The Zhitong Finance App learned that Bank of China International released a research report stating that it will maintain Hygeia Healthcare's (06078) “buy” rating and lower the revenue forecast for each year from 2023 to 25 by 1%, 2%, and 5%, respectively. Based on fluctuations in the Hong Kong stock market, the Group's target price was lowered to HK$47.
According to the report, the company's stock price has accumulated a correction of about 41% since December last year, mainly due to lower than expected profit guidance from management, declining valuations in the Chinese healthcare industry, and weak demand for optional consumer medicine. Management's guidelines for this year are conservative, and adjusted net profit is expected to increase 25%. Although weak consumer confidence affects demand for optional medical services, the bank expects the Group's business to withstand macroeconomic uncertainty, and the Group will remain more cautious about mergers and acquisitions.