Original link: https://ljf.com/2022/05/17/1090/
2021 is a roller coaster year for AIER Ophthalmology’s stock price. I also wrote the annual report notes for this stock for the third year. (The other one is Milkguard)
Doubtful: Is there room for further price increases for ophthalmic medical services? Is it in line with socialist core values? 【Possibility of policy risk】
Industry situation of the company during the reporting period
1. The demand for ophthalmic medical services continues to grow, and the market space continues to expand [strong demand]
In recent years, the demand for ophthalmic medical services in my country has shown a continuous growth trend, mainly due to: (1) With the aging of my country’s population structure, the number of patients with age-related eye diseases is increasing; (2) The eye health of young people is becoming more and more serious, especially myopia. The incidence rate of the disease is much higher than the world average; (3) The epidemic has changed people’s way of life, and the trend of online classes, online office, online entertainment, and online social networking has intensified the intensity of eye use, which has a greater impact on visual health, and has More demand for ophthalmic medical services is coming.
According to the “Statistical Bulletin of the People’s Republic of China on National Economic and Social Development in 2021”, as of the end of 2021, the number of people aged 60 and above in my country is 267 million, and the elderly population accounts for 18.9% of the total population; the number of people aged 65 and above has already 201 million people, accounting for 14.2% of the total population. In the future, the degree of aging will continue to deepen, and it is expected that the elderly population will reach more than 400 million in 2050. It can be predicted that age-related eye diseases such as cataract and diabetic retinopathy brought about by population aging will continue to increase.
According to the results of the 2020 National Children and Adolescent Myopia Survey released by the National Health and Health Commission, in 2020, the overall myopia rate among children and adolescents in my country is 52.7%; among which 14.3% for 6-year-old children, 35.6% for primary school students, 71.1% for junior high school students, and 71.1% for high school students. is 80.5%. Due to the impact of the epidemic, the overall myopia rate in 2020 increased by 2.5 percentage points compared with 2019 (50.2%). At the same time, in 2020, the myopia rate of 6-year-old children in various places will exceed 9%, with a maximum of 19.1%. Nearly 10% of myopic students are highly myopic, and the proportion increases with grades. Among 6-year-old children in kindergarten, 1.5% are highly myopic, and in high school it reaches 17.6%. The situation is grim.
2. Eye health is valued by policies, and the development prospect of the ophthalmic medical industry is bright
On April 28, 2021, 15 departments including the General Office of the Ministry of Education, the General Office of the Propaganda Department of the Central Committee of the Communist Party of China, and the General Office of the National Health and Health Commission jointly issued the “Work Plan for the Bright Action for the Prevention and Control of Myopia in Children and Adolescents (2021-2025)”, proposing Establish a child and adolescent vision health monitoring database, carry out dynamic monitoring of children and adolescents’ vision nationwide every year, and strive to achieve full coverage of myopia monitoring for children and adolescents in counties (districts). Guide all localities to strictly implement the national basic public health service requirements for eye care and vision examinations for children aged 0-6, to achieve early monitoring, early detection, early warning, and early intervention, and annual eye care and vision examinations for children 0-6 years old. rate of more than 90%. Encourage the purchase and use of certified optometry-related products and optometry services. Give full play to the professional advantages of the hospital and continuously improve the ability of eye health services. Strengthen the construction of myopia prevention and control expert think tanks, encourage various forces to actively carry out myopia prevention and control publicity and education activities, and carry out comprehensive prevention and control of myopia experts in children and adolescents.
By 2025, strive to achieve the following goals:
(1) The annual coverage rate of eye care and vision examination for children aged 0-6 has reached more than 90%, and the overall level of eye health of children and adolescents has been continuously improved
(2) The coverage rate of effective refractive error correction has been continuously improved, and the number of people with visual impairment caused by high myopia has gradually decreased.
(3) The national CSR has reached more than 3500, and the coverage rate of effective cataract surgery has been continuously improved.
3. Industry competition pattern and the company’s industry position
As a global ophthalmology chain medical institution, the company’s main competitors are ophthalmology or ophthalmology specialist hospitals in one or two general hospitals around the country. From the perspective of the strength of medical institutions, a few public hospitals, such as Beijing Tongren Hospital, Zhongshan Ophthalmology Center of Sun Yat-sen University in Guangzhou, Eye and ENT Hospital Affiliated to Fudan University in Shanghai, and Eye and Optometry Hospital Affiliated to Wenzhou Medical University, have excellent clinical and scientific research capabilities. Strong competitive strength.
Factors driving performance growth【Good operating conditions】
During the reporting period, the company achieved 10.1961 million outpatient visits, a year-on-year increase of 35.07%; the operation volume was 817,300, a year-on-year increase of 17.64%; the operating income was 15,000,809,400, a year-on-year increase of 25.93% and a year-on-year increase of 50.16%; The profit was 3,493,998,000 yuan, a year-on-year increase of 30.66%, and a year-on-year increase of 72.81%; the net profit was 2,469,903,200 yuan, a year-on-year increase of 31.58% and a year-on-year increase of 72.58%; the net profit attributable to the parent company was 2,323,344,000 yuan, A year-on-year increase of 34.78% and a year-on-year increase of 68.49%. The net profit attributable to the parent company after deducting non-recurring gains and losses was RMB 2,782,712,000, a year-on-year increase of 30.59% and a year-on-year increase of 94.73%.
Strengthen the construction of medical quality management and control system to effectively ensure medical quality and safety
During the reporting period, the incidence of endophthalmitis after cataract surgery in the company was 0.0121% (the incidence rate in the national top three hospitals was about 0.03%); the incidence rate of endophthalmitis after vitrectomy was 0.0166% (the incidence rate in domestic and foreign statistics was about 0.05%); The average qualified rate of hospital prescriptions was 97.6%; the average qualified rate of hospital orders was 98.6%; the use rate of antibiotics in hospitalized patients was 7.79%; the percentage of antibiotics used for prophylaxis in Class I incision surgery was 6.14%; the above indicators all met the evaluation standards of national tertiary ophthalmic hospitals.
Improve the mechanism and development platform to help the construction of talent team
The company implemented the 2021 restricted stock incentive plan, which has a total of 60 million restricted stocks, of which 48 million restricted stocks were granted to 4,909 incentive objects for the first time. Stage talent introduction assistance.
Core Competitiveness Analysis
1) Hierarchical chain advantage
As of December 31, 2021, the company has 174 domestic hospitals and 118 outpatient departments. With the continuous improvement of the medical network, the advantages of hierarchical chain and scale effect are further manifested.
2) Global resource advantage
The company owns leading overseas ophthalmic institutions such as Hong Kong Asia Medical, MING WANG Eye Center in the United States, Clínica Baviera.SA in Europe, and ISEC Healthcare Ltd in Southeast Asia. With the help of an international platform, Aier Global Vision Health Management Co., Ltd. builds a global ophthalmologist group platform.
Description of changes in main business income:
During the reporting period, the service revenue of cataract projects increased by 11.72% year-on-year. During the reporting period, due to the impact of the medical insurance settlement policy, the growth rate of the operation volume of cataract projects slowed down in stages. The escalating trend of high-quality refractive cataracts better meets the high-quality visual needs of patients with multi-level cataracts, ensuring the gradual growth of the project.
Company R&D personnel
R&D personnel have almost doubled from 291 in 2020 to 573.
Implementation of company equity incentive plans, employee stock ownership plans or other employee incentives
On June 2, 2021, the 33rd meeting of the fifth board of directors reviewed and approved the “Proposal on Granting Restricted Stocks to Incentive Objects for the First Time”. In view of the fact that Mr. Li Aiming, Mr. Liu Duoyuan and Mr. Yang Zhikuan, the senior executives of the incentive target companies identified in the “Company’s 2021 Restricted Stock Incentive Plan (Draft)”, have sold the company within 6 months before the first grant date of June 2, 2021 According to relevant regulations, the board of directors decided to suspend the grant of 453,900 restricted shares to Mr. Li Aiming, Mr. Liu Duoyuan, and Mr. Yang Zhikuan. This time, 47,546,100 restricted shares were actually granted to 4,906 incentive objects for the first time at a grant price of 27 yuan. /share.
On September 1, 2021, the 40th meeting of the fifth session of the company’s board of directors reviewed and approved the “Proposal on Adjusting Matters Related to the Suspended Grant of the 2021 Restricted Stock Incentive Plan” and “On Granting Restricted Stocks to the Incentive Objects whose Grants Are Suspended” ‘s proposal”. On May 14, 2021, the company implemented the 2020 annual equity distribution plan. The grant price of the suspended restricted stocks was adjusted from 27 yuan per share to 20.71 yuan per share , and the number of grants was adjusted from 453,900 shares to 588,516 shares.
Conclusion: The operating condition is excellent. But there are potential policy risks that need attention.
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