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    Home > Medical News > Medical World News > Review of medical service IPO in 2019: growth is the king

    Review of medical service IPO in 2019: growth is the king

    • Last Update: 2020-02-18
    • Source: Internet
    • Author: User
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    "Talk about exit" has become an inevitable theme in the current capital more and more rational environment While a wave of new upsurge has been set off in the Innovation Medicine and medical equipment sector due to the launch of science and technology innovation board, the medical service sector is still on the up and down quest From the complete separation of Huarun Phoenix, the incident of gene editing in the United States and the acceleration of integration of private medical checkpoints, the shock wave of the two tier market in the medical service industry has been gradually digested in the past year With the redevelopment of industry standards and rules, the valuation bubble has subsided, leading enterprises with sustainable growth and replication capabilities have highlighted the premium capability Looking back on the IPO report card of medical service sector in 2019 and the achievements of listed medical service companies in the secondary market, we believe that enterprises recognized by the capital market in the future not only need to have the ability to "rush" in the segmented track in the business model, but also need to have a lasting "Endurance" in business expansion and profit growth The medical service market in 2019 is called to start from a low ebb In addition to the aftershocks brought by the lack of credit of the industry's representative listed companies since 2018, as the most active market for medical service companies to go public, the trend of normalization of "new shares breaking", "low valuation", "poor liquidity" and other phenomena also makes investors' confidence in the Hong Kong stock market decline Especially in the first half of the year, the main business growth of listed chain service enterprises, such as new century medical, Corning hospital and Ruici medical, is limited and the expansion is weak The index of medical service industry is falling all the way and is gradually far away from A-share The market questions whether the IPO of Hong Kong stock can give a fair price to the enterprise and guarantee the future return of investors Fortunately, the successful IPO and subsequent performance of new oxygen, Jinxin and other companies have effectively restored market confidence In the past year, a total of 4 medical service companies have landed in the overseas market From the perspective of specialty fields, the four companies cover medical beauty, assisted reproduction and Ophthalmology, which shows that medical services with consumption attribute have attracted capital attention in recent years At the same time, due to the characteristics of low medical risk and not affected by medical insurance control fees, the difficulty and obstacles to achieve IPO are relatively low In addition, in the past, medical service enterprises often "dissuaded" many investors because of the long cultivation time and exit cycle, and the natural capital investment obstacles that most RMB funds are difficult to match From the perspective of the medical service companies listed in 2019, all the companies except Dexia are established after 2010, which shows that for the medical service companies, the institutional threshold for listing is also gradually reducing However, from the perspective of the performance of medical service companies after listing, it is not only the institutional threshold that affects the exit of medical service IPO The performance of the four companies after listing is quite different The market value ranges from more than 200 million US dollars to more than 24 billion Hong Kong dollars, and the P / E ratio ranges from 58 times to 175 times In addition to the differences between the track and the field, we see that the core of the secondary market recognition is the growth of the enterprise From the perspective of the growth rate in the first three years before listing, whether in Hong Kong stock market or the US stock market, the four companies' revenue CAGR and the performance and P / E ratio after listing all show an amazing direct positive correlation Among them, as a representative of the successful IPO in the field of Internet medicine in recent years, new oxygen has successfully verified the significance and value of model innovation in solving the industry pain points With the rapid growth of China's medical beauty market scale from 150 billion to 450 billion in the next five years, new oxygen's main business faces the market expectation of medical beauty agency advertising from 40 billion to 90 billion As the largest vertical platform of the medical and aesthetic industry, new oxygen has brought significant changes to the marketing format of the medical and aesthetic industry in recent years In the future, we have observed that its business layout will expand from the marketing end to the upstream and downstream of the medical beauty industry, and its service objects will further expand from institutions to doctors We believe that the user-oriented model innovation concept will create more value in the industry in the future Meanwhile, jinxingen was successfully listed on the main board of the stock exchange of Hong Kong Limited, with a market value of more than 20 billion Hong Kong dollars, which rekindled market confidence Jinxin reproductive is the largest chain medical service leading brand of China's assisted reproductive track In recent years, it has become the international head enterprise of technology + platform coordinated development on assisted reproductive track through a series of extension integration This shows that the market will still give a satisfactory valuation for the rare targets with sustainable and high growth performance on the promising track We believe that IPO does not mean the end of the story, and the future scale will no longer be the most important threshold to impact the IPO of medical service companies After getting the tickets, how to keep the leading edge in their own track and how to build sustainable growth ability will become the primary topic that every company needs to think about for a long time Compared with Hong Kong stocks, the valuation of A-share in the medical service industry in 2019 has gone all the way up, but the phenomenon of polarization has become more and more obvious White horse enterprises with strong reproducibility have maintained a stable and high growth rate of sustained performance, bringing confidence to the market, and the premium has significantly increased, far higher than the index growth rate However, to a certain extent, the pilot of science and technology innovation board has diverted the overall withdrawal of the pharmaceutical sector, and the speed and possibility of listing of biomedical enterprises have increased In addition, the CSRC has always been strict in the examination of IPO of the medical service industry, and no medical service enterprise has successfully listed in a share this year On August 22, 2019, aer ophthalmology released the interim performance, and the net income continued to maintain a steady growth On the basis of the high base of the same period of last year, it realized an operating income of 4.749 billion yuan, an increase of 25.64% year-on-year; net profit of 731 million yuan, an increase of 33.6% year-on-year, and the market value of that day exceeded 100 billion yuan Ten years of foreshadowing is a qualitative change process based on the quantitative change of the number of stores and the quality of performance At the end of August, aer eye again introduced Hillhouse capital and Temasek, with a strategic financing of 1.856 billion yuan to "build an eye health ecosystem" Meinian health, who also led the way in its own track, also joined hands with ALI health in October, breaking the expectation of the existing pattern of private physical examination industry in the future The strong combination of big health and intelligent medical treatment has made the space and dimension of industrial upgrading more imaginable At the same time, as a real mature chain high-end medical scarce target, united family was acquired by Xinfeng Tianyu and "listed twice" in NYSE The market gradually realizes that the speed of polarization of medical service industry will further rely on the power of capital and innovative business model to become faster and faster The leading advantages of the segmented track, the excellent corporate governance means and the continuous ability of successful replication and expansion are all the necessary conditions for the future IPO Exit of the company in a share, and the forward-looking strategic vision for the industry wide integration and industrial upgrading is the "accelerator" of this process It can be seen from the M & A integration and strategic reconstruction events of the leading enterprises in 2019 that how to break the ceiling expectation of the market and draw a new industrial map through the strategic coordination and M & A integration of cross industries is an urgent problem for the head enterprises to think about.
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