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.

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

1518

-4.9%

HK Healthcare

-4.2%

HK Market


1 Year Return

-56.9%

1518

-28.9%

HK Healthcare

-2.6%

HK Market

Return vs Industry: 1518 underperformed the Hong Kong Healthcare industry which returned -28.9% over the past year.

Return vs Market: 1518 underperformed the Hong Kong Market which returned -2.6% over the past year.


Shareholder returns

1518IndustryMarket
7 Day0.4%-4.9%-4.2%
30 Day-1.4%-0.7%-0.9%
90 Day-6.4%3.8%1.7%
1 Year-56.9%-56.9%-27.4%-28.9%0.9%-2.6%
3 Yearn/a-28.8%-33.1%19.6%7.6%
5 Yearn/a-31.6%-37.4%18.6%-1.0%

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?

198.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1518 (HK$2.8) is trading above our estimate of fair value (HK$1.2)

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 (198.5x) compared to the Healthcare industry average (15.9x).

PE vs Market: 1518 is poor value based on its PE Ratio (198.5x) 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 (1x) 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?

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1518's forecast earnings growth (20.5% per year) is above the savings rate (2%).

Earnings vs Market: 1518's earnings (20.5% per year) are forecast to grow faster than the Hong Kong market (11.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if 1518's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1518's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 1518's Return on Equity is forecast to be high in 3 years time


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 (7.2%).


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) exceeds its short term liabilities (CN¥290.3M)

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

What is the CEO of New Century Healthcare Holding's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Zhou Jason (54yo)

4.3yrs

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 ($USD290.10K) is about average for companies of similar size in the Hong Kong market ($USD289.95K).

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


Management Age and Tenure

3.6yrs

Average Tenure

48yo

Average Age

Experienced Management: 1518's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

2.9yrs

Average Tenure

47yo

Average Age

Experienced Board: 1518's board of directors are not considered experienced ( 2.9 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

BuyCN¥13,62010 Dec 18
Zhou Jason
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares2,000
Max PriceCN¥6.81
BuyCN¥60,89510 Dec 18
Zhou Jason
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares9,500
Max PriceCN¥6.41
BuyCN¥26,48010 Dec 18
Zhou Jason
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares4,000
Max PriceCN¥6.62
BuyCN¥32,75010 Dec 18
Zhou Jason
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares5,000
Max PriceCN¥6.55
BuyCN¥13,16010 Dec 18
Zhou Jason
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares2,000
Max PriceCN¥6.58
BuyCN¥36,19010 Dec 18
Zhou Jason
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares5,500
Max PriceCN¥6.58
BuyCN¥67,20010 Dec 18
Zhou Jason
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,000
Max PriceCN¥6.72
BuyCN¥23,73010 Dec 18
Zhou Jason
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares3,500
Max PriceCN¥6.78
BuyCN¥13,46029 Nov 18
Zhou Jason
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares2,000
Max PriceCN¥6.73
BuyCN¥27,44029 Nov 18
Zhou Jason
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares4,000
Max PriceCN¥6.86
BuyCN¥133,80029 Nov 18
Zhou Jason
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares20,000
Max PriceCN¥6.69
BuyCN¥13,42029 Nov 18
Zhou Jason
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares2,000
Max PriceCN¥6.71
BuyCN¥20,16029 Nov 18
Zhou Jason
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares3,000
Max PriceCN¥6.72
BuyCN¥33,40022 Nov 18
Zhou Jason
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares5,000
Max PriceCN¥6.68
BuyCN¥106,88022 Nov 18
Zhou Jason
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares16,000
Max PriceCN¥6.68
BuyCN¥120,62022 Nov 18
Zhou Jason
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares18,500
Max PriceCN¥6.52

Ownership Breakdown

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


Management Team

  • Zhou Jason (54yo)

    Chairman & CEO

    • Tenure: 4.3yrs
    • Compensation: CN¥2.03m
  • Hong Xin (49yo)

    COO, Senior VP & Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥2.11m
  • Han Xu (47yo)

    CFO, Senior VP & Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥2.11m
  • Hong Zhou (59yo)

    Chief Physician

    • Tenure: 0yrs
  • Xiaofeng Jia (39yo)

    VP, Investment Director & Joint Company Secretary

    • Tenure: 3.6yrs
  • Lan Teng (43yo)

    VP & Group Director of Human Resources

    • Tenure: 3.6yrs
  • Lai Shan So

    Joint Company Secretary

    • Tenure: 1.3yrs

Board Members

  • Adrian Cheng (39yo)

    Non-Executive Director

    • Tenure: 1.4yrs
  • Yanfu Jiang (74yo)

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: CN¥100.00k
  • Martin Sun (44yo)

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: CN¥100.00k
  • Siye Wang (37yo)

    Non-Executive Director

    • Tenure: 3.8yrs
  • Zhou Jason (54yo)

    Chairman & CEO

    • Tenure: 4.3yrs
    • Compensation: CN¥2.03m
  • Hong Xin (49yo)

    COO, Senior VP & Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥2.11m
  • Han Xu (47yo)

    CFO, Senior VP & Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥2.11m
  • Guanxiong Wu (47yo)

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: CN¥100.00k
  • Jing Ma (58yo)

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: CN¥100.00k
  • Qizhi Guo (46yo)

    Non-executive director

    • Tenure: 1.8yrs

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$1.372b
  • 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 indus ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 12:54
End of Day Share Price2019/11/15 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.