Reported Earnings • May 05
First quarter 2026 earnings released: EPS: CN¥0.16 (vs CN¥0.15 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.16 (up from CN¥0.15 in 1Q 2025). Revenue: CN¥217.0m (down 5.6% from 1Q 2025). Net income: CN¥61.7m (up 6.3% from 1Q 2025). Profit margin: 28% (up from 25% in 1Q 2025). The increase in margin was driven by lower expenses. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Medical Equipment industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has fallen by 18% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Apr 30
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to HK$10.56, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 21x in the Medical Equipment industry in Hong Kong. Total loss to shareholders of 39% over the past three years. New Risk • Apr 14
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 3.2% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Major Estimate Revision • Apr 08
Consensus revenue estimates fall by 13% The consensus outlook for revenues in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from CN¥1.44b to CN¥1.26b. EPS estimate fell from CN¥0.93 to CN¥0.89 per share. Net income forecast to grow 25% next year vs 24% growth forecast for Medical Equipment industry in Hong Kong. Consensus price target down from HK$22.24 to HK$20.60. Share price fell 5.5% to HK$13.07 over the past week. Reported Earnings • Mar 31
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CN¥0.71 (up from CN¥0.33 in FY 2024). Revenue: CN¥1.05b (up 30% from FY 2024). Net income: CN¥272.5m (up 118% from FY 2024). Profit margin: 26% (up from 16% in FY 2024). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 8.7%. Earnings per share (EPS) also missed analyst estimates by 4.1%. Revenue is forecast to grow 22% p.a. on average during the next 2 years, compared to a 24% growth forecast for the Medical Equipment industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 16% per year whereas the company’s share price has fallen by 11% per year. Announcement • Mar 31
Beijing Chunlizhengda Medical Instruments Co., Ltd., Annual General Meeting, May 26, 2026 Beijing Chunlizhengda Medical Instruments Co., Ltd., Annual General Meeting, May 26, 2026. Announcement • Mar 30
Beijing Chunlizhengda Medical Instruments Co., Ltd. to Report Q1, 2026 Results on Apr 30, 2026 Beijing Chunlizhengda Medical Instruments Co., Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 Reported Earnings • Mar 02
Full year 2025 earnings released: EPS: CN¥0.71 (vs CN¥0.33 in FY 2024) Full year 2025 results: EPS: CN¥0.71 (up from CN¥0.33 in FY 2024). Revenue: CN¥1.04b (up 30% from FY 2024). Net income: CN¥272.1m (up 118% from FY 2024). Profit margin: 26% (up from 16% in FY 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 22% p.a. on average during the next 2 years, compared to a 29% growth forecast for the Medical Equipment industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 16% per year whereas the company’s share price has fallen by 12% per year. Announcement • Dec 26
Beijing Chunlizhengda Medical Instruments Co., Ltd. to Report Fiscal Year 2025 Results on Mar 31, 2026 Beijing Chunlizhengda Medical Instruments Co., Ltd. announced that they will report fiscal year 2025 results on Mar 31, 2026 Buy Or Sell Opportunity • Dec 02
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.0% to HK$16.18. The fair value is estimated to be HK$20.34, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 11% over the last 3 years. Earnings per share has declined by 24%. Revenue is forecast to grow by 38% in 2 years. Earnings are forecast to grow by 25% in the next 2 years. Announcement • Nov 19
Beijing Chunlizhengda Medical Instruments Co., Ltd. Approves Dividend for the Third Quarter Ended 30 September 2025 The Board of Beijing Chunlizhengda Medical Instruments Co., Ltd. announces that the proposal of payment of third quarter dividend of RMB 2.10 per 10 Shares in cash (tax inclusive) for the first three quarters ended 30 September 2025 ("Third Quarter Dividend") to all Shareholders was approved at the EGM. held on November 19, 2025, In order to determine the Shareholders who are entitled to the receipt of the Third Quarter Dividend, the Third Quarter Dividend will be distributed to those Shareholders whose names appear on the register of members of the Company on 25 November 2025 in respect of H Shares. Upcoming Dividend • Nov 17
Upcoming dividend of CN¥0.21 per share Eligible shareholders must have bought the stock before 24 November 2025. Payment date: 19 January 2026. Payout ratio is a comfortable 38% but the company is paying out more than the cash it is generating. Trailing yield: 2.5%. Lower than top quartile of Hong Kong dividend payers (6.6%). In line with average of industry peers (2.3%). New Risk • Nov 07
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 129% Dividend yield: 2.5% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • Oct 31
Third quarter 2025 earnings released: EPS: CN¥0.20 (vs CN¥0.045 loss in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.20 (up from CN¥0.045 loss in 3Q 2024). Revenue: CN¥268.5m (up 110% from 3Q 2024). Net income: CN¥77.1m (up CN¥94.9m from 3Q 2024). Profit margin: 29% (up from net loss in 3Q 2024). The move to profitability was driven by higher revenue. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Medical Equipment industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Oct 21
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$16.82, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 18x in the Medical Equipment industry in Hong Kong. Total returns to shareholders of 53% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$20.84 per share. Announcement • Sep 30
Beijing Chunlizhengda Medical Instruments Co., Ltd. to Report Q3, 2025 Results on Oct 31, 2025 Beijing Chunlizhengda Medical Instruments Co., Ltd. announced that they will report Q3, 2025 results on Oct 31, 2025 Buy Or Sell Opportunity • Sep 09
Now 20% undervalued Over the last 90 days, the stock has risen 48% to HK$16.63. The fair value is estimated to be HK$20.85, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Earnings per share has declined by 30%. Revenue is forecast to grow by 52% in 2 years. Earnings are forecast to grow by 79% in the next 2 years. Valuation Update With 7 Day Price Move • Sep 05
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$17.40, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 16x in the Medical Equipment industry in Hong Kong. Total returns to shareholders of 55% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$20.89 per share. Buy Or Sell Opportunity • Aug 20
Now 22% undervalued Over the last 90 days, the stock has risen 55% to HK$15.96. The fair value is estimated to be HK$20.33, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 10% over the last 3 years. Earnings per share has declined by 29%. Revenue is forecast to grow by 62% in 2 years. Earnings are forecast to grow by 105% in the next 2 years. Buy Or Sell Opportunity • Jul 31
Now 22% undervalued Over the last 90 days, the stock has risen 68% to HK$15.92. The fair value is estimated to be HK$20.49, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 10% over the last 3 years. Earnings per share has declined by 29%. Revenue is forecast to grow by 62% in 2 years. Earnings are forecast to grow by 105% in the next 2 years. Valuation Update With 7 Day Price Move • Jul 17
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to HK$15.60, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 17x in the Medical Equipment industry in Hong Kong. Total returns to shareholders of 41% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$20.52 per share. Announcement • Jun 30
Beijing Chunlizhengda Medical Instruments Co., Ltd. to Report First Half, 2025 Results on Aug 30, 2025 Beijing Chunlizhengda Medical Instruments Co., Ltd. announced that they will report first half, 2025 results on Aug 30, 2025 Announcement • Jun 27
Beijing Chunlizhengda Medical Instruments Co., Ltd. Approves Final Dividend for the Year Ended 31 December 2024 Beijing Chunlizhengda Medical Instruments Co., Ltd. at the 2024 Annual General Meeting held on 26 June 2025 the Board announced that the proposal of payment of final dividend of RMB 0.49 per 10 Shares in cash (tax inclusive) for the year ended 31 December 2024 (Final Dividend) to all Shareholders was approved at the 2024 Annual General Meeting. In order to determine the Shareholders who are entitled to the receipt of the Final Dividend, the Final Dividend will be distributed to those Shareholders whose names appear on the register of members of the Company on 3 July 2025 in respect of H Shares. In order to qualify for receiving the Final Dividend, all transfer documents accompanied by the relevant share certificates must be lodged with the Company's office at No. 10 Xinmi Xi Er Road, Southern District of Tongzhou Economic Development Zone, Tongzhou District, Beijing, the PRC (for holders of A Shares), or the Company's H Share registrar, Tricor Investor Services Limited at 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong (for holders of H Shares) no later than 4:30 p.m. on 2 July 2025. Upcoming Dividend • Jun 23
Upcoming dividend of CN¥0.049 per share Eligible shareholders must have bought the stock before 30 June 2025. Payment date: 31 July 2025. Payout ratio is a comfortable 39% but the company is not cash flow positive. Trailing yield: 1.3%. Lower than top quartile of Hong Kong dividend payers (7.5%). Lower than average of industry peers (2.5%). Valuation Update With 7 Day Price Move • May 06
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to HK$9.98, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 16x in the Medical Equipment industry in Hong Kong. Total returns to shareholders of 26% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$14.37 per share. New Risk • May 04
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 21% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (21% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (16% net profit margin). Reported Earnings • May 01
First quarter 2025 earnings released First quarter 2025 results: Revenue: CN¥229.8m (up 3.6% from 1Q 2024). Net income: CN¥58.1m (up 5.4% from 1Q 2024). Profit margin: 25% (in line with 1Q 2024). Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Medical Equipment industry in Hong Kong. Major Estimate Revision • Apr 04
Consensus revenue estimates fall by 23% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥1.34b to CN¥1.03b. EPS estimate fell from CN¥0.835 to CN¥0.505 per share. Net income forecast to grow 56% next year vs 52% growth forecast for Medical Equipment industry in Hong Kong. Consensus price target down from HK$12.95 to HK$11.51. Share price rose 5.2% to HK$10.10 over the past week. Announcement • Apr 01
Beijing Chunlizhengda Medical Instruments Co., Ltd. Proposes Final Dividend for the Year Ended 31 December 2024, Payable on 31 July 2025 The Board of Beijing Chunlizhengda Medical Instruments Co., Ltd. proposed final Ordinary dividend of RMB 0.49 per 10 Shares for the year ended 31 December 2024. Date of shareholders' approval is 26 June 2025. Ex-dividend date is 30 June 2025. Record date is 03 July 2025. Payment date is 31 July 2025. Declared Dividend • Mar 31
Final dividend of CN¥0.049 announced Shareholders will receive a dividend of CN¥0.049. Ex-date: 30th June 2025 Payment date: 1st January 1970 Dividend yield will be 1.5%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is not covered by earnings (108% earnings payout ratio) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 25% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 20% to bring the payout ratio under control. EPS is expected to grow by 114% over the next 2 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Mar 02
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.33 (down from CN¥0.72 in FY 2023). Revenue: CN¥805.9m (down 33% from FY 2023). Net income: CN¥125.0m (down 55% from FY 2023). Profit margin: 16% (down from 23% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 28%. Earnings per share (EPS) also missed analyst estimates by 53%. Revenue is forecast to grow 32% p.a. on average during the next 2 years, compared to a 27% growth forecast for the Medical Equipment industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Announcement • Jan 27
Beijing Chunlizhengda Medical Instruments Co., Ltd. Provides Earnings Guidance for the Period from 1 January 2024 to 31 December 2024 Beijing Chunlizhengda Medical Instruments Co., Ltd. provided Earnings Guidance for the period from 1 January 2024 to 31 December 2024. For the period, the company estimated that that the net profit attributable to owners will range from RMB 107,824,000 to RMB 127,824,000, which is decreased by RMB 150,000,000 to RMB 170,000,000 (or decreased by 53.99% to 61.19%) as compared to the same period last year. In 2024, the net profit attributable to shareholders of the Company and the net profit attributable to shareholders of the Company after deducting non-recurring profit or loss decreased compared with the same period last year, mainly due to the impact of the continuous deepening of the centralized procurement policy. During the reporting period, the Company actively implemented the national centralized volume-based procurement policy and won the bidding for all joint products in the continuous procurement after the expiration of the state-organized centralized volume-based procurement agreement of artificial joints. In the state-organized centralized volume-based procurement of intraocular lens and sports medicine consumables, all the sports medicine products of the Company won the bidding, and the prices of the Company's related products decreased and gross profit margin declined. In order to cope with the changing industry polices and ensure the stable supply of products that won the bidding in centralized procurement, the Company adjusted the price of channel inventory before the implementation of centralized procurement, resulting in a decrease in revenue and net profit. Announcement • Dec 27
Beijing Chunlizhengda Medical Instruments Co., Ltd. to Report Fiscal Year 2024 Results on Mar 29, 2025 Beijing Chunlizhengda Medical Instruments Co., Ltd. announced that they will report fiscal year 2024 results on Mar 29, 2025 Reported Earnings • Oct 31
Third quarter 2024 earnings released: CN¥0.045 loss per share (vs CN¥0.14 profit in 3Q 2023) Third quarter 2024 results: CN¥0.045 loss per share (down from CN¥0.14 profit in 3Q 2023). Revenue: CN¥128.2m (down 49% from 3Q 2023). Net loss: CN¥17.9m (down 133% from profit in 3Q 2023). Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Medical Equipment industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has fallen by 23% per year, which means it is performing significantly worse than earnings. Announcement • Oct 16
Beijing Chunlizhengda Medical Instruments Co., Ltd. Announces Interim Dividend for the Six Months Ended June 30, 2024, Payable on December 13, 2024 The Board of Beijing Chunlizhengda Medical Instruments Co., Ltd. announced that the proposal of payment of interim dividend of RMB 0.83 per 10 Shares in cash (tax inclusive) for the six months ended 30 June 2024 ("Interim Dividend") to all Shareholders was approved at the Meeting. In order to determine the entitlement to the Interim Dividend, the Company's register of members of H Shares will be closed from 21 October 2024 to 23 October 2024 (both days inclusive) during which period no transfer of H Shares will be effected. In order to be qualified for the Interim Dividend, all the transfer documents of the Company's H Shares together with the relevant share certificates shall be lodged at the H Share registrar of the Company in Hong Kong, Tricor Investor Services Limited at 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong by no later than 4:30 p.m. on 18 October 2024 for registration. The Interim Dividend will be distributed to those Shareholders whose names appear on the register of members of the Company on 21 October 2024 in respect of H Shares. The Interim Dividend will be paid to holders of A Shares in RMB and to holders of H Shares in HK dollar. The actual amount of H Share dividend paid in HK dollar will be calculated according to the average exchange rate of the relevant foreign exchange published by the People's Bank of China the mid-rate of seven business days prior to the date of approval of Interim Dividend in the Meeting. The average exchange rate of the relevant foreign exchange published by the People's Bank of China for the mid-rate of seven business days prior to the date of approval of Interim Dividend in the Meeting (i.e. 30 September 2024 to 14 October 2024) is 1:0.90735 (HKD/RMB). Applying that average, the Interim Dividend for each H Share is HKD 0.091475. The Interim Dividend for the H Shares is expected to be paid on 13 December 2024. Valuation Update With 7 Day Price Move • Oct 14
Investor sentiment deteriorates as stock falls 27% After last week's 27% share price decline to HK$8.20, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 10x in the Medical Equipment industry in Hong Kong. Total loss to shareholders of 52% over the past three years. Announcement • Sep 30
Beijing Chunlizhengda Medical Instruments Co., Ltd. to Report Q3, 2024 Results on Oct 31, 2024 Beijing Chunlizhengda Medical Instruments Co., Ltd. announced that they will report Q3, 2024 results on Oct 31, 2024 Valuation Update With 7 Day Price Move • Sep 26
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$7.90, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 9x in the Medical Equipment industry in Hong Kong. Total loss to shareholders of 48% over the past three years. Major Estimate Revision • Sep 11
Consensus revenue estimates decrease by 13% The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from CN¥1.38b to CN¥1.20b. EPS estimate unchanged from CN¥0.72 per share at last update. Medical Equipment industry in Hong Kong expected to see average net income growth of 39% next year. Consensus price target of HK$15.88 unchanged from last update. Share price fell 5.1% to HK$6.72 over the past week. Recent Insider Transactions • Sep 10
Executive Director recently bought HK$6.0m worth of stock On the 3rd of September, Chunbao Shi bought around 791k shares on-market at roughly HK$7.63 per share. This transaction amounted to 46% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Major Estimate Revision • Sep 03
Consensus EPS estimates fall by 21% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥1.50b to CN¥1.38b. EPS estimate also fell from CN¥0.91 per share to CN¥0.72 per share. Net income forecast to grow 46% next year vs 43% growth forecast for Medical Equipment industry in Hong Kong. Consensus price target down from HK$23.25 to HK$15.81. Share price was steady at HK$7.03 over the past week. Announcement • Jun 18
Beijing Chunlizhengda Medical Instruments Co., Ltd. (SEHK:1858) announces an Equity Buyback for CNY 40 million worth of its shares. Beijing Chunlizhengda Medical Instruments Co., Ltd. (SEHK:1858) announces a share repurchase program. Under the program, the company will repurchase up to CNY 40 million worth of its shares. The repurchase price will not more than CNY 28.56 per share. The repurchased shares will be used for employee stock ownership plan or equity incentives. The repurchases will be funded using company's own funds. The repurchase period will be not more than 12 months. Reported Earnings • Apr 30
First quarter 2024 earnings released: EPS: CN¥0.14 (vs CN¥0.15 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.14 (down from CN¥0.15 in 1Q 2023). Revenue: CN¥221.9m (down 9.9% from 1Q 2023). Net income: CN¥55.1m (down 1.4% from 1Q 2023). Profit margin: 25% (up from 23% in 1Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 25% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Medical Equipment industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has fallen by 23% per year, which means it is performing significantly worse than earnings. Reported Earnings • Mar 30
Full year 2023 earnings: Revenues and EPS in line with analyst expectations Full year 2023 results: EPS: CN¥0.72 (down from CN¥0.80 in FY 2022). Revenue: CN¥1.21b (flat on FY 2022). Net income: CN¥277.8m (down 9.7% from FY 2022). Profit margin: 23% (down from 26% in FY 2022). Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Medical Equipment industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has fallen by 21% per year, which means it is performing significantly worse than earnings. Announcement • Mar 28
Beijing Chunlizhengda Medical Instruments Co., Ltd. Proposes Final Dividend for the Year Ended 31 December 2023, Payable on 31 July 2024 Beijing Chunlizhengda Medical Instruments Co., Ltd. proposed final dividend for the year ended 31 December 2023 of RMB 3.62 per 10 share. The dividend will be payable on 31 July 2024 with record date of 04 July 2024 and Ex-dividend date of 02 July 2024. Date of shareholders' approval on 27 June 2024. Reported Earnings • Feb 29
Full year 2023 earnings: Revenues and EPS in line with analyst expectations Full year 2023 results: EPS: CN¥0.72 (down from CN¥0.80 in FY 2022). Revenue: CN¥1.21b (flat on FY 2022). Net income: CN¥277.8m (down 9.7% from FY 2022). Profit margin: 23% (down from 26% in FY 2022). Revenue is forecast to grow 25% p.a. on average during the next 2 years, compared to a 24% growth forecast for the Medical Equipment industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has fallen by 21% per year, which means it is performing significantly worse than earnings. Major Estimate Revision • Nov 06
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥1.33b to CN¥1.26b. EPS estimate also fell from CN¥0.82 per share to CN¥0.72 per share. Net income forecast to grow 30% next year vs 22% growth forecast for Medical Equipment industry in Hong Kong. Consensus price target up from HK$18.81 to HK$22.21. Share price rose 3.7% to HK$14.50 over the past week. Reported Earnings • Oct 31
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: CN¥251.4m (up 33% from 3Q 2022). Net income: CN¥54.5m (up 3.5% from 3Q 2022). Profit margin: 22% (down from 28% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 27% p.a. on average during the next 3 years, compared to a 27% growth forecast for the Medical Equipment industry in Hong Kong. Major Estimate Revision • Sep 07
Consensus revenue estimates decrease by 12% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from CN¥1.50b to CN¥1.33b. EPS estimate unchanged from CN¥0.82 per share at last update. Medical Equipment industry in Hong Kong expected to see average net income growth of 21% next year. Consensus price target of HK$18.90 unchanged from last update. Share price fell 9.2% to HK$12.04 over the past week. New Risk • Aug 17
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 2.8% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (35% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Valuation Update With 7 Day Price Move • Aug 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to HK$12.64, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 24x in the Medical Equipment industry in Hong Kong. Total loss to shareholders of 69% over the past three years. Announcement • Jun 28
Beijing Chunlizhengda Medical Instruments Co., Ltd., Annual General Meeting, Jul 04, 2023 Beijing Chunlizhengda Medical Instruments Co., Ltd., Annual General Meeting, Jul 04, 2023, at 14:00 China Standard Time. Location: No. 10 Xinmi Xi Er Road, Southern District of Tongzhou Economic Development Zone, Tongzhou Beijing Province China Upcoming Dividend • Jun 23
Upcoming dividend of CN¥0.31 per share at 2.2% yield Eligible shareholders must have bought the stock before 30 June 2023. Payment date: 31 July 2023. Payout ratio is a comfortable 41% but the company is not cash flow positive. Trailing yield: 2.2%. Lower than top quartile of Hong Kong dividend payers (7.8%). Higher than average of industry peers (1.8%). Reported Earnings • Apr 29
First quarter 2023 earnings released First quarter 2023 results: Revenue: CN¥246.4m (down 4.2% from 1Q 2022). Net income: CN¥55.9m (down 25% from 1Q 2022). Profit margin: 23% (down from 29% in 1Q 2022). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to grow 25% p.a. on average during the next 3 years, compared to a 27% growth forecast for the Medical Equipment industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 23% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 02
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥0.79 (down from CN¥0.93 in FY 2021). Revenue: CN¥1.20b (up 8.4% from FY 2021). Net income: CN¥303.8m (down 5.8% from FY 2021). Profit margin: 25% (down from 29% in FY 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) also missed analyst estimates by 7.1%. Revenue is forecast to grow 25% p.a. on average during the next 2 years, compared to a 25% growth forecast for the Medical Equipment industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Feb 22
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$22.00, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 21x in the Medical Equipment industry in Hong Kong. Total loss to shareholders of 25% over the past three years. Valuation Update With 7 Day Price Move • Jan 10
Investor sentiment improved over the past week After last week's 23% share price gain to HK$19.12, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 19x in the Medical Equipment industry in Hong Kong. Total loss to shareholders of 18% over the past three years. Board Change • Nov 16
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 7 new directors. 1 experienced director. 3 highly experienced directors. 3 independent directors (5 non-independent directors). Employee Supervisor Lanlan Zhang is the most experienced director on the board, commencing their role in 2010. Independent Non-Executive Director Rex Wong was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Oct 27
Third quarter 2022 earnings released: EPS: CN¥0.14 (vs CN¥0.24 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.14 (down from CN¥0.24 in 3Q 2021). Revenue: CN¥188.6m (down 40% from 3Q 2021). Net income: CN¥52.7m (down 37% from 3Q 2021). Profit margin: 28% (up from 27% in 3Q 2021). The increase in margin was driven by lower expenses. Revenue is forecast to grow 26% p.a. on average during the next 3 years, compared to a 44% growth forecast for the Medical Equipment industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Oct 18
Investor sentiment improved over the past week After last week's 22% share price gain to HK$13.80, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 14x in the Medical Equipment industry in Hong Kong. Total loss to shareholders of 15% over the past three years. Reported Earnings • Aug 27
Second quarter 2022 earnings released: EPS: CN¥0.22 (vs CN¥0.25 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.22 (down from CN¥0.25 in 2Q 2021). Revenue: CN¥314.3m (up 23% from 2Q 2021). Net income: CN¥83.0m (down 4.7% from 2Q 2021). Profit margin: 26% (down from 34% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions • Jun 24
Executive Director recently bought HK$1.7m worth of stock On the 20th of June, Chunbao Shi bought around 175k shares on-market at roughly HK$10.03 per share. In the last 3 months, they made an even bigger purchase worth HK$2.6m. Insiders have collectively bought HK$7.9m more in shares than they have sold in the last 12 months. Valuation Update With 7 Day Price Move • Jun 21
Investor sentiment improved over the past week After last week's 15% share price gain to HK$11.42, the stock trades at a trailing P/E ratio of 11.4x. Average trailing P/E is 16x in the Medical Equipment industry in Hong Kong. Total returns to shareholders of 86% over the past three years. Recent Insider Transactions • Jun 11
Executive Director recently bought HK$167k worth of stock On the 8th of June, Chunbao Shi bought around 17k shares on-market at roughly HK$10.12 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought HK$325k more in shares than they have sold in the last 12 months. Valuation Update With 7 Day Price Move • Jun 06
Investor sentiment improved over the past week After last week's 16% share price gain to HK$9.76, the stock trades at a trailing P/E ratio of 9.7x. Average trailing P/E is 15x in the Medical Equipment industry in Hong Kong. Total returns to shareholders of 56% over the past three years. Upcoming Dividend • May 30
Upcoming dividend of CN¥0.13 per share Eligible shareholders must have bought the stock before 06 June 2022. Payment date: 15 July 2022. Trailing yield: 1.8%. Lower than top quartile of Hong Kong dividend payers (7.8%). Lower than average of industry peers (2.1%). Recent Insider Transactions • May 14
Executive Chairman recently bought HK$158k worth of stock On the 6th of May, Chunbao Shi bought around 18k shares on-market at roughly HK$8.92 per share. This was the largest purchase by an insider in the last 3 months. This was Chunbao's only on-market trade for the last 12 months. Reported Earnings • Apr 30
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: CN¥0.19. Revenue: CN¥257.1m (up 14% from 1Q 2021). Net income: CN¥74.0m (up 8.1% from 1Q 2021). Profit margin: 29% (down from 30% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 9.1%. Earnings per share (EPS) also missed analyst estimates by 5.1%.