Elderly homes operator Pine Care targets Hong Kong expansion, entry into high-end market
The first listed elderly care home operator in Hong Kong says it is not ready to expand into the mainland where a different business model is required
Pine Care Group, the first listed operator of homes for the elderly in Hong Kong, is aiming to use the funds raised from the flotation to enlarge its market share and break into the high-end market.
The company is cautious, however, about expanding to the mainland where it says finding a suitable business model will prove challenging.
Pine Care, the second largest private care home provider in the city, with 3 per cent market share, started trading on the stock exchange on February 15 after raising HK$121 million. More than three quarters of this (78 per cent) will go towards buying property to house a new care home in the same mould as previous ones, while 12 per cent will be spent on launching its first luxury home.
“The costs for operating elder homes is very high. Most of the costs are fixed, no matter how many clients we have, so the key for profitability is to maintain a high occupancy rate,” said Billy Yim Pui-kei, chief executive of Pine Care Group.
Most of the costs are fixed, no matter how many clients we have, so the key for profitability is to maintain a high occupancy rate
He said he cares more about the quality of care provided than the pace of expansion.