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Union Medical Healthcare

Executive Summary

Union Medical Healthcare Limited, an investment holding company, engages in the provision of medical, aesthetic medical, and beauty and wellness services in Hong Kong and internationally.


Snowflake Analysis

Undervalued with high growth potential and pays a dividend.

Share Price & News

How has Union Medical Healthcare's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1UM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

1UM

0.4%

DE Consumer Services

-0.6%

DE Market


1 Year Return

-39.5%

1UM

8.9%

DE Consumer Services

3.0%

DE Market

Return vs Industry: 1UM underperformed the German Consumer Services industry which returned 9.2% over the past year.

Return vs Market: 1UM underperformed the German Market which returned 2.5% over the past year.


Shareholder returns

1UMIndustryMarket
7 Day-2.1%0.4%-0.6%
30 Day-1.7%0.9%-0.1%
90 Day-8.6%10.9%16.4%
1 Year-35.7%-39.5%10.8%8.9%5.2%3.0%
3 Year100.2%63.5%-4.6%-9.4%1.0%-6.9%
5 Yearn/a-45.0%-59.3%8.0%-6.4%

Price Volatility Vs. Market

How volatile is Union Medical Healthcare's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Union Medical Healthcare undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1UM (€0.47) is trading below our estimate of fair value (€2.45)

Significantly Below Fair Value: 1UM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1UM is good value based on its PE Ratio (14.2x) compared to the Consumer Services industry average (15.4x).

PE vs Market: 1UM is good value based on its PE Ratio (14.2x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: 1UM is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 1UM is overvalued based on its PB Ratio (4.1x) compared to the XE Consumer Services industry average (2.6x).


Next Steps

Future Growth

How is Union Medical Healthcare forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

26.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1UM's forecast earnings growth (26.5% per year) is above the savings rate (0.2%).

Earnings vs Market: 1UM's earnings (26.5% per year) are forecast to grow faster than the German market (22.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1UM's revenue (15.8% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: 1UM's revenue (15.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1UM's Return on Equity is forecast to be very high in 3 years time (57.9%).


Next Steps

Past Performance

How has Union Medical Healthcare performed over the past 5 years?

18.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1UM has high quality earnings.

Growing Profit Margin: 1UM's current net profit margins (14.7%) are lower than last year (19.5%).


Past Earnings Growth Analysis

Earnings Trend: 1UM's earnings have grown by 18.8% per year over the past 5 years.

Accelerating Growth: 1UM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1UM had negative earnings growth (-20.6%) over the past year, making it difficult to compare to the Consumer Services industry average (57.7%).


Return on Equity

High ROE: 1UM's Return on Equity (26.5%) is considered high.


Next Steps

Financial Health

How is Union Medical Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: 1UM's short term assets (HK$1.1B) do not cover its short term liabilities (HK$1.1B).

Long Term Liabilities: 1UM's short term assets (HK$1.1B) exceed its long term liabilities (HK$316.4M).


Debt to Equity History and Analysis

Debt Level: 1UM's debt to equity ratio (22.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1UM's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1UM's debt is well covered by operating cash flow (124.9%).

Interest Coverage: 1UM's interest payments on its debt are well covered by EBIT (20.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Union Medical Healthcare current dividend yield, its reliability and sustainability?

5.57%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 1UM's dividend (5.57%) is higher than the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: 1UM's dividend (5.57%) is in the top 25% of dividend payers in the German market (3.84%)


Stability and Growth of Payments

Stable Dividend: 1UM has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1UM's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.1%), 1UM's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1UM's dividends in 3 years are forecast to be covered by earnings (79% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Chi Fai Tang (41yo)

4.67yrs

Tenure

HK$1,236,000

Compensation

Mr. Chi Fai Tang has been the Chairman, Chief Executive Officer and Executive Director of Union Medical Healthcare Limited since November 4, 2015. Mr. Tang founded Union Medical Healthcare in November 23,  ...


CEO Compensation Analysis

Compensation vs Market: Chi Fai's total compensation ($USD159.48K) is below average for companies of similar size in the German market ($USD1.06M).

Compensation vs Earnings: Chi Fai's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Chi Fai Tang
Chairman & CEO4.67yrsHK$1.24m73.26% HK$343.8m
Gabriel Lee
COO & Executive Director4.67yrsHK$5.59m0.33% HK$1.5m
Heung Wing Lee
CFO & Executive Director0.50yrno data0.038% HK$179.5k
Chi Cheung Wong
Chief Digital Officer & Executive Director0.50yrno data0.020% HK$92.9k
Chun Pong Siu
Company Secretary2.83yrsno datano data

3.8yrs

Average Tenure

41yo

Average Age

Experienced Management: 1UM's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chi Fai Tang
Chairman & CEO4.67yrsHK$1.24m73.26% HK$343.8m
Gabriel Lee
COO & Executive Director4.67yrsHK$5.59m0.33% HK$1.5m
Heung Wing Lee
CFO & Executive Director0.50yrno data0.038% HK$179.5k
Chi Cheung Wong
Chief Digital Officer & Executive Director0.50yrno data0.020% HK$92.9k
Ching Nam Ma
Independent Non-Executive Director4.42yrsHK$810.05kno data
Kun Shing Luk
Non Executive Director4.83yrsHK$199.90k0.26% HK$1.2m
Andrew Look
Independent Non-Executive Director4.42yrsHK$220.00kno data
Dasong Wang
Non-Executive Director0.25yrno datano data
Chi Hang Lam
Independent Non-Executive Director2.83yrsHK$120.00k0.0027% HK$12.7k

4.4yrs

Average Tenure

41yo

Average Age

Experienced Board: 1UM's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Union Medical Healthcare Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Union Medical Healthcare Limited
  • Ticker: 1UM
  • Exchange: DB
  • Founded: 2005
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: HK$4.110b
  • Listing Market Cap: HK$469.284m
  • Shares outstanding: 995.06m
  • Website: https://www.umhgp.com

Number of Employees


Location

  • Union Medical Healthcare Limited
  • Langham Place Office Tower
  • Suites 7-9, L21
  • Mong Kok
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2138SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2016
1UMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2016
UNHL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2016

Biography

Union Medical Healthcare Limited, an investment holding company, engages in the provision of medical, aesthetic medical, and beauty and wellness services in Hong Kong and internationally. The group provides a range of services and products, including aesthetic medical solutions under DR REBORN brand; and preventive and precision medicine. It also operates primary care clinics; chiropractic services center under SPINE Central brand; health management center under re:HEALTH brand, vaccine center under HKPV brand, dental center under UMH DENTAL CARE brand, diagnostic and imaging center under HKAI brand; oncology treatment center under reVIVE brand; day procedure center under HKMED brand; and specialty clinic under SPECIALISTS CENTRAL brand. The company is also involved in the provision of quasi-medical services; sale of skincare, healthcare, and beauty products; energy-based procedures performed by trained therapists; and traditional beauty services. In addition, it offers administrative, marketing, and management services, as well as owns trademarks and holds healthcare machines. It has strategic collaboration with Tencent Doctorwork to jointly establish clinics in Hong Kong. Union Medical Healthcare Limited was founded in 2005 and is headquartered in Mong Kok, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/09 21:30
End of Day Share Price2020/07/09 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.