SEHK:1302

Stock Analysis Report

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Executive Summary

LifeTech Scientific Corporation, an investment holding company, develops, manufactures, and trades in interventional medical devices for cardiovascular and peripheral vascular diseases and disorders.


Snowflake Analysis

Flawless balance sheet with limited growth.

Share Price & News

How has LifeTech Scientific's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1302's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.4%

1302

2.8%

HK Medical Equipment

2.3%

HK Market


1 Year Return

62.6%

1302

235.1%

HK Medical Equipment

6.9%

HK Market

Return vs Industry: 1302 underperformed the Hong Kong Medical Equipment industry which returned 222.6% over the past year.

Return vs Market: 1302 exceeded the Hong Kong Market which returned 6% over the past year.


Shareholder returns

1302IndustryMarket
7 Day0.4%2.8%2.3%
30 Day-9.2%6.9%-2.2%
90 Day26.3%56.7%10.6%
1 Year62.6%62.6%237.2%235.1%11.3%6.9%
3 Year34.5%34.5%208.6%200.0%1.8%-9.1%
5 Year51.7%51.7%312.5%293.3%14.3%-4.8%

Price Volatility Vs. Market

How volatile is LifeTech Scientific's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is LifeTech Scientific undervalued compared to its fair value and its price relative to the market?

65.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1302 (HK$2.26) is trading above our estimate of fair value (HK$2.14)

Significantly Below Fair Value: 1302 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1302 is poor value based on its PE Ratio (65.2x) compared to the HK Medical Equipment industry average (50.8x).

PE vs Market: 1302 is poor value based on its PE Ratio (65.2x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: 1302 is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: 1302 is overvalued based on its PB Ratio (7.6x) compared to the HK Medical Equipment industry average (4.1x).


Next Steps

Future Growth

How is LifeTech Scientific forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1302's forecast earnings growth (15.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 1302's earnings (15.7% per year) are forecast to grow slower than the Hong Kong market (18.2% per year).

High Growth Earnings: 1302's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1302's revenue (19.9% per year) is forecast to grow faster than the Hong Kong market (11.3% per year).

High Growth Revenue: 1302's revenue (19.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1302's Return on Equity is forecast to be low in 3 years time (14%).


Next Steps

Past Performance

How has LifeTech Scientific performed over the past 5 years?

28.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1302 has high quality earnings.

Growing Profit Margin: 1302's current net profit margins (19.3%) are lower than last year (21.8%).


Past Earnings Growth Analysis

Earnings Trend: 1302 has become profitable over the past 5 years, growing earnings by 28.7% per year.

Accelerating Growth: 1302's earnings growth over the past year (6.7%) is below its 5-year average (28.7% per year).

Earnings vs Industry: 1302 earnings growth over the past year (6.7%) underperformed the Medical Equipment industry 16%.


Return on Equity

High ROE: 1302's Return on Equity (10.9%) is considered low.


Next Steps

Financial Health

How is LifeTech Scientific's financial position?


Financial Position Analysis

Short Term Liabilities: 1302's short term assets (CN¥605.8M) exceed its short term liabilities (CN¥341.2M).

Long Term Liabilities: 1302's short term assets (CN¥605.8M) exceed its long term liabilities (CN¥269.3M).


Debt to Equity History and Analysis

Debt Level: 1302's debt to equity ratio (28.4%) is considered satisfactory.

Reducing Debt: 1302's debt to equity ratio has reduced from 51% to 28.4% over the past 5 years.

Debt Coverage: 1302's debt is well covered by operating cash flow (83.3%).

Interest Coverage: 1302's interest payments on its debt are well covered by EBIT (10.3x coverage).


Balance Sheet


Next Steps

Dividend

What is LifeTech Scientific current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1302's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1302'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 1302's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1302's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1302 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 1302's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

5.9yrs

Average board tenure


CEO

Yuehui Xie (51 yo)

5.42yrs

Tenure

CN¥16,254,000

Compensation

Mr. Yuehui Xie has been the Chief Executive Officer at LifeTech Scientific Corporation since March 2, 2015. Mr. Xie is responsible for overall strategic planning and management of LifeTech Scientific Corpo ...


CEO Compensation Analysis

Compensation vs Market: Yuehui's total compensation ($USD2.33M) is above average for companies of similar size in the Hong Kong market ($USD565.26K).

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


Board Members

NamePositionTenureCompensationOwnership
Yuehui Xie
Chairman & CEO5.42yrsCN¥16.25m18.07%
CN¥ 1.8b
Jianxiong Liu
CFO, Executive VP5.42yrsCN¥12.99m0.19%
CN¥ 18.2m
Hsien Tse Liang
Independent Non-Executive Director8.83yrsCN¥108.00kno data
Luming Zhou
Independent Non-Executive Director6.33yrsCN¥108.00kno data
Feng Jiang
Non-Executive Director6.33yrsCN¥108.00kno data
Wansong Wang
Independent Non-Executive Director4.58yrsCN¥108.00kno data
Feng Fu
Non-Executive Director1yrno datano data

5.9yrs

Average Tenure

51yo

Average Age

Experienced Board: 1302's board of directors are considered experienced (5.9 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.


Top Shareholders

Company Information

LifeTech Scientific Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LifeTech Scientific Corporation
  • Ticker: 1302
  • Exchange: SEHK
  • Founded: 1999
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: HK$9.690b
  • Shares outstanding: 4.33b
  • Website: https://www.lifetechmed.com

Number of Employees


Location

  • LifeTech Scientific Corporation
  • Cybio Electronic Building
  • Langshan 2nd Street
  • Shenzhen
  • Guangdong Province
  • 518057
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1302SEHK (The Stock Exchange of Hong Kong Ltd.)YesCommon SharesHKHKDNov 2011
1302SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesCommon SharesHKHKDNov 2011

Biography

LifeTech Scientific Corporation, an investment holding company, develops, manufactures, and trades in interventional medical devices for cardiovascular and peripheral vascular diseases and disorders. The c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/05 13:08
End of Day Share Price2020/08/05 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.