Aier Eye Hospital Group (300015.CH) - More than Just Bribery Scandal

Equity Bottom-Up

171 Views, 20 Jan 2022 09:11

EXECUTIVE SUMMARY

According to public news, the recent bribery scandal of Aier Eye Hospital Group (300015 CH) has raised widespread concern. Shenzhen stock Exchange also issued a letter of inquiry.
The development model based on M&A funds helps rapid expansion, but also leads to profit orientation and large goodwill balance, indicating potential risks.
The biggest risk is the revolutionary technology/drugs to disrupt the business value of Aier’s medical services. So, Aier could be a short-term trade, but not a long-term hold.

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