HK Stock Market Move | HYGEIA HEALTH (06078) drops by more than 7% again, institutions predict that the company's sales revenue in the second half of 2024 may fall short of market expectations.

Hygeia Health (06078) plunged by more than 7%, down 7.21% to HK$15.44 as of press time, with a turnover of HK$1.17 billion. China Thai International released a research report stating that they recently reviewed Hygeia Health's operational situation in the second half of 2024. It is expected that due to factors such as the weak consumption ability of end patients and stricter control on medical insurance costs, sales revenue in the second half of the year may fall short of market expectations. As a result, revenue and net profit forecasts for 2024 have been revised downward by 6.5% and 7.5% respectively. The National Medical Insurance Bureau recently announced that it will comprehensively promote real-time settlement of medical insurance. In the long run, this policy is expected to help alleviate the financial pressure on medical institutions. However, due to differences in the medical insurance surplus in various regions, the implementation time of the policy is expected to vary, and it may take some time for the policy to actually have an impact on the profitability of enterprises. The bank pointed out that some of the hospitals under Hygeia are located in third and fourth-tier regions where medical insurance funds are relatively insufficient, and it is expected that the operations of hospitals in these regions will continue to be affected in the short term.