The global economy has been affected by the COVID-19 outbreak, it causes a huge loss in many industries. However, the overall performance in Germany, Denmark and P.R.C of EuroEyes ( 01846) remain stable.
The total revenue and the adjusted gross profit were approximately HKD 189 million and HKD 18.2 million respectively in the first half year. Although it decreased by 8 % and 38 % as compare to the corresponding period in 2019, the revenue from Germany and Denmark maintain a stable performance accounting for 40 % of the gross profit margin for the first half and a decrease of 3 % as compare to the corresponding period in 2019.
„Buy" rating maintained
Bank of China International issued a research report after the release of the company's interim results, maintained its „Buy" rating, and raised its target price by approximately 2.2 % to HKD 9.1. Bank of China International believes that the China business of EuroEyes has resumed operations since the end of May, and the ICL lens implantation surgery and the trifocal lens replacement surgery have also recovered rapidly from July to August. It is expected that the revenue from the Chinese business in 2020 is expected to be realized. Year-on-year growth in low single digits.
New EuroEyes clinic in Chongqing
The new clinic in Chongqing will open in Q4 of 2020. Furthermore the company will also expand its market share by opening more clinics or consultation centres in Chengdu, Shenzhen, Beijing and Shanghai.
Acquisition of two eye clinics in Germany
Moreover, the company will also achieve its first acquisition after IPO. It is expected to complete the acquisition of two eye clinics in Germany in Q4 of 2020, in order to strengthen and expanding its leading position in German market.
The company has a well geographic network coverage and anti-risk capabilities, while China market has a huge development potential. The company future business may expand and maintain a stable performance.