image credit: Bamboo Works
Key Takeaways:
Stiff competition and price pressure in China have curbed revenue growth, prompting the company to target international eyecare markets
Income from its overseas eye clinics rose around 16% last year, more than double the overall rate of revenue growth
After rapid growth, Chinese private hospital chains have been falling out of favor on equity markets as they compete for customers by cutting prices.
But the country's leading private network of specialized eye hospitals is looking to reframe that narrative, with a move to raise its international profile and boost its overseas presence.
The board of Aier Eye Hospital Group Co. Ltd. (300015.SZ) voted on April 23 to pursue a listing on the main board of the Hong Kong Stock Exchange, subject to shareholder approval, a month after overseas media reported the Shenzhen-listed company was considering a secondary float.
The firm's shares rose 5.57% the day after the boardroom vote, pushing the group's market value back above 100 billion yuan ($14 billion).
In explaining its equity ambitions, the hospital chain said it was looking to broaden its access to international capital and support ongoing global expansion plans. But the company enjoys relatively strong cash flow and had previously played down the prospects for a Hong Kong listing.
At a shareholder meeting last May, Chairman Chen Bang said Aier Eye had no plans to launch H-shares, citing solid financing capacity and a lack of suitable overseas acquisition targets in the near term. The decision to press ahead with a Hong Kong ...
