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2138

EC Healthcare SEHK:2138 Stock Report

Last Price

HK$7.89

Market Cap

HK$9.3b

7D

4.9%

1Y

-47.5%

Updated

26 Jun, 2022

Data

Company Financials +
2138 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance2/6
Financial Health5/6
Dividends2/6

2138 Stock Overview

EC Healthcare, an investment holding company, engages in the provision of medical and healthcare services in Hong Kong, Macau, and the People’s Republic of China.

EC Healthcare Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for EC Healthcare
Historical stock prices
Current Share PriceHK$7.89
52 Week HighHK$16.26
52 Week LowHK$5.80
Beta1.24
1 Month Change3.82%
3 Month Change1.94%
1 Year Change-47.54%
3 Year Change34.87%
5 Year Change198.86%
Change since IPO164.77%

Recent News & Updates

Jun 26
EC Healthcare (HKG:2138) Is Reducing Its Dividend To HK$0.042

EC Healthcare (HKG:2138) Is Reducing Its Dividend To HK$0.042

EC Healthcare's ( HKG:2138 ) dividend is being reduced to HK$0.042 on the 20th of September. This payment takes the...

May 26
When Should You Buy EC Healthcare (HKG:2138)?

When Should You Buy EC Healthcare (HKG:2138)?

EC Healthcare ( HKG:2138 ), is not the largest company out there, but it saw a significant share price rise of over 20...

Shareholder Returns

2138HK Consumer ServicesHK Market
7D4.9%-6.7%2.1%
1Y-47.5%-51.6%-23.3%

Return vs Industry: 2138 exceeded the Hong Kong Consumer Services industry which returned -51.6% over the past year.

Return vs Market: 2138 underperformed the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 2138's price volatile compared to industry and market?
2138 volatility
2138 Average Weekly Movement6.4%
Consumer Services Industry Average Movement8.9%
Market Average Movement7.0%
10% most volatile stocks in HK Market13.8%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 2138 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 2138's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20052,674Eddy Tanghttps://www.echealthcare.com

EC Healthcare, an investment holding company, engages in the provision of medical and healthcare services in Hong Kong, Macau, and the People’s Republic of China. It also provides quasi-medical, beauty and wellness, medical imaging, medical surgery, aesthetic medical beauty, aesthetic medical, dental, hair treatment, vaccine, chiropractic, psychological, and orthopedics services. In addition, it provides administrative, management, laboratory testing, performance marketing, marketing, and travel agency services; engages in the sale of beauty and skincare products; and is involved in the properties investment and healthcare machines holding businesses.

EC Healthcare Fundamentals Summary

How do EC Healthcare's earnings and revenue compare to its market cap?
2138 fundamental statistics
Market CapHK$9.30b
Earnings (TTM)HK$197.50m
Revenue (TTM)HK$2.92b

47.1x

P/E Ratio

3.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2138 income statement (TTM)
RevenueHK$2.92b
Cost of RevenueHK$1.73b
Gross ProfitHK$1.19b
Other ExpensesHK$987.91m
EarningsHK$197.50m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.17
Gross Margin40.60%
Net Profit Margin6.76%
Debt/Equity Ratio10.0%

How did 2138 perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

84%

Payout Ratio

Does 2138 pay a reliable dividends?

See 2138 dividend history and benchmarks
When do you need to buy 2138 by to receive an upcoming dividend?
EC Healthcare dividend dates
Ex Dividend DateSep 05 2022
Dividend Pay DateSep 20 2022
Days until Ex dividend70 days
Days until Dividend pay date85 days

Does 2138 pay a reliable dividends?

See 2138 dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is 2138 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2138?

Other financial metrics that can be useful for relative valuation.

2138 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.4x
Enterprise Value/EBITDA22.4x
PEG Ratio1.2x

Price to Earnings Ratio vs Peers

How does 2138's PE Ratio compare to its peers?

2138 PE Ratio vs Peers
The above table shows the PE ratio for 2138 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average65.4x

Price-To-Earnings vs Peers: 2138 is good value based on its Price-To-Earnings Ratio (47.1x) compared to the peer average (65.4x).


Price to Earnings Ratio vs Industry

How does 2138's PE Ratio compare vs other companies in the Hong Kong Consumer Services Industry?

Price-To-Earnings vs Industry: 2138 is expensive based on its Price-To-Earnings Ratio (47.1x) compared to the Hong Kong Consumer Services industry average (8.3x)


Price to Earnings Ratio vs Fair Ratio

What is 2138's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2138 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio47.1x
Fair PE Ratio18.2x

Price-To-Earnings vs Fair Ratio: 2138 is expensive based on its Price-To-Earnings Ratio (47.1x) compared to the estimated Fair Price-To-Earnings Ratio (18.2x).


Share Price vs Fair Value

What is the Fair Price of 2138 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2138 (HK$7.89) is trading below our estimate of fair value (HK$43.52)

Significantly Below Fair Value: 2138 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 2138 is poor value based on its PEG Ratio (1.2x)


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Future Growth

How is EC Healthcare forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


40.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2138's forecast earnings growth (40.4% per year) is above the savings rate (1.5%).

Earnings vs Market: 2138's earnings (40.4% per year) are forecast to grow faster than the Hong Kong market (17% per year).

High Growth Earnings: 2138's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2138's revenue (15.2% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 2138's revenue (15.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2138's Return on Equity is forecast to be very high in 3 years time (43.8%).


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Past Performance

How has EC Healthcare performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-4.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2138 has high quality earnings.

Growing Profit Margin: 2138's current net profit margins (6.8%) are lower than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: 2138's earnings have declined by 4.2% per year over the past 5 years.

Accelerating Growth: 2138's earnings growth over the past year (2.4%) exceeds its 5-year average (-4.2% per year).

Earnings vs Industry: 2138 earnings growth over the past year (2.4%) underperformed the Consumer Services industry 17.3%.


Return on Equity

High ROE: 2138's Return on Equity (11.5%) is considered low.


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Financial Health

How is EC Healthcare'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: 2138's short term assets (HK$1.5B) exceed its short term liabilities (HK$1.4B).

Long Term Liabilities: 2138's short term assets (HK$1.5B) exceed its long term liabilities (HK$1.1B).


Debt to Equity History and Analysis

Debt Level: 2138 has more cash than its total debt.

Reducing Debt: 2138's debt to equity ratio has increased from 0.1% to 10% over the past 5 years.

Debt Coverage: 2138's debt is well covered by operating cash flow (322.3%).

Interest Coverage: 2138's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.83%

Current Dividend Yield

Upcoming Dividend Payment

TodayJun 26 2022Ex Dividend DateSep 05 2022Dividend Pay DateSep 20 202215 days from Ex DividendBuy in the next 70 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 2138's dividend (1.83%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 2138's dividend (1.83%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).


Stability and Growth of Payments

Stable Dividend: 2138 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 2138's dividend payments have increased, but the company has only paid a dividend for 6 years.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (84.1%), 2138's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (27.8%), 2138's dividend payments are well covered by cash flows.


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Management

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

1.5yrs

Average management tenure


CEO

Eddy Tang (42 yo)

0.75

Tenure

HK$1,321,000

Compensation

Mr. Chi Fai Tang has been the Chairman and Executive Director at EC Healthcare (formerly known as Union Medical Healthcare Limited) since November 4, 2015 and has been its Co-Chief Executive Officer since...


CEO Compensation Analysis

Compensation vs Market: Eddy's total compensation ($USD168.30K) is below average for companies of similar size in the Hong Kong market ($USD552.08K).

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


Leadership Team

Experienced Management: 2138's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: 2138's board of directors are considered experienced (4.8 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 been diluted in the past year, with total shares outstanding growing by 6.3%.


Top Shareholders

Company Information

EC Healthcare's employee growth, exchange listings and data sources


Key Information

  • Name: EC Healthcare
  • Ticker: 2138
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Implied Market Cap: HK$9.297b
  • Shares outstanding: 1.18b
  • Website: https://www.echealthcare.com

Number of Employees


Location

  • EC Healthcare
  • L 50, Langham Place Office Tower
  • Room 2108, 21st Floor
  • Mong Kok
  • Kowloon
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.