HK Stock Market Move | HYGEIA HEALTH (06078) fell more than 3%, institutions believe that the company's sales revenue may be lower than market expectations, and last year's revenue and net profit for shareholders have been adjusted downwards.

HYGEIA HEALTH (06078) fell more than 3%. As of the time of writing, it was down 2.36% at HK$16.52, with a trading volume of HK$159.527 million. Zhongtai International released a research report stating that they recently reviewed the operational situation of HYGEIA HEALTH in the second half of 2024. Due to weak consumer purchasing power at the end and stricter control of medical insurance expenses, the sales revenue in the second half of the year may be lower than market expectations. The bank has lowered its revenue and net profit forecasts for 2024 by 6.5% and 7.5% respectively. The bank pointed out that to relieve the operating pressure of medical institutions, the National Health Insurance Administration recently announced that it will comprehensively promote instant settlement of health insurance, reducing the time for health insurance funds to be settled to hospitals from the original 40-60 days. The bank believes that in the long run, this policy will help alleviate the financial pressure on medical institutions. However, according to the bank's understanding of multiple hospital operators, due to different levels of health insurance fund balances in different regions, the timing of policy implementation is expected to vary, so the actual impact on enterprise profitability may take some time. Among the hospitals under HYGEIA, some located in third and fourth-tier cities with relatively insufficient health insurance funds are expected to be affected in the short term. Taking the above factors into consideration, the bank has lowered its revenue forecasts for 2025-26E by 5.3% and 5.7%, and net profit forecasts by 7.4% and 8.3%. According to the adjusted profit model, the bank expects a CAGR of 13.3% for shareholder net profit from 2023-26E.