SEHK:2138

Stock Analysis Report

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.

Snowflake

Fundamentals

Outstanding track record with excellent balance sheet.

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


Market Performance


7 Day Return

12.2%

2138

2.3%

HK Consumer Services

0.9%

HK Market


1 Year Return

34.9%

2138

5.4%

HK Consumer Services

0.6%

HK Market

Return vs Industry: 2138 exceeded the Hong Kong Consumer Services industry which returned 5.4% over the past year.

Return vs Market: 2138 exceeded the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

2138IndustryMarket
7 Day12.2%2.3%0.9%
30 Day5.5%5.1%0.5%
90 Day-20.3%6.6%-4.3%
1 Year43.4%34.9%7.6%5.4%4.2%0.6%
3 Year174.6%124.8%4.1%-1.3%15.6%4.0%
5 Yearn/a10.1%1.7%20.0%-0.08%

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

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: 2138 (HK$5.8) is trading below our estimate of fair value (HK$14.98)

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


Price To Earnings Ratio

PE vs Industry: 2138 is good value based on its PE Ratio (15.8x) compared to the Consumer Services industry average (17.2x).

PE vs Market: 2138 is poor value based on its PE Ratio (15.8x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 2138 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 2138 is overvalued based on its PB Ratio (5.5x) compared to the HK Consumer Services industry average (2x).


Next Steps

Future Growth

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

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2138's forecast earnings growth (15.6% per year) is above the savings rate (2%).

Earnings vs Market: 2138's earnings (15.6% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).

High Growth Earnings: 2138's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2138's revenue (16.9% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 2138's revenue (16.9% 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%).


Next Steps

Past Performance

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

24.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2138's earnings have grown significantly by 24.2% per year over the past 5 years.

Accelerating Growth: 2138's earnings growth over the past year (29.3%) exceeds its 5-year average (24.2% per year).

Earnings vs Industry: 2138 earnings growth over the past year (29.3%) exceeded the Consumer Services industry 14.4%.


Return on Equity

High ROE: 2138's Return on Equity (33%) is considered high.


Return on Assets

ROA vs Industry: 2138 has a higher Return on Assets than the Consumer Services industry average last year.


Return on Capital Employed

ROCE Improving: 2138 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Union Medical Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: 2138's short term assets (HK$1.4B) exceeds its short term liabilities (HK$1.1B)

Long Term Liabilities: 2138's short term assets (1.4B) exceeds its long term liabilities (56.2M)


Debt to Equity History and Analysis

Debt Level: 2138's debt to equity ratio (42.7%) is considered high

Reducing Debt: 2138 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: 2138's debt is well covered by operating cash flow (47.9%).

Interest Coverage: 2138 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 2138 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2138's debt is covered by short term assets (assets are 2.822290x debt).


Next Steps

Dividend

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

6.03%

Current Dividend Yield


Dividend Yield vs Market

company6.0%marketbottom25%2.3%markettop25%6.3%industryaverage2.3%forecastin3Years6.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 2138's dividend (6.03%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 2138's dividend (6.03%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: Whilst dividend payments have been stable, 2138 has been paying a dividend for less than 10 years.

Growing Dividend: 2138's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.3%), 2138's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2138's dividends in 3 years are forecast to be covered by earnings (66.2% payout ratio).


Next Steps

Management

What is the CEO of Union Medical Healthcare's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Chi Fai Tang (40yo)

3.9yrs

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 ($USD157.61K) is below average for companies of similar size in the Hong Kong market ($USD404.66K).

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


Management Age and Tenure

3.0yrs

Average Tenure

40yo

Average Age

Experienced Management: 2138's management team is considered experienced (3 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

40yo

Average Age

Experienced Board: 2138's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: 2138 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$527,64003 Oct 19
Kun Shing Luk
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares100,000
Max PriceHK$5.28
BuyHK$329,89018 Sep 19
Chi Fai Tang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares56,000
Max PriceHK$5.89
BuyHK$754,72714 Sep 19
Chi Fai Tang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares128,000
Max PriceHK$5.90
BuyHK$126,70914 Sep 19
Chi Fai Tang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares22,000
Max PriceHK$5.76
BuyHK$413,88713 Sep 19
Chi Fai Tang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares71,000
Max PriceHK$5.83
BuyHK$2,137,06607 Sep 19
Chi Fai Tang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares362,000
Max PriceHK$5.90
BuyHK$57,13006 Sep 19
Chi Fai Tang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,000
Max PriceHK$5.71
BuyHK$818,23806 Sep 19
Chi Fai Tang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares139,000
Max PriceHK$5.89
BuyHK$2,051,68705 Sep 19
Chi Fai Tang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares366,000
Max PriceHK$5.61
BuyHK$2,259,13923 Jan 19
Chi Fai Tang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares420,000
Max PriceHK$5.38
BuyHK$710,18622 Jan 19
Chi Fai Tang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares132,000
Max PriceHK$5.38
BuyHK$256,68021 Jan 19
Chi Fai Tang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares48,000
Max PriceHK$5.35
BuyHK$819,45418 Jan 19
Chi Fai Tang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares155,000
Max PriceHK$5.29
BuyHK$90,63017 Jan 19
Chi Fai Tang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares18,000
Max PriceHK$5.03
BuyHK$407,90017 Jan 19
Chi Fai Tang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares81,000
Max PriceHK$5.04
BuyHK$733,89816 Jan 19
Chi Fai Tang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares147,000
Max PriceHK$4.99
SellHK$4,974,66804 Jan 19
Gabriel Lee
EntityIndividual
Role
Member of the Board of Directors
COO & Executive Director
Shares989,000
Max PriceHK$5.03
BuyHK$4,974,66804 Jan 19
Gabriel Lee
EntityIndividual
Role
Member of the Board of Directors
COO & Executive Director
Shares989,000
Max PriceHK$5.03

Ownership Breakdown


Management Team

  • Chi Fai Tang (40yo)

    Chairman & CEO

    • Tenure: 3.9yrs
    • Compensation: HK$1.24m
  • Gabriel Lee (40yo)

    COO & Executive Director

    • Tenure: 3.9yrs
    • Compensation: HK$5.59m
  • Martin Law (52yo)

    Chief Financial Officer

    • Tenure: 1.2yrs
  • Raymond Siu (39yo)

    Company Secretary

    • Tenure: 2.1yrs

Board Members

  • Ching Nam Ma (66yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: HK$810.05k
  • David Wang (58yo)

    Non-Executive Director

    • Tenure: 1.2yrs
  • Ben Luk (39yo)

    Non Executive Director

    • Tenure: 4.1yrs
    • Compensation: HK$199.90k
  • Chi Fai Tang (40yo)

    Chairman & CEO

    • Tenure: 3.9yrs
    • Compensation: HK$1.24m
  • Gabriel Lee (40yo)

    COO & Executive Director

    • Tenure: 3.9yrs
    • Compensation: HK$5.59m
  • Andrew Look (55yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: HK$220.00k
  • Josekin Lam (40yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: HK$120.00k

Company Information

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


Key Information

  • Name: Union Medical Healthcare Limited
  • Ticker: 2138
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: HK$5.635b
  • Shares outstanding: 985.17m
  • 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

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. The group provides a range of service ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:55
End of Day Share Price2019/10/21 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.