This High-Yield Eyecare Stock is Cashing in on China’s Aging Boom – 9.5% Dividend Inside

Chaoju Eyecare (HKG:2219) is an ophthalmic healthcare group with RMB 1.4 billion in revenue and a current market capitalization of HKD 2.2 billion. Founded in Inner Mongolia by a family of doctors in 1988, the company has built a network of ophthalmic hospitals and optical centers across seven major regions, primarily in North China.

As of June 2024, Chaoju operates 31 ophthalmic hospitals and 29 optical centers. These facilities are strategically located in seven key regions: western Inner Mongolia and its surrounding areas, eastern Inner Mongolia and its adjacent region, eastern Zhejiang, northern Zhejiang, northern Jiangsu, the Ningxia Kaiming region, and Beijing.

Chaoju's ophthalmic hospitals specialize in providing comprehensive eye care services, while its optical centers offer a range of optical products and services to cater to diverse customer needs.

Chaoju generates revenue primarily from two categories of services:

• Consumer ophthalmic services (52% of revenue):

  • Includes treatments and preventive care for various ophthalmic disorders, such as refractive correction (including presbyopia correction), myopia prevention and control, dry eye syndrome, and oculoplastic procedures.

  • Also includes the provision of optical products and services.

  • These services are not covered by public health insurance programs.

• Basic ophthalmic services (48% of revenue):

  • Covers the treatment of common eye diseases, including cataracts, glaucoma, squint, ocular fundus diseases, ocular surface diseases, orbital diseases, and pediatric eye conditions.

  • Costs for these services are generally eligible for public health insurance coverage.