Liaoning He Eye Hospital Group Co., Ltd. (He Eye Care) (301103)

Individual Stock Analysis Report　|　Industry: Ophthalmic Medical Services　|　Report Date: September 13, 2026　|　As of the September 11, 2026 close; some technical-indicator pages do not clearly specify refresh dates and may not be synchronized with the latest closing data.

This report was automatically compiled by AI based on publicly available information and is for reference only. It does not constitute investment advice.

1. Executive Summary

He Eye Care reported operating revenue of RMB 585 million in the first half of 2026, up 4.46% year on year. However, net profit attributable to shareholders of the listed company was RMB 41.5333 million, down 6.30% year on year, while net profit attributable to shareholders of the listed company excluding non-recurring items was RMB 34.7593 million, down 6.67%, indicating that revenue growth has not yet translated into corresponding profit growth. The company explained that net profit was affected by the amortization of restricted-share equity incentive expenses. Excluding this factor, net profit attributable to shareholders of the listed company was RMB 49.7122 million, up 12.15% year on year, although this adjusted measure is not directly presented in the statutory financial statements.

In 2025, the company recorded revenue of RMB 1.093 billion, essentially unchanged year on year, and net profit attributable to shareholders of the listed company of RMB 27.3365 million, turning profitable from a loss. However, net profit attributable to shareholders of the listed company excluding non-recurring items was only RMB 10.7685 million, so the quality of earnings still warrants monitoring. By business segment, optometry services generated revenue of RMB 348 million, accounting for 31.84%, while refractive-error surgical correction services generated RMB 234 million, accounting for 21.43%; both are relatively high-margin businesses. Cataract revenue declined 7.43% year on year and is subject to pressure from medical-insurance cost controls and centralized procurement of intraocular lenses.

The company has established a “1+N” network centered on ophthalmic hospitals. As of the end of 2025, it had 121 directly operated ophthalmic service institutions and 61 cumulative contracted franchised optometry stores. However, revenue remains highly concentrated in Liaoning Province: revenue from Liaoning accounted for 94.21% in 2025, while revenue from outside the province accounted for only 5.79%, indicating that nationwide expansion remains at an early stage. Management plans to advance refractive care, optometry, dry-eye treatment, brand building, digitalization and AI-assisted diagnosis and treatment, but has not yet issued new quantitative earnings guidance.

At the September 11, 2026 close, the company’s share price was RMB 15.78, below its MA5, MA10 and MA20. MACD was weak, while RSI6 was close to the traditional oversold range. Technically, the stock was weak but had potential for a technical rebound. The company’s market capitalization was approximately RMB 2.49 billion, and its dynamic P/E ratio was approximately 104x, making valuation sensitive to the profit base. There are currently no valid institutional consensus earnings forecasts or recent ratings, and the technical-indicator pages also show refresh-synchronization issues.

2. Company Overview

2.1 Basic Information

2.2 Core Businesses and Product Portfolio

• Refractive-error surgical correction services: Revenue of RMB 234 million in 2025, accounting for 21.43% of operating revenue, up 7.57% year on year, with a gross margin of 50.27%; services include laser myopia surgery, adult refractive correction and presbyopia correction.
• Cataract diagnosis and treatment services: Revenue of RMB 145 million in 2025, accounting for 13.27% of operating revenue, down 7.43% year on year, with a gross margin of 37.67%; the company is shifting the business from traditional volume-based treatment toward premium functional intraocular lenses and improved visual quality.
• Vitreoretinal and other ophthalmic disease diagnosis and treatment services: Vitreoretinal diagnosis and treatment revenue was approximately RMB 89.65 million in 2025, accounting for 8.20% of operating revenue, with a gross margin of 26.19%; revenue from other ophthalmic disease diagnosis and treatment services was approximately RMB 34.43 million, accounting for 3.15%, with a gross margin of 48.23%.
• Non-surgical treatment: Revenue of RMB 230 million in 2025, accounting for 21.09% of operating revenue, with a gross margin of 34.34%; services mainly include ophthalmic drug treatment, examinations, care and related eye-health services.
• Optometry services: Revenue of RMB 348 million in 2025, accounting for 31.84% of operating revenue, making it the largest individual business by revenue contribution, with a gross margin of 42.10%; services include medical refraction and eyeglass fitting, myopia prevention and control for children and adolescents, visual-function training, optometry clinics, optometry centers, and sales of lenses and frames.
• In 2025, medical-industry revenue was RMB 1.082 billion, accounting for 98.98% of operating revenue; other business revenue was RMB 11.0976 million, accounting for 1.02%.

2.3 Position in the Upstream and Downstream Value Chain and Cost-Profit Structure

He Eye Care operates in the mid-to-downstream segment of the ophthalmic medical-services value chain. It connects upstream pharmaceutical, intraocular-lens, medical-equipment and optical-material suppliers with patients, medical-insurance payers, commercial insurers and optometry consumers through hospitals, clinics, optometry centers and physician teams, providing diagnosis and treatment, surgery, refraction and eyeglass fitting, and eye-health management services. The company currently exhibits the characteristics of “deep cultivation in Liaoning plus the initial stage of nationwide network expansion.”

• The company’s principal procurement categories include pharmaceuticals, medical devices and surgical equipment, high-value medical consumables such as intraocular lenses, optical materials such as frames and lenses, as well as property, equipment, information systems and professional services.
• The company adopts a centralized group procurement model. Supplier lists are determined through bidding, competitive negotiations and quotation processes, after which subsidiaries purchase according to their needs. This helps improve economies of scale in procurement and supplier-management capabilities.
• In 2025, material costs were RMB 329 million, accounting for 51.06% of medical-industry operating costs; labor costs were RMB 198 million, accounting for 30.65%; depreciation, rent and amortization were RMB 101 million, accounting for 15.63%; other costs accounted for 2.66%. The cost structure is primarily composed of medical materials, labor and fixed operating costs of medical institutions.
• The company’s bargaining power with upstream suppliers is generally moderate. Centralized and scaled procurement can reduce purchasing costs, but intraocular lenses, surgical equipment, pharmaceuticals and premium optical products involve brand, technology and registration-access barriers, and suppliers are not fully interchangeable.
• Centralized procurement of intraocular lenses, medical-insurance cost controls and medical-consumable price adjustments will pressure per-patient revenue and gross margins in businesses such as cataract treatment. The company is not generally a price setter for upstream resources or core consumables.
• Downstream customers mainly include ophthalmic patients, children and adolescents requiring myopia prevention and control, refractive-surgery and optometry consumers, elderly cataract patients, medical-insurance payers, commercial-insurance payers, franchised optometry stores and grassroots partner institutions.
• In 2025, direct sales/service revenue accounted for 99.62% of operating revenue, while distribution sales accounted for only 0.38%. The company primarily faces patients directly through its own hospitals, clinics and directly operated service institutions rather than relying on major channel customers.
• Sales to the five largest customers totaled RMB 1.1499 million in 2025, accounting for 0.11% of annual sales. This information comes from the company’s 2025 annual report, but customer names were anonymized. As customers are mainly highly dispersed individual patients, this metric does not fully reflect the actual concentration of a single region, medical-insurance institution or major partner; it only indicates the absence of reliance on a single major customer in the traditional manufacturing-industry sense.
• Refractive surgery and optometry services have consumer-medical characteristics. Pricing is influenced by patients’ willingness to pay, brand, physician expertise, customer-acquisition costs and service experience, giving the company some pricing power and room for brand premiums.
• Cataract and other medical-insurance or partially medical-insurance-covered businesses are affected by medical-insurance payments, DRG/DIP reforms and centralized procurement of intraocular lenses. Hospitals have relatively limited bargaining power with payers and high-value consumables suppliers.
• The company faces competition from public hospitals, private chain ophthalmology institutions and local specialist hospitals for physicians, patients and medical-insurance resources. Optometry operations also face competition in professional refraction services, lens brands, service experience, myopia-prevention outcomes and pricing.
• As of December 31, 2025, accounts receivable were approximately RMB 36.87 million, equivalent to 3.37% of 2025 operating revenue; prepayments were approximately RMB 15.84 million, equivalent to approximately 1.45% of operating revenue; accounts payable were approximately RMB 59.04 million, equivalent to approximately 5.40% of operating revenue. Accounts payable exceeded accounts receivable, and the company’s revenue mainly comes from immediate patient payments, medical-insurance settlements and optometry consumption. There is no obvious dependence on large-scale credit sales or severe accounts-receivable funding. However, medical-insurance settlement cycles, commercial-insurance settlements, medical disputes and the cultivation period for new institutions may still create cash-flow pressure. The accounts-receivable ratio alone cannot establish that the company has strong bargaining power over all downstream parties.
• Purchases from the five largest suppliers totaled RMB 133 million in 2025, accounting for 41.88% of total annual purchases; the largest supplier accounted for 20.25%. This information comes from the company’s 2025 annual report, but supplier names and specific procurement categories were not disclosed, making it impossible to determine whether purchases were concentrated in a particular intraocular-lens, equipment or lens brand; the latest annual report should be consulted for details. On the customer side, sales to the five largest customers totaled RMB 1.1499 million, accounting for 0.11% of total sales. Customer names were anonymized, and the metric is affected by the highly dispersed individual-patient business model; it therefore cannot fully represent concentration among regions, medical-insurance institutions or partners.

The company operates in the mid-to-downstream service and brand-operations segment of the ophthalmic medical-services value chain and is not an upstream manufacturer of pharmaceuticals, equipment or intraocular lenses. Current profit improvement depends primarily on growth in high-margin businesses such as refractive care and optometry, successful cultivation of new institutions outside Liaoning, expansion of the franchise network, cost reductions through centralized procurement, and higher utilization of hospitals and stores, rather than on upstream-resource monopolies or manufacturing-capacity expansion.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

As of August 28, 2026, the latest formal financial report disclosed by the company was the 2026 Semiannual Report, covering January–June 2026. Net profit attributable to shareholders of the listed company excluding non-recurring items was RMB 34.7593 million in the first half of 2026, down 6.67% year on year; basic EPS was RMB 0.2674, down 4.67% year on year.

The company maintained modest revenue growth in the first half of 2026, but both net profit attributable to shareholders of the listed company and net profit excluding non-recurring items declined year on year, indicating that revenue growth has not yet translated into profit growth. In 2025, revenue was essentially stagnant, but net profit attributable to shareholders of the listed company turned profitable from a loss. Net profit excluding non-recurring items was only RMB 10.7685 million, below net profit of RMB 27.3365 million, so earnings quality still warrants monitoring. Net profit attributable to shareholders of the listed company in the first half of 2026 already exceeded the full-year 2025 figure, but declined year on year; attention should be paid to whether profit can be sustained in the second half. As of June 30, 2026, net assets attributable to shareholders of the listed company were RMB 1.91024 billion, up 1.40% from the end of 2025; total assets were RMB 2.20107 billion, up 0.88% from the end of 2025.

3.2 Earnings Forecasts

The earnings-forecast page of 10jqka shows that no institution has made an earnings forecast for He Eye Care for the current year. Forecast net profit and forecast EPS for 2026 and 2027 are blank; the number of buy, overweight, neutral, underweight and sell ratings in the past six months was zero in each case. No multi-institution consensus forecasts for 2026–2028 revenue, net profit attributable to shareholders of the listed company or EPS could be found or cross-verified. A 2024 third-quarter results commentary by Guotai Junan previously forecast net profit attributable to shareholders of the listed company of approximately RMB 84 million, RMB 111 million and RMB 145 million for 2024–2026 and assigned an “Overweight” rating. However, the forecast is outdated, and actual 2025 net profit attributable to shareholders of the listed company was only RMB 27.3365 million; it should not be used as a current earnings forecast.

3.3 Valuation and Institutional Ratings

At the September 11, 2026 close, the company’s share price was RMB 15.78, with a daily change of -2.41% and trading volume of approximately 1.39 million shares. Based on June 30, 2026 book value per share of RMB 12.09, the price-to-book ratio was approximately 1.31x. Based on total shares of approximately 158 million, total market capitalization was approximately RMB 2.49 billion. 10jqka showed a dynamic P/E ratio of approximately 30.15x and EPS of approximately RMB 0.27. Xueqiu recently showed a static P/E of approximately 95.61x and P/B of approximately 1.37x. As of August 13, 2026, Lixinger showed that at a share price of RMB 17.56, PE-TTM was approximately 100.93x, P/B approximately 1.46x and market capitalization approximately RMB 2.775 billion. The large differences in P/E ratios across platforms mainly result from differences in the calculation methods and profit bases used for dynamic annualized P/E, static P/E and TTM P/E. Based on full-year 2025 net profit attributable to shareholders of the listed company of RMB 27.3365 million, the current market capitalization implies a static P/E of approximately 91x. Annualizing first-half 2026 net profit of RMB 41.5333 million gives estimated full-year net profit of approximately RMB 83.07 million and an implied P/E of approximately 30x, but this estimate does not account for second-half seasonality, non-recurring items or profit volatility and cannot replace a formal earnings forecast. Overall, the company’s P/B of approximately 1.3x is relatively moderate, but its P/E is highly affected by the profit base. There is currently no valid institutional consensus earnings forecast, rating in the past six months or target price; valuation should therefore rely more on actual financial statements, the company’s internal targets and comparisons with industry peers.

4. Recent News and Announcements

4.1 2026 Semiannual Results Briefing: Revenue Growth but Year-on-Year Decline in Reported Net Profit

On September 4, 2026, the company disclosed the Announcement on Holding an Online Results Briefing for the 2026 Semiannual Results, and held the online briefing through Value Online from 15:00 to 17:00 on September 11, 2026. The company stated that operating revenue in the first half of 2026 was RMB 585.0929 million, up 4.46% year on year, while net profit attributable to shareholders of the listed company was RMB 41.5333 million, down 6.30% year on year. The company said the decline in net profit was mainly affected by the amortization of restricted-share equity incentive expenses. Excluding this factor, net profit attributable to shareholders of the listed company was RMB 49.7122 million, up 12.15% year on year. The adjusted figure was an explanation provided during investor-relations activities and is not a measure directly presented in the statutory financial statements.

4.2 First-Half 2026 Operating Data and Earnings-Preannouncement Status

The 2026 Semiannual Report disclosed that net profit attributable to shareholders of the listed company excluding non-recurring items was RMB 34.7593 million in the first half, down 6.67% year on year, while net cash flow from operating activities was RMB 98.7059 million, down 13.05% year on year. As of September 13, 2026, no new earnings preannouncement, results flash report or clear profit forecast for the first three quarters of 2026 or full-year 2026 had been identified.

4.3 Company Announces Second-Half Operating Priorities

At the semiannual results briefing, the company stated that it would focus on five areas in the second half: business expansion, brand building, digital empowerment, strengthening fundamentals and technological innovation. It will continue to advance refractive care, optometry and dry-eye treatment while strengthening digitalization and the application of AI-assisted diagnosis and treatment. These statements constitute management’s operating outlook rather than a performance commitment, and the company has not issued new quantitative earnings guidance.

4.4 Advanced Manufacturing Fund Completes Planned Share Reduction

On January 19, 2026, the company disclosed that Advanced Manufacturing Industry Investment Fund (Limited Partnership), a shareholder holding more than 5%, planned to reduce its holdings by no more than 3.106074 million shares from February 7 to May 6, 2026, equivalent to approximately 1.97% of the company’s total shares, to meet its own funding needs. On May 7, 2026, the company disclosed that the reduction plan had been completed. The Advanced Manufacturing Fund reduced its holdings by a cumulative 733,300 shares through centralized bidding, equivalent to approximately 0.46% of the company’s current total shares and approximately 0.47% of total shares excluding those held in the repurchase-specific securities account. The reduction was below the original upper limit, and the plan ended upon expiry.

4.5 Company Responds to Shareholder Reduction and Repurchase/Increase Arrangements

At the semiannual results briefing on September 11, 2026, the company stated that the Advanced Manufacturing Fund’s reduction was an independent decision made by the shareholder based on its own funding needs. The fund is not a controlling shareholder, actual controller or concert party thereof. The reduction would not result in a change of control or affect the company’s governance structure or continuing operations. The company stated that it would prudently study the feasibility of market-value management tools such as share repurchases and increases in holdings. However, as of September 13, 2026, no new formal announcement regarding a repurchase or increase-in-holdings plan had been identified.

4.6 Company Has Existing Repurchased Shares but No New Repurchase Plan

As of June 30, 2026, the company’s repurchase-specific securities account held 2.722719 million shares, representing approximately 1.72% of total shares. These shares resulted from a previously completed repurchase arrangement and did not represent a new repurchase launched in September 2026. The company has not disclosed a specific repurchase amount, price ceiling, implementation period or cancellation arrangement.

4.7 Industry Fund Increases in Size, Primarily for Industrial Investment and M&A Reserves

On July 17, 2026, the company disclosed the Announcement on the Progress of Joint Investment in a Fund with a Professional Investment Institution. The company had previously proposed contributing RMB 80 million of its own funds to participate in establishing Shanghai Puqing Bencao Venture Capital Partnership (Limited Partnership), with investment focused mainly on biotechnology, healthcare and other fields. Following the addition of a limited partner and capital increases by certain partners, the fund’s subscribed capital increased from RMB 285 million to RMB 502.5 million, while the company’s subscribed contribution remained unchanged. The company stated that the fund would also be used to reserve potential future M&A projects. As of September 13, 2026, no announcement had been identified regarding the company’s signing or completion of a major equity acquisition, asset acquisition or M&A transaction. Fundraising, implementation of investment projects, investment recovery periods and returns remain uncertain.

4.8 Proposed Cash Management, with Relevant Resolution Pending Review

On August 28, 2026, the company disclosed a proposal to conduct cash management using no more than RMB 660 million of idle raised funds, including excess raised funds, and no more than RMB 750 million of idle self-owned funds. The term would not exceed 12 months from approval by the shareholders’ meeting, and the limits could be reused on a rolling basis. The company stated that the arrangement was intended to improve capital-use efficiency without affecting the construction of raised-fund projects or normal operations. The resolution remains subject to review by the shareholders’ meeting, and specific implementation will depend on subsequent approval and actual product purchases.

4.9 Board of Directors and Management Complete Transition

On August 6, 2026, the company completed the transition to its fourth board of directors. He Wei continued to serve as chairman, while He Xiangdong, He Xingru and others served as non-independent directors. He Xingru was appointed general manager, and the company also completed the appointment of independent directors and senior management personnel. The new board has a three-year term. Based on disclosed information, the core management team has remained broadly stable, with no indication so far of a change in control or sudden major adjustment to operating strategy.

4.10 No Newly Identified Regulatory Penalties or Major Inquiries

As of September 13, 2026, no new regulatory penalty, filing investigation, major inquiry letter or major medical-compliance penalty involving He Eye Care in August or September 2026 had been identified. The company’s semiannual report continues to list medical-service regulation, medical-insurance policies, medical charges, pharmaceutical and consumables management, and medical personnel qualifications as industry-policy risks, but this disclosure does not indicate that the company has already been penalized.

4.11 Key Items to Monitor

Key items to monitor include whether third-quarter 2026 results maintain revenue growth, whether the impact of equity-incentive expenses on profit declines, whether the Advanced Manufacturing Fund announces another reduction arrangement, whether the company releases a formal repurchase or increase-in-holdings plan, whether Bencao Fund completes specific investments, whether the cash-management limits are approved by the shareholders’ meeting and implemented, and changes in medical services, medical-insurance payments and regulatory policies for private specialist hospitals.

5. Share Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, He Eye Care closed at RMB 15.78, below MA5, MA10 and MA20, indicating bearish short-term moving averages. MACD remained weak, RSI6 was near the traditional oversold range, and the closing price fell below the lower Bollinger Band, reflecting substantial short-term price pressure while leaving room for a technical rebound. The stock was relatively low within its 52-week range, with the 52-week low of RMB 14.50 serving as an important downside reference. Major-fund statistics showed cumulative net inflow of approximately RMB 1.21 million over the past 10 trading days, but recent net inflows accompanied by a falling share price have not yet produced a clear trend signal. Particular attention should be paid to the lack of synchronization in the refresh dates of the technical-indicator pages; the relevant indicators should be verified against the latest market-data terminal.

5.3 Short-Term Outlook (Next Week, Scenario Analysis for Reference Only)

⚠️ Risk warning: The following content is a subjective scenario analysis based on the September 11, 2026 closing data and historical prices and technical indicators. It does not constitute investment advice or a definitive forecast of future share prices.

1. Key Technical Levels

2. Scenarios for the Next Week (Subjective Weights, Not Statistical Probabilities)

• Weak-range trading (relatively high subjective weight, approximately 60%; this is a heuristic judgment based on the current technical setup and fund flows, not a statistical probability): Price range of approximately RMB 15.60–16.40. Trigger conditions include trading value remaining at approximately RMB 20–35 million, the price finding support above RMB 15.60 but failing to decisively break through RMB 16.20–16.40, MACD remaining weak and no clear new catalyst emerging. The corresponding observation would be repeated oscillation around the lower Bollinger Band, MA5 and MA10, with technical rebounds alternating with pullbacks
• Weak downward movement (medium weight; this is a heuristic judgment based on the current technical setup and fund flows, not a statistical probability): Price range of approximately RMB 14.50–15.60. Trigger conditions include a high-volume break below RMB 15.60, daily trading value materially exceeding recent normal levels, and continued weakness in the pharmaceutical, biotechnology or medical-services sectors. If support fails, focus should be placed on support near RMB 15.00 and the prior low of RMB 14.50
• Stronger rebound (low weight; this is a heuristic judgment based on the current technical setup and fund flows, not a statistical probability): Price range of approximately RMB 16.40–17.25. Trigger conditions include the share price reclaiming RMB 16.00, trading value expanding consecutively to above approximately RMB 40 million, and a further break through RMB 16.40–16.60. At the same time, the MACD histogram would need to narrow, RSI6 return above 30, or a positive industry- or company-level catalyst emerge. If RMB 16.60 is broken, the middle Bollinger Band and the RMB 17.00–17.25 area could be monitored, although insufficient volume could still result in a rise followed by a pullback

3. Fund-Flow and Liquidity Background

As of September 11, 2026, estimated single-day turnover was approximately 1.14% and trading value was approximately RMB 22 million. Trading value was RMB 27.0744 million on September 10, with a turnover rate of 1.37%; daily trading value from September 8 to September 11 was approximately RMB 22–32 million, with trading volume of approximately 1.39–1.93 million shares. Major funds recorded cumulative net inflow of approximately RMB 1.21 million over the past 10 days, but the recent combination of net inflows and a falling share price indicates that fund absorption has not yet translated into a clear price trend. As of June 30, 2026, the top 10 floating shareholders collectively held approximately 49.37%, while institutions collectively held approximately 30.14%, including approximately 3.59% held by funds. As of March 31, 2026, the publicly disclosed public fund among the top 10 floating shareholders was Rongtong Healthcare Industry Flexible Allocation Mixed Securities Investment Fund, holding approximately 1.85%. Natural persons, the controlling shareholder and related parties, and industrial-investment shareholders accounted for relatively high proportions among the top shareholders. Higher concentration does not equate to recent continuous buying by public funds or mainstream institutions. The above shareholder data are as of June 30, 2026 and March 31, 2026, respectively, approximately two to five months before September 11, 2026. New purchases or sales may have occurred during the intervening period, so the data cannot be treated as a real-time shareholder structure. Given floating market capitalization of approximately RMB 1.93 billion and daily trading value of approximately RMB 20–30 million, short-term trading activity is average. Sudden large-order transactions could produce relatively significant price slippage in the order book.

If daily trading value exceeds approximately RMB 40 million for two consecutive trading days and the closing price simultaneously stands above RMB 16.00–16.20, this could serve as an observation signal for improved fund participation and price recovery. If volume increases but the closing price remains below RMB 15.60, this should be interpreted more as the release of selling pressure than as a purely positive signal.

4. Key Items to Monitor (Observational Framework Only, Not Trading Instructions)

• Monitor whether the RMB 15.60–15.95 support area can provide effective support, and whether the price seeks support in the RMB 14.50–15.00 range after breaking below RMB 15.60; this is an observational framework, not a trading instruction.
• Monitor whether the RMB 16.00–16.40 resistance area can be broken with volume support, and whether the RMB 16.40–16.60 area can produce further recovery; this is an observational framework, not a trading instruction.
• Monitor whether trading value increases from the recent RMB 20–30 million to above approximately RMB 40 million for two consecutive trading days while the price simultaneously stands above RMB 16.00–16.20; this is an observational framework, not a trading instruction.
• Monitor whether major-fund net inflows can coincide with share-price gains rather than continuing to occur alongside a falling closing price; this is an observational framework, not a trading instruction.

The above scenario analysis is based on September 11, 2026 closing data and calculations using historical prices and technical indicators. Short-term share prices will also be affected by news, fund flows, the broader market environment and other factors. Technical indicators themselves have lagging effects and limitations. This analysis does not guarantee actual future performance or constitute a buy or sell recommendation. Investors should make independent judgments based on the latest market information and bear investment risks themselves.

6. Industry Structure and Competitor Analysis

6.1 Industry Overview

The company operates in the ophthalmic medical-services industry. According to the prospectus classification, the industry falls under the China Securities Regulatory Commission category “Q83 Health,” and under the national economic industry classification “Q8415 Specialized Hospitals.” The industry is characterized by the important position of public hospitals, increasing chain-based development and concentration among private ophthalmology providers, and a market that is nationally fragmented but regionally concentrated in competition. Consumer ophthalmology and optometry have strong consumer-medical characteristics and generally generate relatively high gross margins, but they also depend more heavily on brand, physician reputation, patients’ ability to pay and customer-acquisition costs.

6.2 Competitive Landscape

• Large tertiary hospitals and well-known public ophthalmology centers have advantages in complex ophthalmic diseases, specialist resources, research capabilities and patient trust. Private institutions mainly compete through chain expansion, service efficiency, consumer medical care, optometry services and regional penetration.
• The number and scale of private ophthalmology institutions continue to grow. However, amid medical-insurance reforms, centralized procurement of intraocular lenses, tighter regulation and intensifying customer-acquisition competition, the industry is consolidating toward scale, standardization, refined management and technology. Leading institutions are expanding their networks through advantages in brand, talent, capital and procurement scale.
• The market is characterized by “national fragmentation and regional concentration.” He Eye Care’s Liaoning revenue accounted for 94.21% of total revenue in 2025, indicating a relatively strong regional competitive advantage but an as-yet unproven nationwide expansion capability that will need to be validated through new hospitals, optometry stores, the franchise network and brand building.
• Refractive surgery, medical optometry, myopia prevention and control, dry-eye treatment and visual-function training have strong consumer-medical characteristics. Compared with traditional medical-insurance-covered ophthalmic businesses, these services depend more heavily on brand marketing, physician reputation, patients’ ability to pay and customer-acquisition costs.
• The focus of industry competition is shifting from expansion in hospital numbers toward comprehensive capabilities, including high-level physician teams, refractive technologies and equipment, standardized optometry services, long-term customer management, AI-assisted screening, telemedicine, hospital operating efficiency, supply-chain management and brand-based customer acquisition.
• Data in the 2025 annual report on industry size, the private-sector market share and future market size mainly cite China Insights Consultancy, National Health Commission statistics and other sources. The company did not fully disclose the underlying data or calculation process. These figures represent industry-research methodologies cited by the company and should not be regarded as independently audited data.

6.3 Major Competitors

Compared with Aier Eye Hospital, Huaxia Eye Hospital and Bright Eye Hospital, He Eye Care is smaller in scale, with revenue highly concentrated in Liaoning and nationwide expansion still at an early stage. Its differentiated advantages mainly come from its regional brand in Liaoning, accumulated presence in the Northeast, its “three-tier eye-health service model,” and a network combining hospitals, optometry centers, grassroots institutions and franchised stores. The company’s competitive focus against leading chains lies in physician and specialist resources, brand-based customer acquisition, growth in refractive and optometry businesses, franchise-network quality, procurement cost reduction and the efficiency of cultivating new institutions. As the companies differ in scale, geography and business mix, they should not be compared solely on a one-to-one basis using revenue or hospital count.

7. Risk Factors

• Risk that earnings growth falls short of expectations: Revenue increased 4.46% year on year in the first half of 2026, but net profit attributable to shareholders of the listed company declined 6.30% and net profit excluding non-recurring items declined 6.67%. If revenue growth continues to fail to translate into profit growth, the earnings recovery following the 2025 turnaround may lack sustainability.
• Risk of earnings-quality volatility: Net profit attributable to shareholders of the listed company was RMB 27.3365 million in 2025, while net profit excluding non-recurring items was only RMB 10.7685 million. The substantial difference between the two measures means subsequent earnings may be affected by non-recurring items, equity-incentive expenses and other factors.
• Regional concentration risk: Liaoning revenue accounted for 94.21% of total revenue in 2025, while revenue outside Liaoning accounted for only 5.79%. The company remains highly dependent on its Liaoning brand, patient resources and regional competitive environment, while the expansion and replication of institutions and networks outside the province have not been fully validated.
• New-institution cultivation risk: The company has 121 directly operated ophthalmic service institutions and continues to expand franchised optometry stores and its out-of-province network. If new hospitals, clinics or franchised stores have long cultivation periods or insufficient utilization, labor, rent, depreciation and operating expenses could increase and drag on profit.
• Medical-insurance cost-control and centralized-procurement risk: Cataract diagnosis and treatment revenue declined 7.43% year on year in 2025, and the business was affected by medical-insurance payments, DRG/DIP reforms and centralized procurement of intraocular lenses. Further pressure on per-patient revenue or prices of high-value consumables could affect cataract revenue and gross margins.
• Business competition and customer-acquisition risk: The company faces competition from Aier Eye Hospital, Huaxia Eye Hospital, Bright Eye Hospital, public hospitals and local specialist institutions in refractive care and optometry. If physician resources, brand-based customer acquisition, service experience or patients’ willingness to pay are inferior to competitors, growth in high-margin businesses could slow.
• Supplier concentration risk: Purchases from the five largest suppliers accounted for 41.88% of total annual purchases in 2025, while the largest supplier accounted for 20.25%. Since specific procurement categories were not disclosed, if the concentration involves key categories such as intraocular lenses, equipment, pharmaceuticals or lenses, changes in suppliers or procurement terms could affect costs and business continuity.
• Uncertainty in capital utilization and investment projects: The company plans to use idle raised funds and self-owned funds for cash management and has subscribed RMB 80 million to a healthcare-focused fund. The relevant resolution, implementation of fund projects, investment recovery period and returns are all uncertain. No completed major M&A transaction has yet been identified that could contribute to earnings.
• Valuation and share-price volatility risk: As of September 11, 2026, the company’s dynamic P/E was approximately 104x, making valuation sensitive to the relatively low profit base. The share price was also below several short-term moving averages and MACD was weak. If earnings recovery falls short of expectations or market sentiment deteriorates, the share price could remain under pressure.
• Technical-data timeliness risk: The refresh dates of certain MA, MACD, RSI and Bollinger Band indicator pages were unclear, and prices, valuation figures and 52-week ranges differed across market-data platforms. Technical signals and valuation data may therefore not be synchronized with the latest market conditions.

8. Conclusion and Outlook

The company’s growth drivers mainly consist of expansion in consumer-medical businesses such as refractive care and optometry, its regional brand and medical-network foundation in Liaoning, construction of directly operated and franchised optometry networks, and improvements in procurement and operating efficiency. If new institutions outside Liaoning can improve utilization, franchised stores can be effectively replicated, and the contribution of high-margin businesses continues to rise, the company still has room to improve revenue and profitability. Fund investment and cash management provide new arrangements for capital utilization and potential M&A reserves, but no major completed M&A transaction or clear earnings contribution has yet materialized.

The company is currently in a phase of modest revenue growth, earnings pressure and earnings quality that remains to be validated. Net cash flow from operating activities declined 13.05% year on year in the first half of 2026, while net profit attributable to shareholders of the listed company also declined, indicating that expenses, operating efficiency, business mix and the cultivation of new institutions still require monitoring. The key issues going forward are whether revenue growth can continue to translate into growth in profit excluding non-recurring items, whether the impact of equity-incentive expenses declines, whether institutions outside Liaoning can achieve economies of scale, and whether cataract and other medical-insurance-related businesses can withstand payment and consumables-price pressure.

The company does not have a valid institutional consensus earnings forecast, and valuation differs substantially depending on the profit measure used. Technically, the share price is at a relatively low level within its 52-week range, but weak moving averages and insufficient trading support indicate that the market has limited confirmation of the earnings recovery. Future assessment should dynamically incorporate formal financial reports, operating cash flow, segment performance, the efficiency of institutional expansion and changes in the policy environment to evaluate the extent to which growth is being delivered and whether valuation is reasonable.

Data Sources

• Shenzhen Stock Exchange ChiNext Listed Companies
• https://static.cninfo.com.cn/finalpage/2026-04-25/1225192459.PDF
• https://static.cninfo.com.cn/finalpage/2024-04-26/1219826135.PDF
• He Eye Care (301103)_Corporate Announcements_He Eye Care: 2024 Annual Report_Sina Finance_Sina.com
• Liaoning He Eye Hospital Group Co., Ltd. Prospectus (Application Draft)
• Huaxia Eye Hospital Group Co., Ltd. Full 2025 Annual Report
• Bright Eye Hospital Group Co., Ltd. Full 2025 Annual Report
• He Eye Care (301103)_Corporate Announcements_He Eye Care: 2026 Semiannual Report Summary_Sina Finance_Sina.com
• He Eye Care (301103)_Corporate Announcements_He Eye Care: 2025 Annual Report_Sina Finance_Sina.com
• Liaoning He Eye Hospital Group Co., Ltd. First Quarter 2025 Report
• He Eye Care (301103) Earnings Forecast_F10_10jqka Financial Services
• [[Guotai Junan Securities]: 2024 Third-Quarter Results Commentary: Short-Term Growth Under Pressure, Dandelion Branches Developing Smoothly - Report Discovery](https://www.fxbaogao.com/detail/4574163?utm_source=openai)
• [B17

Information Disclosure

Disclosure

Saturday, December 6, 2025

[email protected] (0](https://epaper.stcn.com/att/202512/06/ZQ06B017-HJ_eBook.pdf?utm_source=openai)

• He Eye Care (301103) Weekly Review: Up 4.38% This Week, Major Funds Recorded Cumulative Net Outflow of RMB 3.4721 Million_Data Weekly Review_Data Analysis_Stocks_Stockstar
• [Securities Research Report

September 13, 2022

Investment Rating:

Industry:

Medical Services](https://bigdata-s3.wmcloud.com/researchreport/2022-09/8873315c9cda0f9685b3bf8edecec92f.pdf?utm_source=openai)

• He Eye Care (301103) Historical Stock Data: Historical Quotes, Prices and Charts_Investing.com
• He Eye Care (301103) Latest Developments_F10_10jqka Financial Services
• He Eye Care (SZ301103) Stock Price, Quotes, Financial Reports and Data Reports - Xueqiu
• He Eye Care (301103) P/E | Valuation | Fundamentals - Lixinger
• Liaoning He Eye Hospital Group Co., Ltd. 2026 Semiannual Report Summary
• He Eye Care (301103)_Corporate Announcements_He Eye Care: Investor Relations Management Information 20260911_Sina Finance_Sina.com
• Stock Code: 301103　　Stock Abbreviation: He Eye Care　　Announcement No.: 2026-002
• Stock Code: 301103　　Stock Abbreviation: He Eye Care　　Announcement No.: 2026-024
• He Eye Care (301103)_Corporate Announcements_He Eye Care: 2026 Semiannual Report Summary_Sina Finance_Sina.com
• He Eye Care (301103)_Corporate Announcements_He Eye Care: Announcement on the Progress of Joint Investment in a Fund with a Professional Investment Institution_Sina Finance_Sina.com
• Xiao Jingji - He Eye Care
• After the completion of the fund-raising, registration of industrial and commercial changes, filing with the Asset Management Association of China and other preparatory procedures, the fund may formally commence operations. Therefore, uncertainty remains over whether the investment fund can complete its filing, its final fundraising size and subsequent investment progress. Investors are advised to note the investment risks.
• He Eye Care (301103)_Corporate Announcements_He Eye Care: Announcement on Cash Management Using Certain Idle Raised Funds, Including Excess Raised Funds, and Self-Owned Funds_Sina Finance_Sina.com
• He Eye Care: Announcement on Completion of Board Transition and Appointment of Senior Management Personnel and Securities Affairs Representative_Stock Channel_Stockstar
• Liaoning He Eye Hospital Group Co., Ltd. Full 2025 Annual Report
• He Eye Care (301103)_Stock Quotes, Market Overview_CFi.cn
• He Eye Care (301103.SZ) Stock Quotes_Historical Data_Major Funds - Dabolang Data
• He Eye Care (301103) Historical Stock Data: Historical Quotes, Prices and Charts_Investing.com
• He Eye Care (301103) Latest Developments_F10_10jqka Financial Services

This report was automatically retrieved, compiled and generated by AI based on publicly available information. Information is current as of the September 11, 2026 close; some technical-indicator pages do not clearly specify refresh dates and may not be synchronized with the latest closing data, so timing differences may exist. Specific data should be based on the company’s formal announcements and authoritative data terminals. This report is for information and research reference only and does not constitute investment advice. Investors should make independent judgments and bear investment risks themselves.