Aier's revenue structure is actually very poor. The positive impact of aging on performance won't hedge against the negative impact of declining birth rate.The high-growth story will eventually fizzle
Boomeranged on Tue, 10 Oct 2023 09:14
Aier will continue to underperform because the growth rate of total retail sales of consumer goods is falling too fast. This means Aier's endogenous growth rate (3x growth rate of total retail sales of consumer goods) will also decline. Aier has to acquire more hospitals to keep the story going, but overall hospital asset quality is getting worse. At current price level, we remain bearish on Aier.
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