HK Stock Market Move | CR MEDICAL (01515) fell by more than 4% in early trading, due to the impact of discrepancies in two years of medical insurance settlements. Institutions expect a slight decrease in hospital business revenue this year.

CR MEDICAL (01515) fell by more than 4% in the morning session, and as of the time of writing, it has fallen by 3.63% to HK$3.98 with a turnover of HK$104.294 million. Tianfeng pointed out that as of the first half of 2024, CR MEDICAL operates a total of 127 medical institutions in 10 provinces and cities in China, including 13 tertiary hospitals and 23 secondary hospitals. The operating revenue of the hospital business segment in the first half of 2024 was 4.6 billion yuan, a slight decrease of 3.0% compared to the same period last year. The outpatient and inpatient visits both achieved growth in the first half of 2024, with the outpatient and inpatient visits of self-owned hospitals reaching approximately 5.05 million and 280,000 respectively, representing a year-on-year growth of 3.5% and 3.0% respectively; affected by the settlement differences in the past two years, both outpatient and inpatient revenues have declined, dropping by 2.0% and 8.8% respectively. GF SEC previously stated that due to the settlement differences in the past two years, it is estimated that hospital business revenue in 2024 will slightly decrease; it is predicted that the impact of settlement differences in 2025-2026 will decrease, and hospital business revenue is expected to increase by 4-5% year-on-year. The continuous cost reduction and efficiency improvement will mitigate the impact of settlement differences in the past two years, and it is expected that the internal performance will steadily grow in 2024, with the net profit attributable to shareholders expected to grow by 8.6% compared to 2023 after excluding the impairment in Huaiyin.