Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<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>
</ul>



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)

<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

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of September 29th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We have highlighted flows for Meituan, Tencent, ICBC and Xpeng.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of September 29th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We have highlighted flows for Meituan, Tencent, ICBC and Xpeng.


Hong Kong Connect Flows (Sep 29th): Meituan, Tencent, ICBC, Xpeng

<ul>
<li>
<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>
</ul>



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

<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.

52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

EC Healthcare (2138 HK)