Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>In 1H25, <a href="https://www.smartkarma.com/entities/hygeia-healthcare-group" target="_blank" data-smartkarma-citation="entities:28875:1" rel="noopener">Hygeia Healthcare Group (6078 HK)</a> reported revenue decline of 16% YoY to RMB 1,990 million mainly dragged by 18% YoY decrease in inpatient revenues.</li>
<li>Hygeia’s gross profit margin contracted 520bps YoY to 26.6%. Net profit decreased 36% on higher finance cost despite of income tax expenses being lower.</li>
<li>Incremental growth advantage from inorganic expansion slowly wanes out for Hygeia. Competitive pressure limits room for incremental price realization.</li>
</ul>


In 1H25, Hygeia Healthcare Group (6078 HK) reported revenue decline of 16% YoY to RMB 1,990 million mainly dragged by 18% YoY decrease in inpatient revenues.
Hygeia’s gross profit margin contracted 520bps YoY to 26.6%. Net profit decreased 36% on higher finance cost despite of income tax expenses being lower.
Incremental growth advantage from inorganic expansion slowly wanes out for Hygeia. Competitive pressure limits room for incremental price realization.


Hygeia Healthcare (6078 HK): Prolonged Winter? Or Is There Light Visible At the End of the Tunnel?

Equity Capital Markets

Bayzed Health Group / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bayzed-health-group" target="_blank" data-smartkarma-citation="entities:42191:1" rel="noopener">Bayzed Health Group (BHG HK)</a> launched its Hongkong IPO aiming to raise up to HK$ 900 million. The company plans to sell 133 million shares at HK$4.22–6.75 per share.</li>
<li>The company plans to utilize the IPO proceeds to continuously strengthening the full-cycle oncology healthcare services primarily through purchasing medical equipment and recruiting medical professionals.</li>
<li>Bayzed Health is an oncology healthcare group which posted revenue of RMB 1,189 million in 2024, up by 11% YoY. Gross margins improve; net losses narrow too.</li>
</ul>



Bayzed Health Group (BHG HK) launched its Hongkong IPO aiming to raise up to HK$ 900 million. The company plans to sell 133 million shares at HK$4.22–6.75 per share.
The company plans to utilize the IPO proceeds to continuously strengthening the full-cycle oncology healthcare services primarily through purchasing medical equipment and recruiting medical professionals.
Bayzed Health is an oncology healthcare group which posted revenue of RMB 1,189 million in 2024, up by 11% YoY. Gross margins improve; net losses narrow too.


Bayzed Health Group IPO: Shows Flare; Still a Tough Road Ahead; Can Avoid The Issue

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>The positioning of Bayzed is just “a supplement to public hospitals system”, with limited scale and competitiveness, which is a point that investors may need to be aware of.</li>
<li>A big problem in the operation of Bayzed is the loss status/weak profitability. At current gross margin level, it would be difficult for Bayzed to deliver good returns for investors.</li>
<li>Valuation of Bayzed should be lower than Inkon Life Technology and Hygeia. The Pre-IPO valuation is not cheap, and the valuation upside potential may be limited considering weak profitability.  </li>
</ul>


The positioning of Bayzed is just “a supplement to public hospitals system”, with limited scale and competitiveness, which is a point that investors may need to be aware of.
A big problem in the operation of Bayzed is the loss status/weak profitability. At current gross margin level, it would be difficult for Bayzed to deliver good returns for investors.
Valuation of Bayzed should be lower than Inkon Life Technology and Hygeia. The Pre-IPO valuation is not cheap, and the valuation upside potential may be limited considering weak profitability.  


Pre-IPO Bayzed Health Group (PHIP Updates) - Some Points Worth the Attention

<ul>
<li>The expansion space of BenQ is severely limited as the market has been saturated in Jiangsu Province. Due to DRG, future revenue/net profit growth would continue to be under pressure. </li>
<li>Low profit margin of general hospitals is a common problem in this industry due to pain points of business model.It’s difficult to achieve improvement.Investors need to be aware of this.</li>
<li>BenQ’s valuation should be lower than Hygeia due to weaker profitability, smaller revenue scale, lower growth outlook.Post-money valuation before IPO of US$375 million (or about RMB2.7 billion) is already expensive</li>
</ul>


The expansion space of BenQ is severely limited as the market has been saturated in Jiangsu Province. Due to DRG, future revenue/net profit growth would continue to be under pressure. 
Low profit margin of general hospitals is a common problem in this industry due to pain points of business model.It’s difficult to achieve improvement.Investors need to be aware of this.
BenQ’s valuation should be lower than Hygeia due to weaker profitability, smaller revenue scale, lower growth outlook.Post-money valuation before IPO of US$375 million (or about RMB2.7 billion) is already expensive


Pre-IPO BenQ BM Holding (PHIP Updates) - Some Points Worth the Attention

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hygeia-healthcare-group" target="_blank" data-smartkarma-citation="entities:28875:1" rel="noopener">Hygeia Healthcare Group (6078 HK)</a> reported revenue growth of 9% YoY to RMB4,446 million, mainly driven by a 11% YoY growth in hospital business.</li>
<li>Hygeia’s gross profit margin contracted 170bps YoY to 29.9%. Net profit decreased 13% on higher finance cost despite of income tax expenses being lower.</li>
<li>Accelerated organic growth and strengthening of margins are crucial to boost valuation.</li>
</ul>



Hygeia Healthcare Group (6078 HK) reported revenue growth of 9% YoY to RMB4,446 million, mainly driven by a 11% YoY growth in hospital business.
Hygeia’s gross profit margin contracted 170bps YoY to 29.9%. Net profit decreased 13% on higher finance cost despite of income tax expenses being lower.
Accelerated organic growth and strengthening of margins are crucial to boost valuation.


Hygeia Healthcare Group (6078 HK): Slower Revenue Growth and Margin Deterioration Are Worrisome

China

Hygeia Healthcare is a prominent oncology healthcare group in China, dedicated to enhancing the accessibility and affordability of cancer treatment services. The company operates a network of oncology hospitals, providing comprehensive services from screening and diagnosis to various treatment modalities like chemotherapy, immunotherapy, and radiotherapy. It also offers radiotherapy consulting and equipment licensing. Hygeia Healthcare was founded in 2009 and is headquartered in Shanghai, China.

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Hygeia Healthcare (6078 HK)