20230505-招银国际-医思健康-02138.HK-Rebound_of_cross-border_consumption_to_fuel_growth_in_FY24_6页

EC Healthcare expects a strong rebound in growth for FY24, driven by cross-border consumption recovery as Hong Kong's borders with Mainland China fully reopen. For FY23, sales volume is projected to increase by at least 24% YoY to HK$3.8bn, with medical services growing 39% YoY and aesthetic services showing varied performance. The company has enhanced its service capabilities through M&A, diversifying offerings to capture opportunities from cross-border tourists. However, margin pressures from revenue mix changes are noted. With border reopenings expected to take effect from FY24, the company is poised for significant gains, supported by rising tourist arrivals. The rating remains Buy, with a revised target price of HK$8.48, reflecting lower net margin projections. Financial forecasts include revenue growth of 33% YoY in FY23E and steady expansion in subsequent years, alongside margin declines due to changing market dynamics.