The corner of the high-end medical care of the rich is being interpreted by 603222.SH.

According to the financial report released by Jimin Medical on July 25, the operating income in the first half of 2023 was 444 million yuan, an increase of 1.64% over the same period last year, while the net profit of returning mother was 39 million yuan, down 39.50% from the same period last year.

The key reason for the sharp drop in profits points to the halving of syringe exports, one of Jimin Medical's core products.

"it is mainly due to the decline in the export of safety syringes (needles) of the company. The number of safety syringes (needles) exported by the company during the reporting period decreased by 73.33% compared with the same period last year, resulting in a decrease in the net profit of Jumin Bio from 52 million yuan in the same period last year to 9 million yuan in the reporting period. " Jimin Medical said.

Even so, part of the business of Jimin Medical, which is transforming from infusion and medical devices to medical services, still shows strong growth potential.

According to the semi-annual report, Boao International Hospital, which specializes in high-end medical services under Jimin Medical, earned 107 million yuan in the first half of 2023, an increase of 53.40 percent over the same period last year, and a net profit of 28 million yuan, turning a loss into a profit over the same period last year.

It is understood that by virtue of local policy advantages, the Boao International Hospital in Hainan can give priority to the introduction of drugs and devices that have not yet been approved by Chinese regulatory authorities.

However, whether we can get through the road of "policy barriers + high-end medical care", the key factor is still to get customers.

At present, one of the ways to promote Boao International Hospital is to cooperate with domestic well-known universities and third-class hospitals, so as to improve the influence of the brand.

However, it still takes time to prove whether this road can be opened up and copied effectively.

Dragged down by big clients?

In the first half of this year, the performance of Jimin Medical Service, which is based on the three major business sectors of infusion, medical services and equipment, is not good.

In the first half of 2023, the operating income of Jimin Medical was 444 million yuan, an increase of 1.64 percent over the same period last year. In the same period, the net profit of returning to the mother was 39 million yuan, down 39.50 percent from the same period last year, an increase of 1.18 percent over the first half of last year.

If the relevant data for the first quarter of this year are excluded, the operating income and return net profit of Jimin Medical in the second quarter are only 221 million yuan and 5 million yuan respectively, down 0.90% and 85.29% from the previous month.

Jimin Medical believes that the export volume of syringes has halved the overall profits.

"it is mainly due to the decline in the export of safety syringes (needles) of the company. The number of safety syringes (needles) exported by the company during the reporting period decreased by 73.33% compared with the same period last year, resulting in a decrease in the net profit of Jumin Bio from 52 million yuan in the same period last year to 9 million yuan in the reporting period. " Jimin Medical said.

Although the export volume has dropped sharply, the domestic sales of syringes have increased significantly.

In the first half of 2023, the sales of safety syringes and pre-filled catheter washers of Jimin Medical were 16 million and 17 million respectively, an increase of 54.16% and 332.88% respectively over the whole of 2022.

But this is not enough to hedge against the decline in export sales.

In the first half of 2023, the income of medical devices, including syringes, was only 128 million yuan, down more than 30% from the same period last year.

In the second half of the year, the export of Jimin medical safety syringes may still be difficult to recover.

It is understood that the main overseas customer of Jimin Medical's safety syringes is the US medical device company Retractable Technologies (hereinafter referred to as "RTI"). Previously, the company purchased a large number of syringes mainly used in COVID-19 vaccine, but with the change of the epidemic situation, RTI is facing the pressure of high inventory.

"from 2020 to the first quarter of 2022, the US government was an important customer of RTI due to the vaccination of American people against COVID-19. Government procurement resulted in a relatively high sales base in the same period last year, while orders decreased in the reporting period because some customers were still digesting their prior inventory." Jimin Medical said.

RTI expressed concern about syringe inventory pressure in its quarterly report of 2023.

Historically, sales have increased during the flu season. However, due to the significant increase in COVID-19 vaccine sales, the impact of flu season sales is small. Due to customers' unknown remaining syringe inventory and concerns about vaccine fatigue or hesitation, we are unable to predict demand for the 2023 flu season or COVID-19 vaccine enhancers. " RTI said.

To make matters worse, RTI has been laying off staff. The first-quarter results show that the proportion of layoffs in the first half of 2022 and the first quarter of 2023 is as high as 16% and 22% respectively.

Trade wind (ID:TradeWind01) asked Jimin Medical for confirmation of the follow-up measures, but had not received a reply as of the time of publication.

The way to get customers in high-end medical care.

In the medical services sector, Jimin Medical has shown strong growth potential after the epidemic.

Income in the first half of this year was 177 million yuan, an increase of more than 50% over the same period last year.

This is due to the growth in the performance of the two medical institutions responsible for the medical services sector-in the first half of 2023, the income of Boao International Hospital and Ezhou second Hospital was 107 million yuan and 71 million yuan respectively, an increase of 53.40% and 50.41% respectively over the same period last year.

Boao International Hospital, which turned losses into profits in the same period, achieved a net profit of 28 million yuan.

Boao International Hospital is not an ordinary medical institution.

The Boao International Hospital, which opened in 2018 and is located in Hainan, adopts five-star hotel management, which can provide high-end medical services such as anti-aging, immune regulation, accurate prevention and treatment of tumor, medical cosmetology and so on.

It is worth mentioning that taking advantage of the advantage of Hainan's advance area, Boao International Hospital can provide medical services that have not yet been approved by the relevant regulatory authorities in China.

"the hospital has made full use of the 'first try first' policy in the advance area to introduce a number of innovative drugs and medical devices that have been approved overseas but have not yet been registered in China." Jimin Medical said.

According to the official website, Boao International Hospital can use stem cell therapy for anti-aging, but the service is not yet available in most parts of China.

"using more than ten years of anti-aging international application experience in Japan, strictly following the Japanese SOD, President Oda's unique Japanese patent culture medium, the whole process has no heterogeneous serum, no antibiotics, high cell safety and high activity." Boao International Hospital pointed out.

As recently as June 2021, the State Administration of Market Supervision and Administration issued an article pointing out that the claims about the efficacy of stem cells in anti-aging and beauty are false and illegal advertisements.

Some institutions believe that Boao International Hospital, which has high-end medical attributes and policy barriers, is the target of A-share scarcity.

"Boao International Hospital is a scarce A-share asset, high policy barriers, Japan's top expert team, international new technology and equipment, and high profit margins." Zhu Guoguang, an analyst at Soochow Securities Pharmaceutical Industry, pointed out that "Boao International Hospital, located in the leading area of Boao Laocheng, has the privilege of early and pilot, new technology and high policy barriers, and enjoys policy dividends as the leading local hospitals."

It is true that the profit margin of Boao International Hospital is not low.

Based on a rough estimate of its income and profit, ID:TradeWind01 's profit margin in the first half of 2023 is as high as 26.17%.

300015.SZ, 301267.SZ and 600763.SH, which also have the attribute of consumer health care, have profit margins of 16.69%, 15.71% and 22.65% respectively in 2022.

But it remains to be seen how long scarce dividends can be enjoyed. At present, many companies also see the opportunity of Boao in Hainan. The Anti-Aging Center of Beautiful Pastoral Health (2373.HK), a subsidiary of Ayre Ophthalmology, is located in Boao, Hainan.

However, compared with Ayre Ophthalmology and other companies can spread the net in many places in the country to expand the scale of income, Boao International Hospital can only be limited by the special geographical location, so how to get customers is a difficult problem.

ID:TradeWind01 notes that although the Boao International Hospital's website emphasizes its status as a "global medical science pioneer", it has brought in 23 foreign experts. But it is still prefixed with the name of the Chinese university-Boao International Hospital of Shanghai University of traditional Chinese Medicine.

The reason behind this may point to getting customers. Naming in cooperation with domestic universities has become a way for some private medical institutions to establish a professional image. For example, the full name of Xiamen Eye Center, the core subsidiary of Huaxia Ophthalmology, is "Xiamen Eye Center affiliated to Xiamen University."

Moreover, in June this year, Boao International Hospital cooperated with the three Gorges Hospital affiliated to Chongqing University to build the Boao International Medical Department of the three Gorges Hospital affiliated to Chongqing University.

"it can enhance the comprehensive medical service capacity of Boao International Hospital, expand the coverage of medical services of Boao International Hospital, and benefit more people." Li Xianyu, the real controller of Jimin Medical Service, said.

Policy barriers + university / public third-class first-class hospital endorsement, whether the follow-up performance of Boao International Hospital can continue to volume, the market is continuing to pay attention.