LifeTech Scientific

SEHK:1302

Snowflake Description

Flawless balance sheet with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

1302

SEHK

HK$6B

Market Cap

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Last updated 2019/08/17 12:54

Company description

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1302 Share Price and Events

7 Day Returns

-2.9%

SEHK:1302

0.6%

HK Medical Equipment

-0.7%

HK Market

1 Year Returns

-30.4%

SEHK:1302

-6.4%

HK Medical Equipment

-9.8%

HK Market

1302 Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
LifeTech Scientific (1302)	-2.9%	-3.6%	-14.2%	-30.4%	-11.3%	-8.7%
HK Medical Equipment	0.6%	-2.4%	-5%	-6.4%	1.3%	-17.3%
HK Market	-0.7%	-9.3%	-8.4%	-9.8%	1.6%	-10.5%

1 Year Return vs Industry and Market

1302 underperformed the Medical Equipment industry which returned -6.4% over the past year.
1302 underperformed the Market in Hong Kong which returned -9.8% over the past year.

Price Volatility

1302

Industry

5yr Volatility vs Market

Related Companies

Sorry, no analysis for LifeTech Scientific's competitors could be found in our database.

Value

Is LifeTech Scientific undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Here we compare the current share price of LifeTech Scientific to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for LifeTech Scientific.

SEHK:1302 Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity
Levered Free Cash Flow	Extrapolated from most recent financials.	See below
Discount Rate (Cost of Equity)	See below	7.4%
Perpetual Growth Rate	10-Year HK Government Bond Rate	2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1302
Data Point	Calculation/ Source	Result
Risk-Free Rate	10-Year HK Govt Bond Rate	2%
Equity Risk Premium	S&P Global	6%
Medical Equipment Unlevered Beta	Simply Wall St/ S&P Global	0.86
Re-levered Beta	= Unlevered beta (1 + (1- tax rate) (Debt/Equity)) = 0.863 (1 + (1- 25%) (0.47%))	0.91
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	0.91
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 2% + (0.91 * 5.96%)	7.43%

Discounted Cash Flow Calculation for SEHK:1302 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for LifeTech Scientific is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

SEHK:1302 DCF 1st Stage: Next 10 year cash flow forecast
	Levered FCF (CNY, Millions)	Source	Present Value Discounted (@ 7.43%)
2020	24.40	Est @ -2.03%	22.72
2021	24.20	Est @ -0.82%	20.97
2022	24.21	Est @ 0.03%	19.53
2023	24.36	Est @ 0.62%	18.29
2024	24.61	Est @ 1.03%	17.20
2025	24.94	Est @ 1.32%	16.22
2026	25.32	Est @ 1.53%	15.33
2027	25.74	Est @ 1.67%	14.51
2028	26.20	Est @ 1.77%	13.75
2029	26.68	Est @ 1.84%	13.03
Present value of next 10 years cash flows			CN¥171.55

SEHK:1302 DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₉ × (1 + g) ÷ (Discount Rate – g) = CN¥26.68 × (1 + 2%) ÷ (7.43% – 2%)	CN¥501.60
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = CN¥501.60 ÷ (1 + 7.43%)¹⁰	CN¥245.00

SEHK:1302 Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = CN¥171.55 + CN¥245.00	CN¥416.55
Equity Value per Share (CNY)	= Total value / Shares Outstanding = CN¥416.55 / 4,319.77	CN¥0.1

SEHK:1302 Discount to Share Price
	Calculation	Result
Exchange Rate	CNY/HKD (Reporting currency to currency of SEHK:1302)	1.114
Value per Share (HKD)	= Value per Share in CNY x Exchange Rate (CNY/HKD) = CN¥0.1 x 1.114	HK$0.11
Value per share (HKD)	From above.	HK$0.11
Current discount	Discount to share price of HK$1.33 = -1 x (HK$1.33 - HK$0.11) / HK$0.11	-1138.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

The current share price of LifeTech Scientific is above its future cash flow value.

Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for LifeTech Scientific's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are LifeTech Scientific's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

SEHK:1302 PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2018-12-31) in CNY	CN¥0.03
SEHK:1302 Share Price **	SEHK (2019-08-16) in HKD	HK$1.33
SEHK:1302 Share Price converted to CNY reporting currency	Exchange rate (HKD/ CNY) 0.898	CN¥1.19
Hong Kong Medical Equipment Industry PE Ratio	Median Figure of 13 Publicly-Listed Medical Equipment Companies	14.68x
Hong Kong Market PE Ratio	Median Figure of 1,500 Publicly-Listed Companies	9.66x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of LifeTech Scientific.

SEHK:1302 PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= SEHK:1302 Share Price ÷ EPS (both in CNY) = 1.19 ÷ 0.03	42.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

LifeTech Scientific is overvalued based on earnings compared to the HK Medical Equipment industry average.
LifeTech Scientific is overvalued based on earnings compared to the Hong Kong market.

Price based on expected Growth

Does LifeTech Scientific's expected growth come at a high price?

Raw Data

SEHK:1302 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	42.75x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts	Not available
Hong Kong Medical Equipment Industry PEG Ratio	Median Figure of 5 Publicly-Listed Medical Equipment Companies	1.26x
Hong Kong Market PEG Ratio	Median Figure of 486 Publicly-Listed Companies	0.74x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Unable to calculate PEG ratio for LifeTech Scientific, we can't assess if its growth is good value.

Price based on value of assets

What value do investors place on LifeTech Scientific's assets?

Raw Data

SEHK:1302 PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2018-12-31) in CNY	CN¥0.29
SEHK:1302 Share Price *	SEHK (2019-08-16) in HKD	HK$1.33
SEHK:1302 Share Price converted to CNY reporting currency	Exchange rate (HKD/ CNY) 0.898	CN¥1.19
Hong Kong Medical Equipment Industry PB Ratio	Median Figure of 17 Publicly-Listed Medical Equipment Companies	1.06x
Hong Kong Market PB Ratio	Median Figure of 2,186 Publicly-Listed Companies	0.84x

SEHK:1302 PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= SEHK:1302 Share Price ÷ Book Value per Share (both in CNY) = 1.19 ÷ 0.29	4.17x

* Primary Listing of LifeTech Scientific.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

LifeTech Scientific is overvalued based on assets compared to the HK Medical Equipment industry average.

Value checks

We assess LifeTech Scientific's value by looking at:

Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
Is the PE ratio less than the market average, and/ or less than the Medical Equipment industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Medical Equipment industry average (and greater than 0)? (1 check)

Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

How is LifeTech Scientific expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as LifeTech Scientific has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!

19.5%

Expected Medical Equipment industry annual growth in earnings.

Earnings growth vs Low Risk Savings

Is LifeTech Scientific expected to grow at an attractive rate?

Unable to compare LifeTech Scientific's earnings growth to the low risk savings rate as no estimate data is available.

Growth vs Market Checks

Unable to compare LifeTech Scientific's earnings growth to the Hong Kong market average as no estimate data is available.
Unable to compare LifeTech Scientific's revenue growth to the Hong Kong market average as no estimate data is available.

Annual Growth Rates Comparison

Raw Data

SEHK:1302 Future Growth Rates Data Sources
Data Point	Source	Value (per year)
Hong Kong Medical Equipment Industry Earnings Growth Rate	Market Cap Weighted Average	19.5%
Hong Kong Medical Equipment Industry Revenue Growth Rate	Market Cap Weighted Average	14.2%
Hong Kong Market Earnings Growth Rate	Market Cap Weighted Average	11.7%
Hong Kong Market Revenue Growth Rate	Market Cap Weighted Average	10.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations

Raw Data

SEHK:1302 Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (7 months ago)	See Below
Future Estimates	Average of up to 0 Analyst Estimates (S&P Global)	See Below

All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1302 Future Estimates Data
Date (Data in CNY Millions)	Revenue	Cash Flow	Net Income *	Avg. No. Analysts

SEHK:1302 Past Financials Data
Date (Data in CNY Millions)	Revenue	Cash Flow	Net Income *
2018-12-31	557	182	121
2018-09-30	518	190	134
2018-06-30	480	199	147
2018-03-31	445	177	155
2017-12-31	409	155	163
2017-09-30	391	146	171
2017-06-30	373	136	178
2017-03-31	363	132	162
2016-12-31	353	127	146
2016-09-30	336	121	201
2016-06-30	319	115	256
2016-03-31	315	130	129

*GAAP earnings excluding extraordinary items.

High Growth Checks

Unable to determine if LifeTech Scientific is high growth as no earnings estimate data is available.
Unable to determine if LifeTech Scientific is high growth as no revenue estimate data is available.

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.

Raw Data

SEHK:1302 Past and Future Earnings per Share
Data Point	Source	Value
Past Financials	Company Filings (7 months ago)	See Below
Future Estimates	Average of up to 0 Analyst Estimates (S&P Global)	See Below

All data from LifeTech Scientific Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1302 Future Estimates Data
Date (Data in CNY Millions)	EPS *	EPS High Estimate	EPS Low Estimate	Avg. No. Analysts

SEHK:1302 Past Financials Data
Date (Data in CNY Millions)	EPS *
2018-12-31	0.03
2018-09-30	0.03
2018-06-30	0.03
2018-03-31	0.04
2017-12-31	0.04
2017-09-30	0.04
2017-06-30	0.04
2017-03-31	0.04
2016-12-31	0.04
2016-09-30	0.05
2016-06-30	0.06
2016-03-31	0.03

*GAAP earnings excluding extraordinary items.

Performance in 3 years

In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.

Unable to establish if LifeTech Scientific will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

Examine LifeTech Scientific's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
LifeTech Scientific's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Healthcare companies here
LifeTech Scientific's competitive advantages and company strategy can generally be found in its financial reports archived here.
Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide

Future performance checks

We assess LifeTech Scientific's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)

Some of the above checks will fail if the company is expected to be loss making in the relevant year.
LifeTech Scientific has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

How has LifeTech Scientific performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.

Past earnings growth

Below we compare LifeTech Scientific's growth in the last year to its industry (Medical Equipment).

Past Earnings growth analysis

We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.

LifeTech Scientific has delivered over 20% year on year earnings growth in the past 5 years.
LifeTech Scientific's 1-year earnings growth is negative, it can't be compared to the 5-year average.
LifeTech Scientific's 1-year earnings growth is negative, it can't be compared to the HK Medical Equipment industry average.

Earnings and Revenue History

LifeTech Scientific's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.

Raw Data

All data from LifeTech Scientific Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1302 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions)	Revenue	Net Income *	G+A Expenses	R&D Expenses
2018-12-31	556.70	121.08	226.40	115.20
2018-09-30	518.40	133.84	195.67	95.65
2018-06-30	480.11	146.60	164.93	76.10
2018-03-31	444.62	155.03	151.33	69.15
2017-12-31	409.13	163.47	137.72	62.20
2017-09-30	390.82	170.73	138.34	60.60
2017-06-30	372.52	177.99	138.96	59.00
2017-03-31	362.69	161.82	136.08	58.26
2016-12-31	352.85	145.65	133.20	57.53
2016-09-30	335.77	201.03	125.93	54.69
2016-06-30	318.69	256.40	118.67	51.86
2016-03-31	315.15	129.38	119.92	49.54
2015-12-31	311.61	2.36	121.17	47.22
2015-09-30	303.86	-40.91	123.26	42.45
2015-06-30	296.12	-84.18	125.36	37.68
2015-03-31	289.40	-82.71	135.06	35.49
2014-12-31	282.68	-81.24	144.75	33.31
2014-09-30	279.72	-151.26	150.77	34.93
2014-06-30	258.05	-208.86	138.93	34.00
2014-03-31	248.30	-88.96	130.42	33.29
2013-12-31	231.04	-65.67	115.34	31.04
2013-09-30	209.02	-53.20	101.47	27.06
2013-06-30	201.28	-45.55	94.83	24.41
2013-03-31	189.60	-54.44	83.95	23.26
2012-12-31	181.48	32.35	79.12	23.61
2012-09-30	172.23	30.41	71.08	25.18

*GAAP earnings excluding extraordinary items.

Performance last year

We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.

LifeTech Scientific has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
LifeTech Scientific used its assets more efficiently than the HK Medical Equipment industry average last year based on Return on Assets.
LifeTech Scientific's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

Past performance checks

We assess LifeTech Scientific's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Medical Equipment industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
LifeTech Scientific has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

How is LifeTech Scientific's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up LifeTech Scientific's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

LifeTech Scientific is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
LifeTech Scientific's cash and other short term assets cover its long term commitments.

Balance sheet

This treemap shows a more detailed breakdown of LifeTech Scientific's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

High level of physical assets or inventory.
Debt is covered by short term assets, assets are 24.1x debt.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.

Raw Data

All data from LifeTech Scientific Company Filings, last reported 7 months ago.

SEHK:1302 Past Debt and Equity Data
Date (Data in CNY Millions)	Total Equity	Total Debt	Cash & Short Term Investments
2018-12-31	1,243.89	24.02	357.58
2018-09-30	1,243.89	24.02	357.58
2018-06-30	1,151.74	0.00	301.34
2018-03-31	1,151.74	0.00	301.34
2017-12-31	1,055.97	0.00	451.93
2017-09-30	1,055.97	0.00	451.93
2017-06-30	966.45	200.00	592.94
2017-03-31	966.45	200.00	592.94
2016-12-31	870.60	200.00	645.21
2016-09-30	870.60	200.00	645.21
2016-06-30	249.76	307.33	367.02
2016-03-31	249.76	307.33	367.02
2015-12-31	180.27	145.24	255.11
2015-09-30	180.27	145.24	255.11
2015-06-30	-37.43	84.90	271.16
2015-03-31	-37.43	84.90	271.16
2014-12-31	156.31	78.48	265.76
2014-09-30	156.31	78.48	265.76
2014-06-30	36.87	73.27	230.58
2014-03-31	36.87	73.27	230.58
2013-12-31	236.05	67.06	231.97
2013-09-30
2013-06-30	245.36	98.04	273.88
2013-03-31	300.81	0.00	202.69
2012-12-31	300.81	0.00	202.69
2012-09-30

LifeTech Scientific's level of debt (1.9%) compared to net worth is satisfactory (less than 40%).
The level of debt compared to net worth has been reduced over the past 5 years (28.7% vs 1.9% today).
Debt is well covered by operating cash flow (758.9%, greater than 20% of total debt).
LifeTech Scientific earns more interest than it pays, coverage of interest payments is not a concern.

Show me more healthy companies in the Medical Equipment industry

Financial health checks

We assess LifeTech Scientific's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)

Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.

Annual Dividend Income

Current annual income from LifeTech Scientific dividends.

If you bought HK$2,000 of LifeTech Scientific shares you are expected to receive HK$0 in your first year as a dividend.

Dividend Amount

Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?

Unable to evaluate LifeTech Scientific's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
Unable to evaluate LifeTech Scientific's dividend against the top 25% market benchmark as the company has not reported any payouts.

Annualized Historical and Future Dividends

It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.

Raw Data

SEHK:1302 Annualized Past and Future Dividends
Data Point	Source	Value
Past Annualized Dividend Yield	S&P Global Market Data	See Below
Past Dividends per Share	Company Filings/ Annualized Dividend Payments	See Below
Future Dividends per Share Estimates	Average of up to 0 Analyst Estimates (S&P Global)	See Below
Hong Kong Medical Equipment Industry Average Dividend Yield	Market Cap Weighted Average of 9 Stocks	1.4%
Hong Kong Market Average Dividend Yield	Market Cap Weighted Average of 978 Stocks	3.9%
Hong Kong Minimum Threshold Dividend Yield	10th Percentile	1.3%
Hong Kong Bottom 25% Dividend Yield	25th Percentile	2.3%
Hong Kong Top 25% Dividend Yield	75th Percentile	6.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1302 Future Dividends Estimate Data
Date (Data in CN¥)	Dividend per Share (annual)	Avg. No. Analysts

SEHK:1302 Past Annualized Dividends Data
Date (Data in CN¥)	Dividend per share (annual)	Avg. Yield (%)
2013-11-14	0.000	0.000
2013-08-09	0.000	0.000
2013-05-13	0.000	0.000
2013-03-26	0.000	0.000
2013-03-25	0.000	0.000
2012-11-14	0.000	0.000
2012-03-28	0.006	1.532
2011-11-14	0.006	2.627

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Unable to perform a dividend volatility check as LifeTech Scientific has not reported any payouts.
Unable to verify if LifeTech Scientific's dividend has been increasing as the company has not reported any payouts.

Current Payout to shareholders

What portion of LifeTech Scientific's earnings are paid to the shareholders as a dividend.

Unable to calculate sustainability of dividends as LifeTech Scientific has not reported any payouts.

Future Payout to shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.

Income/ dividend checks

We assess LifeTech Scientific's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can LifeTech Scientific afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

Full details on the Dividends part of the Simply Wall St company analysis model.

Management

What is the CEO of LifeTech Scientific's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.

CEO

Yuehui Xie

COMPENSATION	CN¥13,854,000
AGE	50
TENURE AS CEO	4.4 years

CEO Bio

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 Corporation. He served as the Project Manager of Eastern Tantalum Group from 1991 to 1993. He has over 20 years of experience in business management in the PRC, of which over 10 years in medical device industry. From June 1993 to January 1994, he served as the Investment Manager at a subsidiary of China Southern Securities and was responsible for project investment. From February 1994 to February 1996, he served as the Deputy General Manager at an investment branch of Bank of China, Jilin Province and was responsible for [managing investment projects involving futures]. From February 1996 to December 1998, Mr. Xie served as the Manager at the domestic trade department of Shenzhen Huihua Group and was responsible for overall trade management. Since June 1998, he served as General Manager at Shenzhen Huishibang Technology Company Limited and served as its Chairman since 2000. During this time, he was responsible for overall business management. He serves as the Chairman of LifeTech Scientific Corporation. He has been the Chairman of Lifetech Scientific (Shenzhen) Co., Ltd. since 2005 and it’s Director since October 2000. He has been an Executive Director of LifeTech Scientific Corporation since October 22, 2011. He graduated from Kunming Institute of Technology in July 1991 with a Bachelor's degree in Materials specialising in pressurized processing of metals. Mr. Xie also obtained a Master's degree in Business Administration from Tsinghua University in July 2006.

CEO Compensation

Yuehui's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Yuehui's remuneration is higher than average for companies of similar size in Hong Kong.

Management Team

Yuehui Xie

TITLE

Chairman of the Board & CEO

COMPENSATION

CN¥14M

AGE

50

TENURE

4.4 yrs

Jianxiong Liu

TITLE

CFO, VP

COMPENSATION

CN¥11M

AGE

48

TENURE

4.4 yrs

Jerry Zhu

TITLE

Investor Relations Manager

Board of Directors Tenure

Average tenure and age of the LifeTech Scientific board of directors in years:

5.3

Average Tenure

Average Age

The tenure for the LifeTech Scientific board of directors is about average.

Recent Insider Trading

No 3 month open market individual insider trading information.

Recent Insider Transactions

Announced	Type	Name	Entity	Start	End	Shares	Max Price (HK$)	Value (HK$)
02. Jul 19	Buy	Bank Of Communications, Asset Management Arm	Company	26. Jun 19	26. Jun 19	430,000	HK$1.39	HK$596,410
03. Jun 19	Buy	Bank Of Communications, Asset Management Arm	Company	29. May 19	29. May 19	300,000,000	HK$1.23	HK$368,999,841
03. Jun 19	Sell	Synergy Summit Limited	Company	29. May 19	29. May 19	-300,000,000	HK$1.23	HK$-368,999,841
12. Feb 19	Sell	Synergy Summit Limited	Company	28. Dec 18	28. Dec 18	-50,000,000	HK$1.35	HK$-67,499,829

Management checks

We assess LifeTech Scientific's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Like LifeTech Scientific Corporation’s (HKG:1302) High Return On Capital Employed?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … Analysts use this formula to calculate return on capital employed:

Simply Wall St - 7 months ago – Full article

Should You Be Impressed By LifeTech Scientific Corporation's (HKG:1302) ROE?

We'll use ROE to examine LifeTech Scientific Corporation (HKG:1302), by way of a worked example. … Over the last twelve months LifeTech Scientific has recorded a ROE of 13%. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St - 9 months ago – Full article

Understanding Your Return On Investment In LifeTech Scientific Corporation (HKG:1302)

and want to begin learning the link between LifeTech Scientific Corporation (HKG:1302)’s return fundamentals and stock market performance. … Therefore, looking at how efficiently LifeTech Scientific is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St - 11 months ago – Full article

At CN¥2.08, Is LifeTech Scientific Corporation (HKG:1302) A Buy?

saw significant share price volatility over the past couple of months on the SEHK, rising to the highs of HK$3.05 and falling to the lows of HK$2.08. … A question to answer is whether LifeTech Scientific's current trading price of HK$2.08 reflective of the actual value of the? … Let’s take a look at LifeTech Scientific’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change