Aier Eye Hospital Group Co Ltd
SZSE:300015
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Intrinsic Value
The intrinsic value of one Aier Eye Hospital Group Co Ltd stock under the Base Case scenario is 18.1 CNY. Compared to the current market price of 14.28 CNY, Aier Eye Hospital Group Co Ltd is Undervalued by 21%.
The Intrinsic Value is calculated as the average of DCF and Relative values:
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Fundamental Analysis
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Aier Eye Hospital Group Co., Ltd., founded in 2001 and headquartered in Changsha, China, has emerged as a leading player in the ophthalmology healthcare sector in Asia. Starting as a single eye clinic, it has grown exponentially to encompass a vast network of over 60 hospitals and numerous outpatient service centers across China and beyond. The company focuses on providing comprehensive eye care services, including cataract surgery, myopia treatment, and other advanced healthcare solutions, leveraging cutting-edge technology and innovative techniques. With a dedicated team of skilled specialists and a commitment to enhancing patient outcomes, Aier aims to address the increasing demand for vi...
Aier Eye Hospital Group Co., Ltd., founded in 2001 and headquartered in Changsha, China, has emerged as a leading player in the ophthalmology healthcare sector in Asia. Starting as a single eye clinic, it has grown exponentially to encompass a vast network of over 60 hospitals and numerous outpatient service centers across China and beyond. The company focuses on providing comprehensive eye care services, including cataract surgery, myopia treatment, and other advanced healthcare solutions, leveraging cutting-edge technology and innovative techniques. With a dedicated team of skilled specialists and a commitment to enhancing patient outcomes, Aier aims to address the increasing demand for vision care in a rapidly aging population, underpinned by a robust business model that merges quality healthcare delivery with strategic expansion.
As an investor, Aier Eye Hospital presents a compelling opportunity in the burgeoning health sector. With healthcare spending expected to rise in China and globally, Aier's prominence in eye care positions it well to tap into this growing market. The company's commitment to research and development ensures continuous innovation and adaptation to emerging healthcare trends, setting it apart from traditional healthcare providers. Furthermore, Aier's expansion strategy, including potential international outreach, offers a promise of sustained growth. By investing in Aier, one is not just supporting a service provider but joining a forward-thinking healthcare institution that is poised to redefine eye care and generate significant returns.
Aier Eye Hospital Group Co., Ltd. is a leading healthcare provider in China, specializing in ophthalmology. The core business segments of Aier Eye Hospital typically include:
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Ophthalmic Medical Services: This is the primary segment, focusing on providing various eye care services, diagnostics, and surgical procedures. It includes cataract surgery, refractive surgeries (like LASIK), treatment for glaucoma, and management of retinal diseases.
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Outpatient Services: Aier operates multiple outpatient clinics that offer routine eye examinations, consultations, and minor procedures. These facilities are designed to cater to general eye care needs and promote preventive care.
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Glasses and Contact Lens Retail: Aier also engages in the retail of optical products, including prescription glasses and contact lenses. This segment supports the company’s goal of comprehensive eye care, providing patients with necessary visual aids.
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Research and Development: The company invests in R&D to innovate and improve ophthalmic treatment methods and technologies. This includes collaborations with academic institutions and participating in clinical trials related to new eye care products and treatments.
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Education and Training: Aier is involved in training ophthalmologists and eye care professionals, offering education programs to enhance skills in eye surgery and other related areas. This contributes to the development of human resources in the field of ophthalmology.
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International Expansion: In recent years, Aier has been expanding its footprint internationally, potentially through partnerships or acquisitions in various countries, which is aimed at tapping into growing demands for eye care services globally.
These segments contribute to Aier Eye Hospital's business model, positioning it as a comprehensive eye care provider that prioritizes patient needs while also focusing on growth and innovation in the healthcare industry.
Aier Eye Hospital Group Co., Ltd. has developed several unique competitive advantages that differentiate it from its rivals in the healthcare sector, particularly in ophthalmology. Here are some key factors contributing to its competitive edge:
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Specialized Focus on Ophthalmology: Aier Eye Hospital specializes exclusively in eye care, which allows it to develop deep expertise and a strong reputation in this field. This laser focus helps in attracting patients specifically seeking advanced eye care.
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Extensive Hospital Network: Aier has established a vast network of eye hospitals and clinics across China and internationally. This extensive presence allows for better access to patients and strengthens brand recognition.
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Comprehensive Service Offerings: The group offers a wide range of services, including diagnosis, treatment, and preventive care for various eye conditions. This comprehensive suite attracts customers looking for one-stop solutions.
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Strong R&D and Technological Investment: Aier invests significantly in research and development, ensuring access to the latest medical technologies and treatments. This commitment to innovation enables the group to stay ahead of competitors in providing advanced eye care.
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Highly Skilled Medical Staff: The company places a strong emphasis on recruiting and training top-tier ophthalmologists and healthcare professionals. This focus ensures high-quality patient care and enhances patient trust and satisfaction.
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Franchise Model and Partnerships: Aier’s franchise and partnership model allows for rapid expansion while leveraging local knowledge and expertise. This operational flexibility can lead to accelerated growth compared to traditional models.
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Brand Reputation: Over the years, Aier has built a strong brand known for quality and specialized care. This positive reputation attracts patients and helps in customer retention.
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Advanced Surgical Techniques: The group often utilizes cutting-edge surgical techniques and methods, which can lead to better patient outcomes compared to competitors who may not have access to the same level of technology.
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Strong Financial Performance and Stability: Aier’s solid financial standing allows for continuous investments in technology, staff, and expansion, creating barriers to entry for smaller or less financially stable competitors.
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Government Support and Compliance: Aier often aligns with government healthcare initiatives and policies, which can enhance its operational capabilities and access to funding or support.
By leveraging these competitive advantages, Aier Eye Hospital Group can effectively position itself as a leader in the eye care industry and sustain its growth in a highly competitive market.
Aier Eye Hospital Group Co. Ltd., as a prominent player in the healthcare industry, particularly in ophthalmology, faces several risks and challenges in the near future:
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Regulatory Compliance: The healthcare sector is heavily regulated. Changes in regulatory requirements, including new healthcare policies and standards, could pose challenges in maintaining compliance and may increase operational costs.
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Market Competition: The ophthalmology market is becoming increasingly competitive, with new entrants and existing players expanding their services. Aier must continually innovate and differentiate its offerings to maintain market share.
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Economic Conditions: Economic downturns or fluctuations in consumer spending can impact the demand for elective procedures. Reduced patient spending might affect revenue growth.
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Technological Advancements: Keeping up with rapid technological advancements in medical devices and treatment methodologies is crucial. Failure to adopt or integrate new technologies may result in a competitive disadvantage.
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Healthcare Costs: Rising healthcare costs and pressures to reduce expenses can limit growth opportunities. The company must manage costs while delivering high-quality care.
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Supply Chain Disruptions: Global supply chain disruptions can affect the availability of medical supplies and equipment, which is critical for the operation of eye hospitals.
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Talent Acquisition and Retention: Attracting and retaining skilled healthcare professionals is essential for maintaining quality service. Talent shortages in the medical field can hinder operational capabilities.
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Public Health Crises: The ongoing threat of pandemics or other public health emergencies can lead to increased operational challenges and may reduce elective procedures.
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Patient Satisfaction and Reputation: Maintaining high levels of patient satisfaction is essential for brand reputation and repeat business. Negative reviews or incidents can have lasting impacts.
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International Expansion Risks: If Aier pursues international expansion, it may face additional challenges such as understanding local regulations, market dynamics, and healthcare standards.
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Insurance Reimbursement Policies: Changes in insurance reimbursement policies may impact revenue streams. Dependence on certain reimbursement frameworks may expose the company to financial risks.
Addressing these challenges strategically while maintaining a focus on quality patient care and operational efficiency will be essential for Aier Eye Hospital Group's sustained success.
Revenue & Expenses Breakdown
Aier Eye Hospital Group Co Ltd
Balance Sheet Decomposition
Aier Eye Hospital Group Co Ltd
Current Assets | 9.6B |
Cash & Short-Term Investments | 6.1B |
Receivables | 2.4B |
Other Current Assets | 1.1B |
Non-Current Assets | 22.1B |
Long-Term Investments | 1.5B |
PP&E | 9.9B |
Intangibles | 8.6B |
Other Non-Current Assets | 2.1B |
Current Liabilities | 6.8B |
Accounts Payable | 2.2B |
Accrued Liabilities | 828.4m |
Short-Term Debt | 1.4B |
Other Current Liabilities | 2.4B |
Non-Current Liabilities | 5.5B |
Long-Term Debt | 4.2B |
Other Non-Current Liabilities | 1.3B |
Earnings Waterfall
Aier Eye Hospital Group Co Ltd
Revenue
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20.6B
CNY
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Cost of Revenue
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-10.3B
CNY
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Gross Profit
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10.3B
CNY
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Operating Expenses
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-5.5B
CNY
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Operating Income
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4.8B
CNY
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Other Expenses
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-1.2B
CNY
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Net Income
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3.6B
CNY
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Free Cash Flow Analysis
Aier Eye Hospital Group Co Ltd
CNY | |
Free Cash Flow | CNY |
Profitability Score
Profitability Due Diligence
Aier Eye Hospital Group Co Ltd's profitability score is 64/100. The higher the profitability score, the more profitable the company is.
Score
Aier Eye Hospital Group Co Ltd's profitability score is 64/100. The higher the profitability score, the more profitable the company is.
Solvency Score
Solvency Due Diligence
Aier Eye Hospital Group Co Ltd's solvency score is 70/100. The higher the solvency score, the more solvent the company is.
Score
Aier Eye Hospital Group Co Ltd's solvency score is 70/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
Price Targets Summary
Aier Eye Hospital Group Co Ltd
According to Wall Street analysts, the average 1-year price target for Aier Eye Hospital Group Co Ltd is 14.7 CNY with a low forecast of 7.07 CNY and a high forecast of 21.67 CNY.
Dividends
Current shareholder yield for Aier Eye Hospital Group Co Ltd is .
Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?
Profile
Country
Industry
Market Cap
Dividend Yield
Description
Aier Eye Hospital Group Co., Ltd. engages in the management and operation of ophthalmic chain medical institutions. The company is headquartered in Changsha, Hunan and currently employs 26,970 full-time employees. The company went IPO on 2009-10-30. is a China-based ophthalmic medical institution. The firm is mainly engaged in ophthalmic diseases treatment, surgical services and medical optometry. The firm mainly provides corneal refractive surgery, cataract operation, anterior segment operation, posterior segment operation and optometry services. The firm mainly operates its business in domestic market, with Central China as its main market.
Contact
IPO
Employees
Officers
The intrinsic value of one Aier Eye Hospital Group Co Ltd stock under the Base Case scenario is 18.1 CNY.
Compared to the current market price of 14.28 CNY, Aier Eye Hospital Group Co Ltd is Undervalued by 21%.