A：Company Basic Information
Full Name: Topchoice Medical Co., Inc.
Stock Code: 600763.SH
Stock Abbreviation: Topchoice Medical
Region: Hangzhou City, Zhejiang Province
Industry: Medical Services
Establishment Date: August 30, 1995
Issue Price: 4.08 yuan
Founder: Lv Jianming
Company Website: www.tcmedical.com.cn
Registered Address: No. 57, Pinghai Road, Shangcheng District, Hangzhou City, Zhejiang Province
Total Share Capital: 447,289,117 shares (as of September 30, 2024)
Total Market Value: 30.6 billion yuan (as of September 30, 2024)
Business Scope: Oral medical services, product sales, construction projects, and other businesses.
Company Profile: Topchoice Medical Co., Inc., established in 1995, is a leading company listed on the main board focusing on oral medical services. The company's core business is to provide high-quality and differentiated medical services, with the main product being oral medical services. The company has built over 80 oral hospitals in Zhejiang, Jiangsu, Hubei, Shaanxi, Yunnan, Hunan, Hebei, and other places. Hangzhou Stomatological Hospital Group, one of the leading oral medical groups in China, has been established. The company has participated in the oral medical fund to invest in and build large oral hospitals in Wuhan, Xi'an, Shanghai, and other places, striving to create regional general hospitals and achieve a national layout of oral medical services.
B：Value Investment Analysis
Key Financial Indicators:
Operating Income: In the first half of 2024, the company achieved a revenue of 10.696 billion yuan, a year-on-year increase of 10.5%.
Net Profit: In the first half of 2024, the net profit attributable to the parent company was 1.499 billion yuan, a year-on-year increase of 38.1%.
R&D Investment: In 2023, the company's annual R&D expenditure exceeded 398.2 million yuan, with 4,157 R&D personnel.
Gross Margin: In the first half of 2024, the gross margin was 23.78%, a year-on-year increase of 4.7 percentage points.
Company Investment Value:
As a leading enterprise in the domestic oral medical service industry, Topchoice Medical has a significant brand advantage and market position. The company has rapidly expanded within Zhejiang Province through the "regional general hospital + branch" development model and is gradually radiating to the national scope. The company's oral medical service business is steadily growing, with a steady increase in the average price per customer, showing good investment value and growth potential.
Company Growth Potential:
The growth potential of Topchoice Medical mainly comes from the continuous growth of the oral medical service market and the company's leading position in this field. With the continuous expansion of domestic oral medical service demands, the company's market share is expected to further increase. In addition, the company's technological innovation and service quality improvement in the field of oral medicine are also expected to drive the continuous growth of the company's performance.
Industry Support Policies:
Topchoice Medical benefits from the national support for the medical service industry. With the aging population and consumption upgrade, the demand for oral medical services continues to grow. The state has introduced a series of policies, including tax incentives, financial support, R&D subsidies, etc., to promote the development of the medical service industry. These policies provide a favorable development environment and opportunities for companies like Topchoice Medical.
International Policy Risks:
The current international situation is complex and changeable. Trade frictions and technology blockades may have certain impacts on the company's supply chain and market expansion. However, Topchoice Medical actively responds to international policy risks by strengthening independent research and development and cooperation, striving to ensure the stable development of the company.
A.Top's Investment Review:
As a leading enterprise in the domestic oral medical service industry, Topchoice Medical demonstrates good investment value and growth potential with its technological advantages and brand influence in the field of oral medicine. With the continuous growth of the domestic oral medical service market, the company is expected to achieve steady growth in performance. At the same time, the company's innovation and R&D investment in the field of oral medicine are also expected to drive the continuous development of the company's business.