SEHK:1612

Stock Analysis Report

Vincent Medical Holdings

Executive Summary

Vincent Medical Holdings Limited, an investment holding company, researches, develops, manufactures, markets, and sells medical devices.


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1612 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

1612

1.7%

HK Medical Equipment

-0.6%

HK Market


1 Year Return

-7.1%

1612

47.9%

HK Medical Equipment

-7.4%

HK Market

Return vs Industry: 1612 underperformed the Hong Kong Medical Equipment industry which returned 47.9% over the past year.

Return vs Market: 1612 matched the Hong Kong Market which returned -7.4% over the past year.


Shareholder returns

1612IndustryMarket
7 Day0%1.7%-0.6%
30 Day8.3%2.7%-3.2%
90 Day6.6%16.4%3.1%
1 Year-4.8%-7.1%49.4%47.9%-4.1%-7.4%
3 Year-31.4%-35.6%51.9%47.1%13.5%2.0%
5 Yearn/a47.6%39.6%13.8%-5.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

30.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1612 (HK$0.65) is trading below our estimate of fair value (HK$0.93)

Significantly Below Fair Value: 1612 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1612 is good value based on its PE Ratio (13.1x) compared to the Medical Equipment industry average (17.9x).

PE vs Market: 1612 is poor value based on its PE Ratio (13.1x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1612's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1612 is good value based on its PB Ratio (1.1x) compared to the HK Medical Equipment industry average (2.6x).


Next Steps

Future Growth

How is Vincent Medical Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

29.0%

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 Vincent Medical Holdings 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 Vincent Medical Holdings performed over the past 5 years?

-20.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1612 has high quality earnings.

Growing Profit Margin: 1612's current net profit margins (6.2%) are higher than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: 1612's earnings have declined by -20% per year over the past 5 years.

Accelerating Growth: 1612's earnings growth over the past year (131.5%) exceeds its 5-year average (-20% per year).

Earnings vs Industry: 1612 earnings growth over the past year (131.5%) exceeded the Medical Equipment industry 43.4%.


Return on Equity

High ROE: 1612's Return on Equity (8.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vincent Medical Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1612's short term assets (HK$353.3M) exceed its short term liabilities (HK$112.7M).

Long Term Liabilities: 1612's short term assets (HK$353.3M) exceed its long term liabilities (HK$20.9M).


Debt to Equity History and Analysis

Debt Level: 1612's debt to equity ratio (3.7%) is considered satisfactory.

Reducing Debt: 1612's debt to equity ratio has increased from 0.8% to 3.7% over the past 5 years.

Debt Coverage: 1612's debt is well covered by operating cash flow (304.1%).

Interest Coverage: 1612's interest payments on its debt are well covered by EBIT (28.4x coverage).


Balance Sheet

Inventory Level: 1612 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1612's debt is covered by short term assets (assets are 21.7x debt).


Next Steps

Dividend

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

2.46%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%2.3%markettop25%6.3%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1612's dividend (2.46%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 1612's dividend (2.46%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1612 has been paying a dividend for less than 10 years.

Growing Dividend: 1612's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.2%), 1612's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.7yrs

Average board tenure


CEO

Ki To (52yo)

HK$1,546,000

Compensation

Mr. Ki Cheung To serves as Chief Executive Officer and General Manager at Vincent Medical Holdings Limited and has been its Executive Director November 2015. Mr. To is primarily responsible for overseeing  ...


CEO Compensation Analysis

Compensation vs Market: Ki's total compensation ($USD198.52K) is about average for companies of similar size in the Hong Kong market ($USD225.23K).

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


Board Members

NamePositionTenureCompensationOwnership
Man Choi
Chairman & Executive Director0yrsHK$1.25m0.47% HK$2.0m
Ki To
CEO, GM & Executive Director0yrsHK$1.55m2.67% HK$11.0m
Ming Koh
Assistant GM & Executive Director3.9yrsHK$1.26m0.77% HK$3.2m
Kwok Fu
Engineering Manager & Executive Director3.9yrsHK$1.08m0.77% HK$3.2m
Yu Chiu Au
Independent Non-Executive Director3.7yrsHK$189.00kno data
Kwok Mok
Independent Non-Executive Director3.7yrsHK$189.00kno data
Pengcheng Guo
Non-Executive Director3yrsHK$189.00kno data
Kai Yung
Independent Non-Executive Director3yrsHK$189.00k0.19% HK$780.0k

3.7yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 1612's board of directors are considered experienced (3.7 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

Vincent Medical Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vincent Medical Holdings Limited
  • Ticker: 1612
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: HK$414.473m
  • Shares outstanding: 637.65m
  • Website: https://www.vincentmedical.com

Number of Employees


Location

  • Vincent Medical Holdings Limited
  • Hang Fung Industrial Building
  • Flat B2, 7th Floor, Phase 2
  • Hung Hom
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1612SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2016

Biography

Vincent Medical Holdings Limited, an investment holding company, researches, develops, manufactures, markets, and sells medical devices. It operates in two segments, Original Equipment Manufacturing (OEM) and Original Brand Manufacturing. The company develops medical devices focusing on respiratory products; imaging contrast media power injector disposables; and orthopedic and rehabilitation products for OEM customers. Its respiratory products portfolio includes humidification systems, nCPAP interface systems, respiratory units, electronic air-oxygen blenders, and anesthesia systems. The company’s orthopedic and rehabilitation products comprise various adjustable rehabilitation braces for support and protection, and rehabilitation of various skeletomuscular parts after injury or surgery. It also develops robotic hand training devices. Vincent Medical Holdings Limited sells its products under the Inspired Medical, Hand of Hope, and Hypnus brand names in the People’s Republic of China, the United States, the Netherlands, Australia, Japan, and internationally. The company was founded in 1997 and is headquartered in Hung Hom, Hong Kong. Vincent Medical Holdings Limited is a subsidiary of Vincent Raya International Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 13:25
End of Day Share Price2020/02/21 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.