SEHK:1789

Stock Analysis Report

Executive Summary

AK Medical Holdings Limited, an investment holding company, designs, develops, produces, and markets orthopedic joint implants and related products under the AK Medical brand primarily in the People’s Republic of China.

Snowflake

Fundamentals

Exceptional growth potential with flawless balance sheet.

Risks

  • AK Medical Holdings has significant price volatility in the past 3 months.
  • AK Medical Holdings is covered by less than 3 analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.8%

SEHK:1789

0.6%

HK Medical Equipment

-0.6%

HK Market


1 Year Return

7.9%

SEHK:1789

-6.4%

HK Medical Equipment

-9.8%

HK Market

1789 outperformed the Medical Equipment industry which returned -6.4% over the past year.

1789 outperformed the Market in Hong Kong which returned -9.8% over the past year.


Share holder returns

1789IndustryMarket
7 Day3.8%0.6%-0.6%
30 Day5.2%-2.4%-8.8%
90 Day34.7%-5.0%-8.4%
1 Year8.9%7.9%-5.4%-6.4%-6.5%-9.8%
3 Yearn/a4.6%1.2%12.8%1.6%
5 Yearn/a-13.1%-17.5%7.2%-10.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is AK Medical Holdings undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

AK Medical Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

AK Medical Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

AK Medical Holdings is overvalued based on earnings compared to the HK Medical Equipment industry average.

AK Medical Holdings is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

AK Medical Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

AK Medical Holdings is overvalued based on assets compared to the HK Medical Equipment industry average.


Next Steps

Future Growth

How is AK Medical Holdings expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

26.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

AK Medical Holdings's revenue is expected to grow significantly at over 20% yearly.

AK Medical Holdings's earnings are expected to grow significantly at over 20% yearly.

AK Medical Holdings's revenue growth is expected to exceed the Hong Kong market average.

AK Medical Holdings's earnings growth is expected to exceed the Hong Kong market average.

AK Medical Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

AK Medical Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has AK Medical Holdings performed over the past 5 years?

23.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

AK Medical Holdings has delivered over 20% year on year earnings growth in the past 5 years.

AK Medical Holdings's 1-year earnings growth exceeds its 5-year average (37.5% vs 23.6%)

AK Medical Holdings's earnings growth has exceeded the HK Medical Equipment industry average in the past year (37.5% vs 19%).


Return on Equity

AK Medical Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

AK Medical Holdings used its assets more efficiently than the HK Medical Equipment industry average last year based on Return on Assets.


Return on Capital Employed

AK Medical Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is AK Medical Holdings's financial position?


Financial Position Analysis

AK Medical Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

AK Medical Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

AK Medical Holdings has no debt.

AK Medical Holdings has not taken on any debt in the past 5 years.

AK Medical Holdings has no debt, it does not need to be covered by operating cash flow.

AK Medical Holdings has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

AK Medical Holdings has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

1.71%

Expected Dividend Yield


Dividend Yield and Payments Analysis

AK Medical Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.29%).

AK Medical Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.26%).

AK Medical Holdings is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are stable.

AK Medical Holdings is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of AK Medical Holdings's dividends as it is not paying a notable one for Hong Kong.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Zhijiang Li (51yo)

CN¥1,375,000

Compensation

Mr. Zhijiang Li serves as Chairman and Chief Executive Officer at AK Medical Holdings Limited. Mr. Li is responsible for the overall strategic planning and development of at AK Medical Holdings Limited. Mr ...


CEO Compensation Analysis

Zhijiang's remuneration is lower than average for companies of similar size in Hong Kong.

Zhijiang's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

3.3yrs

Average Tenure

50.5yo

Average Age

The tenure for the AK Medical Holdings management team is about average.


Board Age and Tenure

3.3yrs

Average Tenure

51yo

Average Age

The tenure for the AK Medical Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyHK$2,020,48129 May 19
Apg Investments Asia Limited
EntityCompany
Shares574,000
Max PriceHK$3.52
SellHK$1,410,75014 Nov 18
Chaoyang Zhang
EntityIndividual
Role
Senior VP & Executive Director
Member of the Board of Directors
Shares270,000
Max PriceHK$5.23
SellHK$3,506,33014 Nov 18
Chaoyang Zhang
EntityIndividual
Role
Senior VP & Executive Director
Member of the Board of Directors
Shares668,000
Max PriceHK$5.25
SellHK$3,667,97314 Nov 18
Chaoyang Zhang
EntityIndividual
Role
Senior VP & Executive Director
Member of the Board of Directors
Shares676,000
Max PriceHK$5.43

Ownership Breakdown


Management Team

  • Rita Li (54yo)

    Joint Company Secretary

    • Tenure: 3.3yrs
  • Zhijiang Li (51yo)

    Chairman & CEO

    • Compensation: CN¥1.38m
  • Bin Zhang (51yo)

    Senior VP & Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥446.00k
  • Chaoyang Zhang (50yo)

    Senior VP & Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥1.16m
  • Xiaohong Zhao (41yo)

    CFO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥1.65m
  • Yu Han (36yo)

    Joint Company Secretary

    • Tenure: 3.3yrs
  • Weiping Zhang (68yo)

    Chief Engineer of Ak Medical Beijing

    • Tenure: 10.7yrs
  • Sun Hongbo (37yo)

    Head of Production Centre of AK Medical Beijing

    • Tenure: 2.7yrs

Board Members

  • David Wang (58yo)

    Non-Executive Director

    • Tenure: 3.5yrs
  • David Li (55yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥152.00k
  • Roy Kong (43yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥152.00k
  • Zhijiang Li (51yo)

    Chairman & CEO

    • Tenure: 3.3yrs
    • Compensation: CN¥1.38m
  • Gengting Dang (84yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥150.00k
  • Xiaohong Zhao (41yo)

    CFO & Executive Director

    • Tenure: 3.5yrs
    • Compensation: CN¥1.65m
  • Bin Zhang (51yo)

    Senior VP & Executive Director

    • Tenure: 4.1yrs
    • Compensation: CN¥446.00k
  • Chaoyang Zhang (50yo)

    Senior VP & Executive Director

    • Tenure: 4.1yrs
    • Compensation: CN¥1.16m
  • Wenming Li (45yo)

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥150.00k

Company Information

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


Key Information

  • Name: AK Medical Holdings Limited
  • Ticker: 1789
  • Exchange: SEHK
  • Founded: 2003
  • Industry: health care equipment
  • Sector: healthcare
  • Market Cap: HK$5.105b
  • Shares outstanding: 1.04b
  • Website: Click here

Number of Employees


Location

  • AK Medical Holdings Limited
  • XingYe Mansion
  • 2nd Floor
  • Beijing
  • 102200
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1789SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2017

Biography

AK Medical Holdings Limited, an investment holding company, designs, develops, produces, and markets orthopedic joint implants and related products under the AK Medical brand primarily in the People’s Repu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 13:01
End of Day Share Price2019/08/16 00:00
Earnings2018/12/31
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.