SEHK:1515

Stock Analysis Report

China Resources Medical Holdings

Executive Summary

China Resources Medical Holdings Company Limited, an investment holding company, provides general healthcare, and hospital management and consulting services in the People’s Republic of China.

Rewards

PE ratio (12.1x) is below the Healthcare industry average (15.2x)

Earnings are forecast to grow 10.44% per year

Earnings grew by 38.2% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has China Resources Medical Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1515 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

1515

1.0%

HK Healthcare

3.7%

HK Market


1 Year Return

-19.7%

1515

-19.6%

HK Healthcare

2.4%

HK Market

Return vs Industry: 1515 matched the Hong Kong Healthcare industry which returned -19.6% over the past year.

Return vs Market: 1515 underperformed the Hong Kong Market which returned 2.4% over the past year.


Shareholder returns

1515IndustryMarket
7 Day0.7%1.0%3.7%
30 Day-5.1%-2.9%4.2%
90 Day-14.0%-3.1%1.7%
1 Year-18.0%-19.7%-17.9%-19.6%6.0%2.4%
3 Year-57.0%-58.6%-23.3%-28.0%25.6%12.9%
5 Year-62.7%-64.7%-12.5%-20.4%23.2%2.5%

Price Volatility Vs. Market

How volatile is China Resources Medical Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Resources Medical Holdings undervalued compared to its fair value and its price relative to the market?

12.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1515 (HK$4.44) is trading above our estimate of fair value (HK$2.41)

Significantly Below Fair Value: 1515 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1515 is good value based on its PE Ratio (12.1x) compared to the Healthcare industry average (15.2x).

PE vs Market: 1515 is poor value based on its PE Ratio (12.1x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1515 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 1515 is good value based on its PB Ratio (0.9x) compared to the HK Healthcare industry average (1.4x).


Next Steps

Future Growth

How is China Resources Medical Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1515's forecast earnings growth (10.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 1515's earnings (10.4% per year) are forecast to grow slower than the Hong Kong market (11.6% per year).

High Growth Earnings: 1515's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1515's revenue (4.8% per year) is forecast to grow slower than the Hong Kong market (10.3% per year).

High Growth Revenue: 1515's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1515's Return on Equity is forecast to be low in 3 years time (7.5%).


Next Steps

Past Performance

How has China Resources Medical Holdings performed over the past 5 years?

4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1515 has high quality earnings.

Growing Profit Margin: 1515's current net profit margins (19.5%) are higher than last year (15.4%).


Past Earnings Growth Analysis

Earnings Trend: 1515 has become profitable over the past 5 years, growing earnings by 4.4% per year.

Accelerating Growth: 1515's earnings growth over the past year (38.2%) exceeds its 5-year average (4.4% per year).

Earnings vs Industry: 1515 earnings growth over the past year (38.2%) exceeded the Healthcare industry 9.5%.


Return on Equity

High ROE: 1515's Return on Equity (7.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Resources Medical Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1515's short term assets (CN¥2.8B) exceed its short term liabilities (CN¥1.3B).

Long Term Liabilities: 1515's short term assets (CN¥2.8B) exceed its long term liabilities (CN¥348.1M).


Debt to Equity History and Analysis

Debt Level: 1515's debt to equity ratio (8.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1515's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1515's debt is well covered by operating cash flow (48.4%).

Interest Coverage: 1515 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1515 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1515's debt is covered by short term assets (assets are 5.9x debt).


Next Steps

Dividend

What is China Resources Medical Holdings's current dividend yield, its reliability and sustainability?

2.65%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%2.2%markettop25%6.2%industryaverage2.6%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: 1515's dividend (2.65%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.22%).

High Dividend: 1515's dividend (2.65%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.17%).


Stability and Growth of Payments

Stable Dividend: 1515 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1515's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.1%), 1515's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1515's dividends in 3 years are forecast to be well covered by earnings (15.7% payout ratio).


Next Steps

Management

What is the CEO of China Resources Medical Holdings's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Libing Cheng (55yo)

1.3yrs

Tenure

CN¥5,352,000

Compensation

Mr. Libing Cheng serves as Vice President of Phoenix Healthcare Group Co. Ltd. Mr. Cheng served as an Executive General Manager at Phoenix Healthcare Group Co. Ltd. since March 2013. Mr. Cheng joined Phoen ...


CEO Compensation Analysis

Compensation vs Market: Libing's total compensation ($USD766.87K) is above average for companies of similar size in the Hong Kong market ($USD477.59K).

Compensation vs Earnings: Libing's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.2yrs

Average Tenure

46yo

Average Age

Experienced Management: 1515's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

54.5yo

Average Age

Experienced Board: 1515's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellHK$28,192,11514 Mar 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares5,201,500
Max PriceHK$5.42

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Qing Song (54yo)

    Vice Chairman

    • Tenure: 1.3yrs
  • Yuan Ren (46yo)

    CFO & Executive Director

    • Tenure: 2.2yrs
    • Compensation: CN¥2.24m
  • Zechang Xu (57yo)

    Executive General Manager

    • Tenure: 3yrs
    • Compensation: CN¥2.92m
  • Libing Cheng (55yo)

    CEO, President

    • Tenure: 1.3yrs
    • Compensation: CN¥5.35m
  • Yiu So (37yo)

    Company Secretary

    • Tenure: 1.4yrs
  • Yanjun Fu (39yo)

    Deputy GM & Executive Director

    • Tenure: 2.2yrs
    • Compensation: CN¥3.17m
  • Lin Du (39yo)

    Chief General Counsel & Board Secretary

    • Tenure: 0yrs

Board Members

  • Kathy Chiu (70yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥199.00k
  • Yuning Fu (62yo)

    Honorary Chairman

    • Tenure: 3.1yrs
  • Qing Song (54yo)

    Vice Chairman

    • Tenure: 1.3yrs
  • Yuan Ren (46yo)

    CFO & Executive Director

    • Tenure: 2.2yrs
    • Compensation: CN¥2.24m
  • Yan Wang (47yo)

    Non-Executive Director

    • Tenure: 3.1yrs
  • Kwok Kong Kwong (72yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: CN¥422.00k
  • Libing Cheng (55yo)

    CEO, President

    • Tenure: 1.3yrs
    • Compensation: CN¥5.35m
  • Felix Lee (37yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥240.00k
  • Yanjun Fu (39yo)

    Deputy GM & Executive Director

    • Tenure: 2.2yrs
    • Compensation: CN¥3.17m
  • Anthony Wu (64yo)

    Independent Chairman

    • Tenure: 1.3yrs
    • Compensation: CN¥358.00k

Company Information

China Resources Medical Holdings Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Resources Medical Holdings Company Limited
  • Ticker: 1515
  • Exchange: SEHK
  • Founded: 2007
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: HK$5.757b
  • Shares outstanding: 1.30b
  • Website: https://www.crmedical.hk

Number of Employees


Location

  • China Resources Medical Holdings Company Limited
  • E-825, No. 6 Taiping Street
  • Xicheng District
  • Beijing
  • 100050
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1515SEHK (The Stock Exchange of Hong Kong Ltd.)HKD0.00025HKHKDNo data
1515SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2013
1PHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2013
1515SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2013
1515SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2013

Biography

China Resources Medical Holdings Company Limited, an investment holding company, provides general healthcare, and hospital management and consulting services in the People’s Republic of China. The company  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 12:59
End of Day Share Price2019/12/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.