Hygeia Healthcare (6078) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024 increased by 35.4% year-over-year to RMB2,381.9 million, with hospital business accounting for 96.9% of total revenue and strong growth in oncology-related services.

• Net profit rose 15.0% year-over-year to RMB385.2 million, while non-IFRS adjusted net profit increased 15.5% to RMB400.6 million.

• The group managed or operated 16 oncology-focused hospitals across 13 cities in 8 provinces, with ongoing expansion and new hospital projects underway.

Financial highlights

• Gross profit grew 32.5% year-over-year to RMB756.4 million, with a gross profit margin of 31.8%.

• EBITDA increased 28.7% year-over-year to RMB647.0 million; operating profit up 22.4% to RMB513.7 million.

• Basic and diluted earnings per share rose 15.1% to RMB0.61.

• Total assets reached RMB11,004.5 million, up 2.5% from December 31, 2023.

• Capital expenditures decreased 39.0% to RMB338.3 million.

Outlook and guidance

• The group will continue expanding its oncology hospital network, invest in new and existing hospital projects, and pursue favorable M&A opportunities.

• Plans to further develop self-financed services, strengthen cooperation with commercial insurance providers, and improve patient experience.

• A share repurchase mandate of up to RMB200 million was approved to demonstrate confidence in business prospects.