HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Puxiang Healthcare Holding / Equity Capital Markets

<ul>
<li>Hospital operation is an asset-heavy industry with large balance of fixed assets and intangible assets. So, there is a situation of expense “front-loading” and profit “back-loading” in Puxiang.</li>
<li>Puxiang’s single-digit net profit margin is unsatisfactory. Net profit CAGR is much lower than revenue CAGR. Considering VBP and DRGs/DIP, Puxiang’s future net profit performance is unsettling.</li>
<li>Due to concerns on profitability and future growth outlook, we think valuation of Puxiang should be lower than Topchoice, Aier, Hygeia, <a href="https://www.smartkarma.com/entities/jinxin-fertility-group-ltd" target="_blank" data-smartkarma-citation="entities:28003:1" rel="noopener">Jinxin</a>, but could be higher than <a href="https://www.smartkarma.com/entities/china-resources-medical-holdings" target="_blank" data-smartkarma-citation="entities:357:1" rel="noopener">China Resources Medical</a>
</li>
</ul>


Hospital operation is an asset-heavy industry with large balance of fixed assets and intangible assets. So, there is a situation of expense “front-loading” and profit “back-loading” in Puxiang.
Puxiang’s single-digit net profit margin is unsatisfactory. Net profit CAGR is much lower than revenue CAGR. Considering VBP and DRGs/DIP, Puxiang’s future net profit performance is unsettling.
Due to concerns on profitability and future growth outlook, we think valuation of Puxiang should be lower than Topchoice, Aier, Hygeia, Jinxin, but could be higher than China Resources Medical



Pre-IPO Puxiang Healthcare Holding - Weak Profitability Is the Major Concern

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Puxiang Healthcare Holding (PHH HK)

Pre-IPO Puxiang Healthcare Holding - Weak Profitability Is the Major Concern

Hospital operation is asset-heavy industry.Puxiang's net profit CAGR is lower than revenue CAGR,with unsatisfactory net profit margin and...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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