SEHK:1858

Stock Analysis Report

Beijing Chunlizhengda Medical Instruments

Executive Summary

Beijing Chunlizhengda Medical Instruments Co., Ltd., an orthopedic medical device company, engages in the research and development, production, and sale of surgical implants, instruments, and related products in the People’s Republic of China.

Rewards

Earnings are forecast to grow 21.27% per year

Earnings grew by 97.5% over the past year

Risk Analysis

High level of non-cash earnings



Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

How has Beijing Chunlizhengda Medical Instruments's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1858 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.1%

1858

-1.7%

HK Medical Equipment

3.5%

HK Market


1 Year Return

308.9%

1858

24.4%

HK Medical Equipment

2.3%

HK Market

Return vs Industry: 1858 exceeded the Hong Kong Medical Equipment industry which returned 24.4% over the past year.

Return vs Market: 1858 exceeded the Hong Kong Market which returned 2.3% over the past year.


Shareholder returns

1858IndustryMarket
7 Day-6.1%-1.7%3.5%
30 Day-6.4%-3.5%3.1%
90 Day27.2%4.5%1.1%
1 Year318.4%308.9%25.6%24.4%6.0%2.3%
3 Year678.3%639.6%22.2%18.5%25.4%12.7%
5 Yearn/a27.9%21.6%23.0%2.4%

Price Volatility Vs. Market

How volatile is Beijing Chunlizhengda Medical Instruments's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Beijing Chunlizhengda Medical Instruments undervalued compared to its fair value and its price relative to the market?

34.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1858 (HK$46) is trading above our estimate of fair value (HK$6.97)

Significantly Below Fair Value: 1858 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1858 is poor value based on its PE Ratio (34.5x) compared to the Medical Equipment industry average (16.1x).

PE vs Market: 1858 is poor value based on its PE Ratio (34.5x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1858 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: 1858 is overvalued based on its PB Ratio (8.3x) compared to the HK Medical Equipment industry average (2.4x).


Next Steps

Future Growth

How is Beijing Chunlizhengda Medical Instruments forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

21.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1858's forecast earnings growth (21.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 1858's earnings (21.3% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).

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

Revenue vs Market: 1858's revenue (19.6% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 1858's revenue (19.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1858's Return on Equity is forecast to be high in 3 years time (26.5%)


Next Steps

Past Performance

How has Beijing Chunlizhengda Medical Instruments performed over the past 5 years?

29.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1858 has a high level of non-cash earnings.

Growing Profit Margin: 1858's current net profit margins (24.9%) are higher than last year (21.4%).


Past Earnings Growth Analysis

Earnings Trend: 1858's earnings have grown significantly by 29.6% per year over the past 5 years.

Accelerating Growth: 1858's earnings growth over the past year (97.5%) exceeds its 5-year average (29.6% per year).

Earnings vs Industry: 1858 earnings growth over the past year (97.5%) exceeded the Medical Equipment industry 43.4%.


Return on Equity

High ROE: 1858's Return on Equity (23.9%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Beijing Chunlizhengda Medical Instruments's financial position?


Financial Position Analysis

Short Term Liabilities: 1858's short term assets (CN¥782.5M) exceed its short term liabilities (CN¥245.5M).

Long Term Liabilities: 1858's short term assets (CN¥782.5M) exceed its long term liabilities (CN¥19.0M).


Debt to Equity History and Analysis

Debt Level: 1858 is debt free.

Reducing Debt: 1858 has not had any debt for past 5 years.

Debt Coverage: 1858 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1858 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1858 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 1858's debt is covered by short term assets.


Next Steps

Dividend

What is Beijing Chunlizhengda Medical Instruments's current dividend yield, its reliability and sustainability?

0.74%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%2.2%markettop25%6.2%industryaverage1.1%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: 1858's dividend (0.74%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.21%).

High Dividend: 1858's dividend (0.74%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.15%).


Stability and Growth of Payments

Stable Dividend: 1858 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1858 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1858 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 1858'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 Beijing Chunlizhengda Medical Instruments's salary, the management and board of directors tenure and is there insider trading?

6.1yrs

Average management tenure


CEO

Chunbao Shi (49yo)

9.3yrs

Tenure

CN¥1,520,149

Compensation

Mr. Chunbao Shi has been General Manager and Chairman of the Board for Beijing Chunlizhengda Medical Instruments Co., Ltd. since September 2010. Mr. Shi has been Sales & Marketing Director of Beijing Chunl ...


CEO Compensation Analysis

Compensation vs Market: Chunbao's total compensation ($USD216.91K) is below average for companies of similar size in the Hong Kong market ($USD486.90K).

Compensation vs Earnings: Chunbao's compensation has increased by more than 20% in the past year.


Management Age and Tenure

6.1yrs

Average Tenure

47yo

Average Age

Experienced Management: 1858's management team is seasoned and experienced (6.1 years average tenure).


Board Age and Tenure

9.3yrs

Average Tenure

49.5yo

Average Age

Experienced Board: 1858's board of directors are considered experienced (9.3 years average tenure).


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

BuyHK$2,831,59508 Nov 19
Citigroup Inc.,Banking and Securities Investments
EntityCompany
Shares57,000
Max PriceHK$49.68
SellHK$3,185,20819 Sep 19
Orchid Asia Group Management, Ltd.
EntityCompany
Shares80,000
Max PriceHK$39.82
SellHK$1,441,08904 Sep 19
Orchid Asia Group Management, Ltd.
EntityCompany
Shares45,200
Max PriceHK$31.88
BuyHK$16,560,00102 Sep 19
Dawn Capital Management Limited
EntityCompany
Shares600,000
Max PriceHK$27.60
SellHK$321,46405 Jul 19
Orchid Asia Group Management, Ltd.
EntityCompany
Shares20,000
Max PriceHK$16.07
SellHK$2,191,55103 May 19
Lai Ming Lam
EntityIndividual
Shares125,200
Max PriceHK$17.50

Ownership Breakdown

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


Management Team

  • Pui Sum Ip (59yo)

    Company Secretary

    • Tenure: 4.8yrs
  • Yumei Liu (30yo)

    Chief Financial Officer

    • Tenure: 1.4yrs
  • Shujun Yue (47yo)

    Executive Director & Deputy GM

    • Tenure: 9.3yrs
    • Compensation: CN¥1.24m
  • Chunbao Shi (49yo)

    Chairman

    • Tenure: 9.3yrs
    • Compensation: CN¥1.52m
  • Jianliang Wang (40yo)

    Domestic Sales Director & Executive Director

    • Tenure: 3.1yrs
    • Compensation: CN¥319.08k

Board Members

  • Yiming Lin (50yo)

    Non-Executive Director

    • Tenure: 9.3yrs
  • Shujun Yue (47yo)

    Executive Director & Deputy GM

    • Tenure: 9.3yrs
    • Compensation: CN¥1.24m
  • Chunbao Shi (49yo)

    Chairman

    • Tenure: 9.3yrs
    • Compensation: CN¥1.52m
  • Xiaobo Tong (59yo)

    Independent Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: CN¥100.00k
  • Lanlan Zhang (30yo)

    Employee Supervisor

    • Tenure: 9.3yrs
    • Compensation: CN¥34.47k
  • Jianliang Wang (40yo)

    Domestic Sales Director & Executive Director

    • Tenure: 3.1yrs
    • Compensation: CN¥319.08k
  • Changyin Ge (54yo)

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥100.00k
  • Jinyong Zhan (50yo)

    Chairman of the Board of Supervisors

    • Tenure: 0yrs
  • Xiaohui Pei (46yo)

    Supervisor

    • Tenure: 3.4yrs
  • Wai Ho (55yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥54.44k

Company Information

Beijing Chunlizhengda Medical Instruments Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Beijing Chunlizhengda Medical Instruments Co., Ltd.
  • Ticker: 1858
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: HK$6.329b
  • Shares outstanding: 138.34m
  • Website: https://www.clzd.com/tc/index.php

Number of Employees


Location

  • Beijing Chunlizhengda Medical Instruments Co., Ltd.
  • No. 10 Xinmi Xi Er Road
  • Southern District of Tongzhou
  • Beijing
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1858SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDMar 2015

Biography

Beijing Chunlizhengda Medical Instruments Co., Ltd., an orthopedic medical device company, engages in the research and development, production, and sale of surgical implants, instruments, and related produ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 12:54
End of Day Share Price2019/12/13 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.