Wenzhou Kangning Hospital (DB:4WK) - Share price, News & Analysis

4WK fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	3/6
Past Performance	5/6
Financial Health	5/6
Dividends	0/6

4WK Stock Overview

Wenzhou Kangning Hospital Co., Ltd. operates and manages a network of healthcare facilities in the People’s Republic of China.

Rewards

Trading at 81.6% below our estimate of its fair value

Earnings are forecast to grow 16.97% per year

Earnings grew by 83.7% over the past year

Risk Analysis

Volatile share price over the past 3 months

Latest financial reports are more than 6 months old

Wenzhou Kangning Hospital Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Wenzhou Kangning Hospital
Historical stock prices
Current Share Price	HK$1.38
52 Week High	HK$5.60
52 Week Low	HK$0.83
Beta	0.26
1 Month Change	3.76%
3 Month Change	21.05%
1 Year Change	-50.71%
3 Year Change	-70.94%
5 Year Change	-65.83%
Change since IPO	-74.58%

Shareholder Returns

	4WK	DE Healthcare	DE Market
7D	0.7%	0.2%	4.2%
1Y	-50.7%	-19.0%	-11.4%

Return vs Industry: 4WK underperformed the German Healthcare industry which returned -19.8% over the past year.

Return vs Market: 4WK underperformed the German Market which returned -12.4% over the past year.

Price Volatility

Is 4WK's price volatile compared to industry and market?
4WK volatility
4WK Average Weekly Movement	10.8%
Healthcare Industry Average Movement	5.2%
Market Average Movement	6.4%
10% most volatile stocks in DE Market	10.8%
10% least volatile stocks in DE Market	3.5%

Stable Share Price: 4WK is more volatile than 75% of German stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: 4WK's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of German stocks.

About the Company

Founded	Employees	CEO	Website
1996	3,763	Lianyue Wang	https://www.knhosp.cn

Wenzhou Kangning Hospital Co., Ltd. operates and manages a network of healthcare facilities in the People’s Republic of China. It primarily focuses on providing psychiatric specialty care. The company also provides property leasing and sale services; and software and information technology services, as well as hospital management, forensic authentication, and medical services.

Wenzhou Kangning Hospital Fundamentals Summary

How do Wenzhou Kangning Hospital's earnings and revenue compare to its market cap?
4WK fundamental statistics
Market Cap	CN¥749.23m
Earnings (TTM)	CN¥76.50m
Revenue (TTM)	CN¥1.19b

9.8x

P/E Ratio

0.6x

P/S Ratio

Is 4WK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
4WK income statement (TTM)
Revenue	CN¥1.19b
Cost of Revenue	CN¥845.31m
Gross Profit	CN¥343.64m
Other Expenses	CN¥267.13m
Earnings	CN¥76.50m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	1.06
Gross Margin	28.90%
Net Profit Margin	6.43%
Debt/Equity Ratio	41.1%

How did 4WK perform over the long term?

See historical performance and comparison

Valuation

Is Wenzhou Kangning Hospital undervalued compared to its fair value and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 4WK (€1.38) is trading below our estimate of fair value (€7.51)

Significantly Below Fair Value: 4WK is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 4WK is good value based on its PE Ratio (9.8x) compared to the German Healthcare industry average (19x).

PE vs Market: 4WK is good value based on its PE Ratio (9.8x) compared to the German market (17.5x).

Price to Earnings Growth Ratio

PEG Ratio: 4WK is good value based on its PEG Ratio (0.6x)

Price to Book Ratio

PB vs Industry: 4WK is good value based on its PB Ratio (0.6x) compared to the DE Healthcare industry average (1.3x).

Future Growth

How is Wenzhou Kangning Hospital forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

17.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4WK's forecast earnings growth (17% per year) is above the savings rate (-0.05%).

Earnings vs Market: 4WK's earnings (17% per year) are forecast to grow faster than the German market (7.8% per year).

High Growth Earnings: 4WK's earnings are forecast to grow, but not significantly.

Revenue vs Market: 4WK's revenue (12.6% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: 4WK's revenue (12.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 4WK's Return on Equity is forecast to be low in 3 years time (7.7%).

Past Performance

How has Wenzhou Kangning Hospital performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

1.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 4WK has high quality earnings.

Growing Profit Margin: 4WK's current net profit margins (6.4%) are higher than last year (4.4%).

Past Earnings Growth Analysis

Earnings Trend: 4WK's earnings have grown by 1.6% per year over the past 5 years.

Accelerating Growth: 4WK's earnings growth over the past year (83.7%) exceeds its 5-year average (1.6% per year).

Earnings vs Industry: 4WK earnings growth over the past year (83.7%) exceeded the Healthcare industry 55.1%.

Return on Equity

High ROE: 4WK's Return on Equity (5.2%) is considered low.

Financial Health

How is Wenzhou Kangning Hospital's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 4WK's short term assets (CN¥783.8M) exceed its short term liabilities (CN¥554.2M).

Long Term Liabilities: 4WK's short term assets (CN¥783.8M) exceed its long term liabilities (CN¥484.6M).

Debt to Equity History and Analysis

Debt Level: 4WK's net debt to equity ratio (18.5%) is considered satisfactory.

Reducing Debt: 4WK's debt to equity ratio has increased from 7.3% to 41.1% over the past 5 years.

Debt Coverage: 4WK's debt is well covered by operating cash flow (38.8%).

Interest Coverage: 4WK's interest payments on its debt are well covered by EBIT (6.7x coverage).

Balance Sheet

Dividend

What is Wenzhou Kangning Hospital current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.77%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 4WK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 4WK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 4WK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 4WK's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 4WK is not paying a notable dividend for the German market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 4WK has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Healthcare industry.

Management

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

7.7yrs

Average management tenure

CEO

Lianyue Wang (52 yo)

10.67yrs

Tenure

CN¥483,277

Compensation

Ms. Lianyue Wang serves as General Manager at Wenzhou Kangning Hospital Co., Ltd. Since September 2011, and has been its Executive Director since September 22, 2014 were she is primarily responsible for th...

CEO Compensation Analysis

Compensation vs Market: Lianyue's total compensation ($USD71.73K) is below average for companies of similar size in the German market ($USD390.84K).

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

Leadership Team

Experienced Management: 4WK's management team is seasoned and experienced (7.7 years average tenure).

Board Members

Experienced Board: 4WK's board of directors are considered experienced (4.9 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31