IMIC(000516)2024-06-07 14:45Summary of the Conference Call for International Medical Industry Overview - The conference call pertains to the healthcare industry, specifically focusing on the operations of International Medical and its affiliated hospitals, including the Xi'an Central Hospital and the High-tech Hospital. Key Points and Arguments - Inpatient Volume Growth: - High-tech Hospital reported inpatient volumes of 1,588 in March, 1,571 in April, and 1,485 in May. - Xi'an Central Hospital had inpatient volumes of 3,611 in March, 3,479 in April, and 3,210 in May, indicating a year-on-year growth trend despite a decline in May due to holiday impacts [1][2][3]. - Profitability Outlook: - The High-tech Hospital is consistently profitable, while the Central Hospital reached a revenue peak in November-December last year, which is critical for turning around losses. - The entire group is expected to see significant improvements in the second half of this year [1][2]. - Investment in Proton Therapy: - The major future investment will be in proton therapy, with the facility expected to begin trial operations by the end of 2025. - This will be the first proton treatment center in Central and Western China, with each proton device projected to handle an annual treatment volume of 10 million, charging an average fee of 300,000 per patient [1][2][3]. - Cost Structure: - Depreciation for buildings and large equipment has been accounted for, with personnel and basic equipment costs expected to rise as departments open. - The depreciation for the South Campus is approximately 3.6 million, while the North Campus is around 2 million. - Personnel costs have decreased to about 30% of total costs, while drug expenses account for 45-50% [1][2][3]. - Long-term Goals: - The capacity utilization rate was 43.8% last year, with a target of exceeding 50% to reach the breakeven point. - There is an additional 40%+ capacity available for growth over the next 3-5 years, with two plots of land available for expansion to accommodate up to 10,000 beds. - The target profit margin is set at no less than 15% [1][2][3]. Additional Important Information - The call highlighted the importance of the proton therapy investment as a strategic move to enhance the hospital's service offerings and financial performance in the long term [1][2]. - The focus on improving capacity utilization and managing costs effectively is crucial for achieving the outlined profitability targets [1][2][3].