Nomura has cut its revenue forecast for Hygeia Health by 3.3% and 5.5% for the next two years.
According to the Zhitongcaijing app, Nomura released a research report stating that it maintains a Buy rating on Hygeia Health (06078) with a target price of HKD 50.7, down from HKD 58.2.
The bank said that it has lowered its revenue forecast for Hygeia Health by 3.3% and 5.5% for the next two years, and its profit forecast has also been lowered by 0.6% and 14.1%. These reductions are lower than the general market's expectations, primarily due to the slower-than-expected operational efficiency and medical capabilities improvement for the newly built and acquired hospitals, as well as the operating expenses resulting from the merger and integration.
As for the mid-term performance, the bank predicts that Hygeia's revenue in the first half of the year will increase by 50.6% year-on-year, while the net profit is expected to increase by 25.5%. It is believed that due to the lower base period and the integration of new hospitals, the first half-year performance is expected to hit a new high.