SEHK:1518

Stock Analysis Report

New Century Healthcare Holding

Executive Summary

New Century Healthcare Holding Co. Limited, an investment holding company, provides healthcare services to women and children in the People’s Republic of China.

Risk Analysis

Earnings have declined by -5.57% per year over past 5 years

Highly volatile share price over past 3 months

Profit margins (0.9%) are lower than last year (9.1%)



Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

How has New Century Healthcare Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1518's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.8%

1518

1.4%

HK Healthcare

0.6%

HK Market


1 Year Return

-71.3%

1518

-23.4%

HK Healthcare

-4.5%

HK Market

Return vs Industry: 1518 underperformed the Hong Kong Healthcare industry which returned -23.4% over the past year.

Return vs Market: 1518 underperformed the Hong Kong Market which returned -4.5% over the past year.


Shareholder returns

1518IndustryMarket
7 Day-3.8%1.4%0.6%
30 Day-34.2%-7.2%-5.2%
90 Day-38.4%-5.8%2.3%
1 Year-71.3%-71.3%-21.7%-23.4%-1.0%-4.5%
3 Year-75.9%-76.1%-28.2%-32.5%14.4%2.9%
5 Yearn/a-22.4%-28.8%15.5%-3.8%

Price Volatility Vs. Market

How volatile is New Century Healthcare Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is New Century Healthcare Holding undervalued compared to its fair value and its price relative to the market?

124.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1518 (HK$1.75) is trading above our estimate of fair value (HK$1)

Significantly Below Fair Value: 1518 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1518 is poor value based on its PE Ratio (124.8x) compared to the Healthcare industry average (16.6x).

PE vs Market: 1518 is poor value based on its PE Ratio (124.8x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1518's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1518 is good value based on its PB Ratio (0.6x) compared to the HK Healthcare industry average (1.5x).


Next Steps

Future Growth

How is New Century Healthcare Holding forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.0%

Forecasted Healthcare industry annual growth in earnings


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 New Century Healthcare Holding 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 SimplyWall St do have past financial data.


Next Steps

Past Performance

How has New Century Healthcare Holding performed over the past 5 years?

-5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1518 has high quality earnings.

Growing Profit Margin: 1518's current net profit margins (0.9%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: 1518's earnings have declined by -5.6% per year over the past 5 years.

Accelerating Growth: 1518's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1518 had negative earnings growth (-88.2%) over the past year, making it difficult to compare to the Healthcare industry average (10.4%).


Return on Equity

High ROE: 1518's Return on Equity (2.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is New Century Healthcare Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 1518's short term assets (CN¥601.0M) exceed its short term liabilities (CN¥290.3M).

Long Term Liabilities: 1518's short term assets (CN¥601.0M) exceed its long term liabilities (CN¥419.6M).


Debt to Equity History and Analysis

Debt Level: 1518 is debt free.

Reducing Debt: 1518 had no debt 5 years ago.

Debt Coverage: 1518 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1518 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1518 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1518's debt is not covered by short term assets (assets are -1.057292140488E+16x debt).


Next Steps

Dividend

What is New Century Healthcare Holding's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.4%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1518's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1518's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1518's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1518's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1518 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 1518'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?

3.8yrs

Average management tenure


CEO

Zhou Jason (54yo)

4.5yrs

Tenure

CN¥2,033,000

Compensation

Mr. Jason Zhou founded New Century Healthcare Holding Co Ltd. in 2002 and has been its Chairman and Chief Executive Officer since August 2015 and Executive Director since July 31, 2015. From April 2001 to  ...


CEO Compensation Analysis

Compensation vs Market: Zhou's total compensation ($USD290.54K) is about average for companies of similar size in the Hong Kong market ($USD225.70K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Zhou Jason
Chairman & CEO4.5yrsCN¥2.03m32.34% CN¥272.6m
Han Xu
CFO, Senior VP & Executive Director4yrsCN¥2.11m0.037% CN¥309.6k
Hong Xin
COO, Senior VP & Executive Director4yrsCN¥2.11m0.037% CN¥309.6k
Xiaofeng Jia
VP, Investment Director & Joint Company Secretary3.8yrsno datano data
Lan Teng
VP & Group Director of Human Resources3.8yrsno datano data
Hong Zhou
Chief Physician0yrsno datano data
Lai Shan So
Joint Company Secretary1.5yrsno datano data

3.8yrs

Average Tenure

48yo

Average Age

Experienced Management: 1518's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zhou Jason
Chairman & CEO4.5yrsCN¥2.03m32.34% CN¥272.6m
Han Xu
CFO, Senior VP & Executive Director4yrsCN¥2.11m0.037% CN¥309.6k
Hong Xin
COO, Senior VP & Executive Director4yrsCN¥2.11m0.037% CN¥309.6k
Chi-Kong Cheng
Non-Executive Director1.7yrsno datano data
Yanfu Jiang
Independent Non-Executive Director3.2yrsCN¥100.00kno data
Hongbin Sun
Independent Non-Executive Director3.2yrsCN¥100.00kno data
Siye Wang
Non-Executive Director4yrsno datano data
Guanxiong Wu
Independent Non-Executive Director3.2yrsCN¥100.00kno data
Jing Ma
Independent Non-Executive Director3.2yrsCN¥100.00kno data
Qizhi Guo
Non-executive director2.1yrsno datano data

3.2yrs

Average Tenure

47yo

Average Age

Experienced Board: 1518's board of directors are considered experienced (3.2 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.


Ownership Breakdown

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


Top Shareholders

Company Information

New Century Healthcare Holding Co. Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: New Century Healthcare Holding Co. Limited
  • Ticker: 1518
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: HK$842.843m
  • Shares outstanding: 490.03m
  • Website: https://www.ncich.com.cn

Number of Employees


Location

  • New Century Healthcare Holding Co. Limited
  • 56 Nanlishi Road
  • Xicheng District
  • Beijing
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1518SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2017

Biography

New Century Healthcare Holding Co. Limited, an investment holding company, provides healthcare services to women and children in the People’s Republic of China. The company operates in the healthcare industry specializing in pediatric, obstetric, and gynecologic services; and hospital consulting services. It operates six hospitals under the New Century Healthcare brand; and three clinics in Beijing. The company also offers marketing services; and operates canteens, and gift and groceries shops at its hospitals. New Century Healthcare Holding Co. Limited was founded in 2002 and is headquartered in Beijing, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 13:18
End of Day Share Price2020/02/19 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.