The CEO Of Jinhai Medical Technology Limited (HKG:2225) Might See A Pay Rise On The Horizon

Key Insights

• Jinhai Medical Technology's Annual General Meeting to take place on 26th of June
• Total pay for CEO Zhenfei Wang includes S$108.0k salary
• The overall pay is 62% below the industry average
• Over the past three years, Jinhai Medical Technology's EPS fell by 117% and over the past three years, the total shareholder return was 107%

Shareholders will probably not be disappointed by the robust results at Jinhai Medical Technology Limited (HKG:2225) recently and they will be keeping this in mind as they go into the AGM on 26th of June. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

View our latest analysis for Jinhai Medical Technology

How Does Total Compensation For Zhenfei Wang Compare With Other Companies In The Industry?

At the time of writing, our data shows that Jinhai Medical Technology Limited has a market capitalization of HK$5.9b, and reported total annual CEO compensation of S$111k for the year to December 2023. That's a notable decrease of 54% on last year. Notably, the salary which is S$108.0k, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Professional Services industry with market capitalizations ranging from HK$3.1b to HK$12b, the reported median CEO total compensation was S$292k. Accordingly, Jinhai Medical Technology pays its CEO under the industry median.

Component	2023	2022	Proportion (2023)
Salary	S$108k	S$237k	97%
Other	S$3.0k	S$2.9k	3%
Total Compensation	S$111k	S$240k	100%

On an industry level, roughly 89% of total compensation represents salary and 11% is other remuneration. Jinhai Medical Technology has gone down a largely traditional route, paying Zhenfei Wang a high salary, giving it preference over non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Jinhai Medical Technology Limited's Growth Numbers

Jinhai Medical Technology Limited has reduced its earnings per share by 117% a year over the last three years. It achieved revenue growth of 105% over the last year.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Jinhai Medical Technology Limited Been A Good Investment?

Boasting a total shareholder return of 107% over three years, Jinhai Medical Technology Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Jinhai Medical Technology pays its CEO a majority of compensation through a salary. While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Jinhai Medical Technology that investors should think about before committing capital to this stock.

Important note: Jinhai Medical Technology is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com