SEHK:2327

Stock Analysis Report

Meilleure Health International Industry Group

Executive Summary

Meilleure Health International Industry Group Limited, an investment holding company, trades in health care products, and construction and chemical materials in Hong Kong and Mainland China.

Rewards

Trading at 86.7% below its fair value

Earnings grew by 1.9% over the past year

Risk Analysis

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Profit margins (39.9%) are lower than last year (61.4%)

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

How has Meilleure Health International Industry Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2327's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.3%

2327

2.6%

HK Trade Distributors

2.2%

HK Market


1 Year Return

11.7%

2327

-4.7%

HK Trade Distributors

-0.8%

HK Market

Return vs Industry: 2327 exceeded the Hong Kong Trade Distributors industry which returned -4.7% over the past year.

Return vs Market: 2327 exceeded the Hong Kong Market which returned -0.8% over the past year.


Shareholder returns

2327IndustryMarket
7 Day-2.3%2.6%2.2%
30 Day-12.2%-22.5%-0.6%
90 Day-24.6%-21.8%-0.9%
1 Year11.7%11.7%-1.5%-4.7%2.8%-0.8%
3 Year12.1%10.3%-14.3%-21.2%19.5%7.4%
5 Year50.8%48.3%-51.8%-59.7%20.7%0.5%

Price Volatility Vs. Market

How volatile is Meilleure Health International Industry Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Meilleure Health International Industry Group 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: 2327 (HK$0.43) is trading below our estimate of fair value (HK$3.23)

Significantly Below Fair Value: 2327 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2327 is poor value based on its PE Ratio (20.5x) compared to the Trade Distributors industry average (9.1x).

PE vs Market: 2327 is poor value based on its PE Ratio (20.5x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2327's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2327 is overvalued based on its PB Ratio (1.6x) compared to the HK Trade Distributors industry average (0.6x).


Next Steps

Future Growth

How is Meilleure Health International Industry Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

9.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 2327's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if 2327's earnings are forecast to grow faster than the Hong Kong market

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

Revenue vs Market: 2327's revenue (9.7% per year) is forecast to grow slower than the Hong Kong market (10.3% per year).

High Growth Revenue: 2327's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 2327's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Meilleure Health International Industry Group performed over the past 5 years?

42.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2327 has a large one-off gain of HK$61.6M impacting its June 30 2019 financial results.

Growing Profit Margin: 2327's current net profit margins (39.9%) are lower than last year (61.4%).


Past Earnings Growth Analysis

Earnings Trend: 2327's earnings have grown significantly by 42.1% per year over the past 5 years.

Accelerating Growth: 2327's earnings growth over the past year (1.9%) is below its 5-year average (42.1% per year).

Earnings vs Industry: 2327 earnings growth over the past year (1.9%) exceeded the Trade Distributors industry 1%.


Return on Equity

High ROE: 2327's Return on Equity (6.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Meilleure Health International Industry Group's financial position?


Financial Position Analysis

Short Term Liabilities: 2327's short term assets (HK$999.2M) exceed its short term liabilities (HK$300.9M).

Long Term Liabilities: 2327's short term assets (HK$999.2M) exceed its long term liabilities (HK$355.4M).


Debt to Equity History and Analysis

Debt Level: 2327's debt to equity ratio (31.3%) is considered satisfactory.

Reducing Debt: 2327's debt to equity ratio has reduced from 101% to 31.3% over the past 5 years.

Debt Coverage: 2327's debt is well covered by operating cash flow (32.7%).

Interest Coverage: 2327's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet

Inventory Level: 2327 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2327's debt is covered by short term assets (assets are 2.7x debt).


Next Steps

Dividend

What is Meilleure Health International Industry Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.2%industryaverage3.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 2327's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2327's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2327's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2327's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2327 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2327's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Meilleure Health International Industry Group's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Wen Chuan Zhou (36yo)

6.3yrs

Tenure

HK$540,000

Compensation

Ms. Wen Chuan Zhou has been the Chief Executive Officer and Executive Director of U-Home Group Holdings Limited since September 23, 2013. Ms. Zhou has been Vice Chairman of U-Home Group Holdings Limited. S ...


CEO Compensation Analysis

Compensation vs Market: Wen Chuan's total compensation ($USD69.12K) is below average for companies of similar size in the Hong Kong market ($USD296.65K).

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


Management Age and Tenure

3.4yrs

Average Tenure

53yo

Average Age

Experienced Management: 2327's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

57yo

Average Age

Experienced Board: 2327's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyHK$4,260,53805 Sep 19
Xuzhou Zhou
EntityIndividual
Role
Co-Chairman of the Board
Co-Chairmen of the Board
Shares8,382,000
Max PriceHK$0.51
BuyHK$5,742,99514 Jun 19
Xuzhou Zhou
EntityIndividual
Role
Co-Chairman of the Board
Co-Chairmen of the Board
Shares8,772,000
Max PriceHK$0.65
BuyHK$792,00212 Jun 19
Xuzhou Zhou
EntityIndividual
Role
Co-Chairman of the Board
Co-Chairmen of the Board
Shares1,200,000
Max PriceHK$0.66
BuyHK$4,129,60904 Jun 19
Xuzhou Zhou
EntityIndividual
Role
Co-Chairman of the Board
Co-Chairmen of the Board
Shares6,600,000
Max PriceHK$0.63
BuyHK$3,312,43520 May 19
Xuzhou Zhou
EntityIndividual
Role
Co-Chairman of the Board
Co-Chairmen of the Board
Shares4,500,000
Max PriceHK$0.74
BuyHK$2,430,00317 May 19
Xuzhou Zhou
EntityIndividual
Role
Co-Chairman of the Board
Co-Chairmen of the Board
Shares3,000,000
Max PriceHK$0.81
BuyHK$13,649,99927 Apr 19
Wentao Zeng
EntityIndividual
Role
Co-Chairman of the Board
Co-Chairmen & Executive Director
Shares15,000,000
Max PriceHK$0.91
BuyHK$39,131,81827 Apr 19
Xuzhou Zhou
EntityIndividual
Role
Co-Chairman of the Board
Co-Chairmen of the Board
Shares43,002,000
Max PriceHK$0.91
SellHK$13,565,27711 Apr 19
Eagle Best Limited
EntityCompany
Shares9,180,000
Max PriceHK$1.48
SellHK$3,276,41311 Apr 19
Eagle Best Limited
EntityCompany
Shares2,292,000
Max PriceHK$1.43
SellHK$144,00010 Apr 19
Chi Wai Chau
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares90,000
Max PriceHK$1.60
SellHK$5,096,53710 Apr 19
Eagle Best Limited
EntityCompany
Shares3,390,000
Max PriceHK$1.50
SellHK$1,463,90004 Apr 19
Eagle Best Limited
EntityCompany
Shares1,248,000
Max PriceHK$1.17

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.2%.


Management Team

  • Man Chun Chu (59yo)

    Human Resources Manager

    • Tenure: 0yrs
  • Chun Xia Liu (57yo)

    Quality Director of KJP and Director of Yunnan Jiwa Pharm-Tech Co Ltd

    • Tenure: 0yrs
  • Dong Mei Luo (50yo)

    Executive Assistant to Chairman and COO of Kunming Jida Pharmaceutical Company Ltd

    • Tenure: 0yrs
  • Chen Bang Hua (64yo)

    President of Jiwa Rintech Holdings Limited and Executive Director of Jiwa Rintech Holdings Limited

    • Tenure: 0yrs
  • Pu Feng (47yo)

    Chief of R&D Dept - Kunming Jida Pharmaceutical Company Ltd and Director of R&D Dept - Kunming Jida

    • Tenure: 0yrs
  • Man Fai Shek (44yo)

    Financial Controller

    • Tenure: 0yrs
  • Xuzhou Zhou (63yo)

    Co-Chairmen of the Board

    • Tenure: 0.6yrs
    • Compensation: HK$500.00k
  • Wen Chuan Zhou (36yo)

    Vice Chairman & CEO

    • Tenure: 6.3yrs
    • Compensation: HK$540.00k
  • Shu Pai Li (43yo)

    CFO & Company Secretary

    • Tenure: 0.4yrs
  • Wentao Zeng (56yo)

    Co-Chairmen & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$120.00k

Board Members

  • Wilton Chau (58yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$120.00k
  • Chun Xia Liu (57yo)

    Quality Director of KJP and Director of Yunnan Jiwa Pharm-Tech Co Ltd

    • Tenure: 0yrs
  • Chen Bang Hua (64yo)

    President of Jiwa Rintech Holdings Limited and Executive Director of Jiwa Rintech Holdings Limited

    • Tenure: 0yrs
  • Zhenhua Mao (55yo)

    Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: HK$120.00k
  • Xuzhou Zhou (63yo)

    Co-Chairmen of the Board

    • Tenure: 0.6yrs
    • Compensation: HK$500.00k
  • Wen Chuan Zhou (36yo)

    Vice Chairman & CEO

    • Tenure: 6.3yrs
    • Compensation: HK$540.00k
  • Guanjiang Gao (66yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$120.00k
  • Wentao Zeng (56yo)

    Co-Chairmen & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$120.00k
  • Peng Wu (36yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs

Company Information

Meilleure Health International Industry Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Meilleure Health International Industry Group Limited
  • Ticker: 2327
  • Exchange: SEHK
  • Founded:
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$1.858b
  • Shares outstanding: 4.27b
  • Website: https://www.meilleure.com.cn

Number of Employees


Location

  • Meilleure Health International Industry Group Limited
  • Tower 1
  • Unit 2906
  • Admiralty
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2327SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2003

Biography

Meilleure Health International Industry Group Limited, an investment holding company, trades in health care products, and construction and chemical materials in Hong Kong and Mainland China. It operates th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 12:41
End of Day Share Price2019/12/12 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.