Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

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<a href="https://www.smartkarma.com/entities/ec-healthcare" target="_blank" data-smartkarma-citation="entities:22630:1" rel="noopener">EC Healthcare (2138 HK)</a> expects to achieve a record-high sales volume of no less than HK$1.8 in H1FY23, representing a no less than 17% y/y increase.  </li>
<li>The company is optimistic about its business development as the Hong Kong government’s pandemic policy stance is heading towards “normalization” and recently further relaxed quarantine arrangements for inbound travelers.</li>
<li>With the economy reopening, the company is in a position to reap the benefit of M&amp;A worth HK$641 million completed in FY22.  </li>
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EC Healthcare (2138 HK) expects to achieve a record-high sales volume of no less than HK$1.8 in H1FY23, representing a no less than 17% y/y increase.  
The company is optimistic about its business development as the Hong Kong government’s pandemic policy stance is heading towards “normalization” and recently further relaxed quarantine arrangements for inbound travelers.
With the economy reopening, the company is in a position to reap the benefit of M&amp;A worth HK$641 million completed in FY22.  


EC Healthcare (2138 HK): Record High Sales in H1FY23; Medical Segment Remains Key Growth Driver

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<a href="https://www.smartkarma.com/entities/ec-healthcare" target="_blank" data-smartkarma-citation="entities:22630:1" rel="noopener">EC Healthcare (2138 HK)'s</a> Chairman and CEO acquired 543,000 shares at an average price of HKD9.1943 per share, thereby increasing his stake to 61.17% of the issued share capital.</li>
<li>H1FY22 and preliminary results for Q3FY22 shows continued business recovery. Medical services, which contributes 52.5% of total revenue continue to be the key growth driver.</li>
<li>In January, EC Healthcare acquired 55% equity interest in Bayley &amp; Jackson Dental Surgeons Limited for HKD129 million. Bayley &amp; Jackson operates seven dental clinics in Hong Kong.</li>
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EC Healthcare (2138 HK)'s Chairman and CEO acquired 543,000 shares at an average price of HKD9.1943 per share, thereby increasing his stake to 61.17% of the issued share capital.
H1FY22 and preliminary results for Q3FY22 shows continued business recovery. Medical services, which contributes 52.5% of total revenue continue to be the key growth driver.
In January, EC Healthcare acquired 55% equity interest in Bayley &amp; Jackson Dental Surgeons Limited for HKD129 million. Bayley &amp; Jackson operates seven dental clinics in Hong Kong.


EC Healthcare (2138 HK): An Attractive Idea with Insider Buying and Continued Business Recovery

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<a href="https://www.smartkarma.com/entities/ec-healthcare" target="_blank" data-smartkarma-citation="entities:22630:1" rel="noopener">EC Healthcare (2138 HK)</a> reported record high revenue of HK$3.9B in FY23 and started FY24 on a strong note, with Q1FY24 revenue increasing 23% YoY, driven by medical services segment.</li>
<li>Cost pressure is negatively impacting the bottom line. The company is reporting decelerating EBITDA and net profit margins since FY20. ROE deteriorated to 4.5% in FY23 from 33% in FY19.</li>
<li>The company is well-positioned to see turnaround in profitability with the resumption of Mainland China visitors in Hong Kong providing impetus to high margin earning aesthetic business and cost optimization.</li>
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EC Healthcare (2138 HK) reported record high revenue of HK$3.9B in FY23 and started FY24 on a strong note, with Q1FY24 revenue increasing 23% YoY, driven by medical services segment.
Cost pressure is negatively impacting the bottom line. The company is reporting decelerating EBITDA and net profit margins since FY20. ROE deteriorated to 4.5% in FY23 from 33% in FY19.
The company is well-positioned to see turnaround in profitability with the resumption of Mainland China visitors in Hong Kong providing impetus to high margin earning aesthetic business and cost optimization.


EC Healthcare (2138 HK): Surging Revenue; Poised for Profitability Improvement; Future Looks Bright

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>Strong FY23 top-line growth despite harsh macro environment.</li><li>EC Healthcare (ECH) reported FY23 revenue of HK$3,875mn, up 33% YoY, in line with our forecast, mainly driven by sustainable demand for medical services amid COVID-19 pandemic.</li><li>ECH booked total net profit of HK$107mn, down 60% YoY, with attributable net profit of HK$70mn, down 65% YoY, due to changes in business mix, increase in operating costs caused by inflation as well as the slow ramp-up of newly-opened stores under COVID disruptions. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Strong FY23 top-line growth despite harsh macro environment.EC Healthcare (ECH) reported FY23 revenue of HK$3,875mn, up 33% YoY, in line with our forecast, mainly driven by sustainable demand for medical services amid COVID-19 pandemic.ECH booked total net profit of HK$107mn, down 60% YoY, with attributable net profit of HK$70mn, down 65% YoY, due to changes in business mix, increase in operating costs caused by inflation as well as the slow ramp-up of newly-opened stores under COVID disruptions. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

EC Healthcare (2138 HK) – Recovering Cross-Border Medical Consumption in FY24

<ul><li>EC Healthcare (ECH) expected the sales volume (i.e., contracted sales) to increase by no less than 24% YoY to HK$3.8bn for FY23 (ended in Mar 2023), with +21%/ +27% YoY growth for FY1H23/ FY2H23, respectively.</li><li>Specifically, sales volume of medical services maintained strong growth of 39% YoY in FY23 (+36%/ +41% YoY for FY1H23/ FY2H23); sales volume of aesthetic medical and wellness services in HK &amp; Macau slightly grew by 4% YoY in FY23 (-9%/ +18% YoY for FY1H23/ FY2H23) while that in Mainland China declined by 25% in FY23 (-15%/ -34% YoY for FY1H23/ FY2H23).</li><li>The sluggish sales volume growth in aesthetic medical and wellness services was caused by COVID disruptions in HK &amp; Macau and Mainland. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

EC Healthcare (ECH) expected the sales volume (i.e., contracted sales) to increase by no less than 24% YoY to HK$3.8bn for FY23 (ended in Mar 2023), with +21%/ +27% YoY growth for FY1H23/ FY2H23, respectively.Specifically, sales volume of medical services maintained strong growth of 39% YoY in FY23 (+36%/ +41% YoY for FY1H23/ FY2H23); sales volume of aesthetic medical and wellness services in HK &amp; Macau slightly grew by 4% YoY in FY23 (-9%/ +18% YoY for FY1H23/ FY2H23) while that in Mainland China declined by 25% in FY23 (-15%/ -34% YoY for FY1H23/ FY2H23).The sluggish sales volume growth in aesthetic medical and wellness services was caused by COVID disruptions in HK &amp; Macau and Mainland. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

EC Healthcare (2138 HK) – Rebound of cross-border consumption to fuel growth in FY24

Hong Kong

EC Healthcare operates as a non-hospital medical service provider. The Company principally engages in the provision of medical, aesthetic medical, beauty and wellness services, and sale of skincare, healthcare and beauty products. EC Healthcare conducts businesses in Hong Kong, Macau, and Mainland China.

EC Healthcare (2138 HK)