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BofAS Cuts HAIGIA MEDICAL (06078.HK) TP to HKD16, Reiterates Buy
2026-04-02 10:17:04 BofAS issued a research report stating that HAIGIA MEDICAL (06078.HK)'s total revenue in 2025 decreased 9.8% YoY to RMB4 billion, while gross profit fell 23% YoY to RMB1 billion. Gross margin declined from 29.9% in 2024 to 25.5%. Net profit during the period was RMB162 million, down 73% YoY, mainly due to a RMB283 million goodwill impairment recorded by the Etern Group. Net profit adjusted under non-IFRS fell 24.4% YoY to RMB456 million, an improvement from the 34.5% decline in 1H25. Net operating cash flow increased 34.4% YoY to RMB950 million, while free cash flow amounted to RMB466 million, surging 407% YoY. The broker said that in light of the 2025 results, it lowered HAIGIA MEDICAL's revenue forecasts for 2026 to 2028 by 5%, 8% and 9%, respectively, and reduced gross margin forecasts by 2.6 ppts, 2.6 ppts and 2.9 ppts. In addition, it raised its effective tax rate forecast by 1.5 ppts starting from 2026. Overall, it cut its adjusted EPS forecasts for 2026 to 2028 by 19%, 21% and 23%, respectively. As hospital construction is expected to be largely completed in 2026 and no further major expansion plans are in place, the broker lowered its capital expenditure forecasts from 2027 onwards. BofAS lowered the TP for HAIGIA MEDICAL to HKD16 from HKD17.5 and reiterated its Buy rating, mainly due to the recovery in free cash flow and the long-term resilience of demand for oncology treatment. (ec/u)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |