue of RMB2.539 billion), an increase of 28.5% over last year and a year-on-year increase of 35.4% after excluding the one-time impact of nucleic acid testing.
Hygeia Medical said that the increase in revenue from the hospital business was mainly due to the active expansion of diagnosis and treatment projects (especially oncology projects) in the group's hospitals, enriching treatment methods, and continuously improving the surgical capacity for complex diseases.
In 2023, Hygeia Medical completed a total of 83,770 surgeries, an increase of 34.6% over last year, of which the proportion of tertiary and quaternary surgeries and interventional surgeries has further increased.
In 2022, Hygeia Medical's hospital business revenue will be 3.027 billion yuan, a year-on-year increase of 40.8%, of which the outpatient and inpatient revenue will be 1.098 billion yuan and 1.930 billion yuan respectively, an increase of 48.1% and 37.0% year-on-year, respectively.
In 2021, the revenue of Hygeia Medical Hospital also increased significantly. The business income of the hospital was approximately RMB2.15 billion, an increase of 73.0% over the previous year, of which the revenue from outpatient medical services was approximately RMB741 million, an increase of 98.7% over the previous year, and the revenue from inpatient medical services was approximately RMB1.408 billion, an increase of 61.9% over the previous year.
Tumor characteristics are further enhanced
According to Frost & Sullivan's analysis, the revenue of the entire oncology medical service market will reach 700 billion yuan in 2025, with a compound growth rate of about 11.5% from 2021 to 2025.
In 2023, the revenue of Hygeia's oncology-related business will be 1.778 billion yuan, a year-on-year increase of 23.6%. As of December 31, 2023, Hygeia Medical managed or operated 15 oncology-focused hospitals, covering 12 cities in eight provinces in China.
As of the end of 2023, Hygeia Medical has made fruitful achievements in the construction of oncology and related disciplines, with more than 10 national, provincial and municipal key clinical specialties. The Department of Critical Care Medicine and General Surgery of Chongqing Hygeia Hospital, the Department of Oncology and Intensive Care Medicine of Chang'an Hospital, and the Department of Hematology of Suzhou Yongding Hospital are all key specialties at the municipal level.
Adhering to the development strategy of oncology medical business as the core, Hygeia Medical continues to strengthen the construction of oncology disciplines, and also pays attention to the introduction and training of high-end talents. At present, there are 4 experts who enjoy the special allowance of the State Council, 8 experts who serve as the chairman/deputy chairman of the national/all-army committee, and more than 60 experts who serve as the chairman/deputy chairman of the provincial and municipal levels.
As of December 31, 2023, Hygeia Medical had 1,188 senior professional and technical personnel, an increase of 380 over the same period last year, a year-on-year increase of 47%, and 7,483 medical professionals, an increase of 2,356 over the same period last year, a year-on-year increase of 46%. As of the end of 2023, a total of 761 medical professionals in the group have been promoted to a higher level of professional title.
Hygeia Medical disclosed in the announcement that since the acquisition, the revenue of Yixing Hygeia Hospital has increased by about 30.8% year-on-year compared with the same period last year, and the revenue of Chang'an Hospital has increased by about 28.9% year-on-year compared with the same period last year.
Screenshot source: Hygeia Medical Investor Relations WeChat public account
As the first hospital independently established by Hygeia Medical, Shanxian Hygeia Hospital achieved breakeven only nine months after its opening. Liaocheng Hygeia Hospital, which was put into operation in March 2022, achieved monthly breakeven in November of the same year when it opened, which is the fourth self-built hospital of Hygeia Medical and the first self-built hospital after listing.
Less than 5 years after its launch, the medical service network has been expanding
Since its launch in 2009, Hygeia Medical has gradually formed a network of hospitals and radiotherapy centers covering many provinces and cities in China through self-construction and acquisition.
As of March 2024, Hygeia Medical operates or manages 16 hospitals, including 4 tertiary hospitals and 12 secondary hospitals, covering 8 provinces and 13 cities across the country.
Prior to the listing, Hygeia Medical's February 2020 prospectus showed that Hygeia Medical owned 7 self-owned hospitals and 3 managed hospitals, and provided services to 14 hospital partners, including managed hospitals, for its radiotherapy centers.
From 2015 to 2020, in the past few years, Hygeia Medical has successively acquired a number of hospitals such as Longyan Bo'ai Hospital, Suzhou Canglang Hospital, Anqiu Hygeia Hospital, and Wuhai Hygeia Hospital, and its self-built Chongqing Hygeia and Heze Hygeia hospitals have also opened during this period.
After the listing of the Hong Kong stock market in 2020, Hygeia Medical began to frequently acquire tertiary hospitals. In 2021 alone, Hygeia Medical completed the acquisition of two hospitals, Hezhou Guangji Hospital and Suzhou Yongding Hospital. The former is a tertiary hospital, the second phase has obtained the construction project planning permit, is expected to add about 500 beds after commissioning, when the hospital is expected to open 1,400 beds, the latter second phase of the project has also started preparations, the future plans to add about 500 beds, the hospital is expected to open 1,500 beds after commissioning.
In 2023, Hygeia Medical will continue to increase the pace of expansion, and has successively acquired three hospitals: Yixing Hygeia Hospital (second grade), Xi'an Chang'an Hospital (third grade), and Qufu Chengdong Cancer Hospital (second grade). Among them, Xi'an Chang'an Hospital is a tertiary first-class general hospital with 1,100 open beds, and the third phase of the hospital project has started preparations, and the number of open beds is expected to reach 2,100 after it is put into use.
In addition to the acquisition of hospitals, Hygeia Medical currently has three new hospital projects, namely Dezhou Hygeia Hospital, Wuxi Hygeia Hospital and Changshu Hygeia Hospital, with planned beds ranging from 800 to 1,200 beds. In addition to Dezhou Hygeia, which just passed the acceptance of the tertiary general hospital in March, Wuxi and Changshu Hygeia are expected to be delivered in 2025.
In addition, the second phase of the project of many hospitals, including Chongqing Hygeia Hospital, Shanxian Hygeia Hospital, Chengwu Hygeia Hospital, Kaiyuan Jiehua Hospital, etc., has also made varying degrees of progress.
Among them, the second phase of Chongqing Hygeia Hospital and Shanxian Hygeia Hospital have been put into use in February and July 2023 respectively, and the current open beds of the hospital have reached 1,500. Chongqing Hygeia Hospital is now a tertiary general hospital, and the next goal is to create a tertiary first-class general hospital with oncology specialties.
The second phase of Chengwu Hygeia Hospital will be put into operation in January 2024, adding 350 beds, and the hospital can currently open 500 beds. The second phase of Kaiyuan Jiehua Hospital has obtained a construction project planning permit, with a planned construction area of about 15,000 square meters and a planned new bed of about 500.
This time, while announcing the 2023 development report card, Hygeia Medical also stated that in the future, the Group will continue to focus on the core business of oncology, continue to expand its business scale, actively promote the construction of new hospital projects and the construction of the second phase of existing hospitals, actively merge and acquire high-quality hospital targets, improve the oncology medical service capabilities of target hospitals through post-investment integration, and continue to strengthen the Group's industry integration capabilities in oncology medical care.
It is foreseeable that with the successive commissioning of new hospitals, existing hospital expansion projects and continuous extension mergers and acquisitions, Hygeia Medical will develop rapidly and be one step closer to the bed plan of "achieving more than 12,000 beds in December 2024". (This article is published by "Seeing the Medical World", and reprinting must be authorized, and the author and source should be indicated at the beginning of the article.) ）